Expiration of tax break threatens solar projects

Arizona’s Corporation Commission warned last week that unless a tax break for solar power generation is extended, two big projects in the state might be shelved.

Commissioners said if the investment tax credit isn’t extended beyond its Dec. 8 deadline, Arizona’s place “as the solar energy capital of the world” will be jeopardized.

U.S. Rep. Gabrielle Giffords, D-Ariz., received the plea as did other Arizona congressional members.

The ACC’s letter points out that Arizona Public Service is involved in two proposed solar projects in the state, one near Gila Bend, and another to be built by a consortium of other private utilities. Site for that plant isn’t known yet.

The corporation commission has required that public electric utilities generate 15 percent of their power by renewable sources by 2025.

Most utilities in the state depend on natural gas for their energy source and it is becoming more and more expensive.

In 2006, the commission approved the Renewable Energy Standard, or RES. This renewable energy can be solar, win, biomass, biogas, geothermal and other sources to generate “clean” energy.

Besides renewable energy power stations, experts say individuals can help save energy and cut their bills by using such things at home as solar electric panels, solar water heading, solar air-conditioning and small wind generation.

The commissioners wrote, “With more than 300 days of sunshine a year, solar power is the logical choice for our state.”

The letter said for the state to “take its rightful place as the solar energy capitol of the world we need Congress to pass legislation to extend the solar ITC” investment tax benefit.

Giffords sent the press some things she has being doing to extend the solar energy tax incentive, voting in the House to extend the incentive, extolling the value of solar energy at a field hearing in March and leading a congressional inspection of a solar plant at Nellis Air Force Base near Las Vegas.

She said the plant, costing $100 million, was built on 140 acres. It consists of giant photovoltaic array that tracks the sun to get maximum exposure.

The electricity generated there will be used by the 12,000 people who live and work at Nellis.

jlamb@gvnews.com | 547-9749