Comments on: US Solar Feed-in Tariff & Value Of Solar Tariff Beneficiaries May Face More Taxes

By: Bob_Wallace

Bob_Wallace — Wed, 28 Aug 2013 00:17:00 +0000

One would have to examine the current subsidy regulations in order to see if selling part of the produced electricity would cause the 30% tax credit to be pulled.

That is not necessarily the case. What it would more likely do it to make it impossible to depreciate the cost as a business expense. Remember, the wind industry gets a choice between a 30% ITC or 2.2c/kWh PTC.

“The payments a consumer receives for solar power generated under these
arrangements will likely be considered taxable gross income.”

And it makes sense that income would be treated as income for tax purposes.

By: Karl Rabago

Karl Rabago — Tue, 27 Aug 2013 23:41:00 +0000

I am not a tax attorney and this is not tax advice, but . . . Please read the memo carefully – it is not the NAME “net metering” or “FIT” or “VOST” that creates the potential tax problem. It is ultimately whether the customer SELLS their solar generation to the utility. The memo says that if on-site consumption is not at least 80% of the generation, the customer may have a SALE problem. A tariff configured as a credit, like Austin’s VOST, is better than one structured as a sale. There are other things you can do, like we did in Austin with the VOST. Also, if you lose the individual tax credit, you could apply for business investment tax credit. More complicated, but someone should look into it.

So, I am disappointed with the memo not making these points more clear, for making it seem like the NAME of the rate is what is controlling, and for the way the story is being covered. (Exception – Herman Trabish at GTM has worked hard to get the facts out there.)

By: Bob_Wallace

Bob_Wallace — Tue, 27 Aug 2013 21:39:00 +0000

More likely we’d regulate distribution. Distribution is in a monopoly position which makes it a regulation target.

Turn generation, storage and brokerage free to operate in a more free market mode. Let customers pick an electricity broker and have a standard distribution fee added to their bill.

The brokers would purchase generation and storage as needed in order to keep power flowing to their customers at the agreed price.

By: Kiwiiano

Kiwiiano — Tue, 27 Aug 2013 21:29:00 +0000

If the utilities make the cost of connection uneconomic by spurious taxes, surcharges, etc, people will just opt to go off-the-grid entirely. Or organise co-operative sale of surplus power to neighbours. There are more ways to kill a cat than stuffing its neck with canaries.

By: driveby

driveby — Tue, 27 Aug 2013 12:36:00 +0000

vertical?

By: Shiggity

Shiggity — Tue, 27 Aug 2013 03:30:00 +0000

Well a FiT + 30% off a solar installation would be too strong. The growth would be…what’s faster than exponential?

By: MrEnergyCzar

MrEnergyCzar — Tue, 27 Aug 2013 00:52:00 +0000

Is this a joke? Who is funding the opposition to the FIT? Would be interesting to know.

MrEnergyCzar