Battle of the States Begins: Arizona Wants Solar Business

Arizona wants to be the “solar-energy hub of the world,” Kristin Mays, chair of the Arizona Corporation Commission, which regulates utilities in the state, said at the Intersolar North America conference in San Francisco this week.

The state last week enacted a law that offers new incentives, including a tax credit of up to 10 percent, for solar companies that set up shop there.

At the Intersolar North America conference in San Francisco this week, some state rivalry became apparent as Arizona leaders argued the state’s advantages compared to California. “We know the Mojave desert’s off limits. Well, the desert in Arizona is open for business,” said Barry Broome, CEO of the Greater Phoenix Economic Council, to laughter from the audience.

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Mays added that Arizona has no net-metering cap. That’s been a sore issue in California, which restricts net metering – an arrangement in which ratepayers can feed solar electricity back into the grid, only paying for the net amount of electricity that they use in a month – to 2.5 percent. Solar advocates say that installations will stop, if the cap isn’t lifted, as one utility, the Pacific Gas and Electric Co., is expected to reach the net-metering cap next year.

Arizona was also the first U.S. state to establish a solar energy standard, which calls for the state to get 15 percent of its electricity from solar power by 2025, and the commission expects to look at raising that goal, Mays said. In addition, the state is working to build more transmission, not just into Phoenix, but also into Los Angeles and Las Vegas, to distribute electricity where it’s needed, she said.

“We’re going to see California and Arizona almost become a combined market,” Broome said. Arizona hopes to attract solar companies, factories and projects so that it can supply that market. Meanwhile, other states also are making solar plays. Oregon and Washington are considering proposals for feed-in tariffs, for example.

Image courtesy of Brian Auer via a Flickr Creative Commons license.

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