Arizona in the United States will impose a tax on self-generated electricity, which is accused of harming the solar economy

Arizona in the United States will impose a tax on self-generated electricity, which is accused of harming the solar economy. Arizona is the second largest solar market in the United States after California. The state once drummed...

Arizona is the second largest solar market in the United States after California. The state once encouraged self-generation of electricity. Now, booming self-generation is being blamed for hurting the state's solar economy. According to a report by the US "Business Week" on November 22, Arizona has authorized its largest public service company, Arizona Public Service (APS), to collect taxes and fees from households that generate electricity through rooftop solar power. Arizona will become the first U.S. state to introduce fees for rooftop photovoltaic users. However, some commentators believe that this is not enough to reverse the damage caused by self-generation to the solar economy.

APS’s original charging standard was US$8 per kilowatt per month (approximately RMB 48.78). However, it was finally decided that users who install rooftop solar systems after December 31, 2013 will pay US$0.7 per kilowatt per month (approximately RMB 4.27). This standard is much lower than the original planned fee. At the same time, 18,000 households that installed solar systems before December 31, 2013 will be exempted from payment. According to Bloomberg estimates, this is equivalent to saving each household 5 to 10 US dollars (approximately RMB 30.48 to 60.97 yuan) per month.

The conflict between Arizona’s solar industry and public utilities has a long history. This new charging policy has become the first shot fired at the solar energy industry. Households are now living off the grid and even supplying energy to the grid through self-generated electricity. As the second-largest solar market in the United States, Arizona has become a key battleground for the public sector to compete with the solar industry over whether it can profit from household power generation.

- And the outcome of this war is hard to determine. According to both sides, each side has something to lose. APS Chairman Don Brandt said in a statement that this decision cannot protect the interests of the 1 million residents who do not have solar power systems installed. APS also said that users who use solar panels can use the grid for free without paying the fees required for grid maintenance. This cost ends up being borne by other residents who do not have solar panels installed, which is unfair to them.

As for the solar energy company, they do not want any fees. While most analysts view the decision as a narrow win for the solar industry, any tax above zero would be a disaster. The Solar Energy Industries Association (SEIA) said in a statement that it was "devastated by the precedent-setting levy decision." (Internship compiler: Li Mingxia Li Wen Reviewer: Zhao Xiaoxia)