Solar Tax

Arizona is implementing a new levy on homes that install solar plates on their homes and still plug into the grid.  They will be charged 70 cents for every kilowatt of installed capacity.  The people implementing this tax still say that solar power would still be economically viable but it is just another disincentive for people to try and help the environment.  Installing solar panels on one’s roof is supposed to create a positive externality for the environment but many people don’t do it because its easy enough to receive your power from the local grid.  The people installing solar powers are trying to help the environment and now they will be taxed for it.


  1. milsteib Said,

    November 26, 2013 @ 7:33 pm

    It’s insane that Arizona would charge a levy for solar panel use. Hopefully the people who approved this fee are not reelected and the levy is repealed. The fact that people who are trying to support renewable energy are being taxed in this manner is outrageous.

  2. kipnisj Said,

    November 27, 2013 @ 7:22 pm

    What’s interesting about this article is how clearly it demonstrates how money is used as a signifier of worth to people. The utilization of a tax that is unabashedly to keep people using one product and preventing them from using a substitute which, I think is rather shady ethically. It seems that substitutes is the most practical way for buyers to escape a tax. But the tax is used as an incentive to direct people’s actions.

  3. Nicky Tynan Said,

    December 2, 2013 @ 3:39 pm

    While I agree with your sentiments with regards to encouraging solar energy, a little more information should be provided on what the fee (or tax) is being used for. There is a redistributive issue if the wealthier households install solar panels and no longer cover the costs of maintaining the distribution network, requiring these costs to be covered only by lower income households who do not install solar panels. I do not know whether this is happening but it is information that would be required to be fully informed on this issue.

  4. warzalaj Said,

    December 2, 2013 @ 8:17 pm

    I think it’s interesting to consider the effects of this. On one hand, the levy could discourage users, but it will also lead to a rise in low-income households utilizing solar panels. The externalities of this will be interesting to follow.

  5. millemad Said,

    December 3, 2013 @ 9:07 pm

    This is an interesting article, it demonstrates an incentive for consumers to use the solar panels so they won’t have to pay the .70 (cent) tax. This could overtime help make Arizona a greener and more ecofriendly state which could encourage other states to follow their lead.

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