Colliers International-Greater Phoenix, a commercial real estate firm, recently issued a solar energy report for the state of Arizona. While I didn’t read the entire report, the overarching message is that Arizona is positioned to become a leader in the solar industry. This is a far cry from the position Arizona was in earlier this year. Several months ago, I actually wrote about the challenges Arizona was facing in becoming a leader in the solar industry and the steps that needed to be taken to better position our state (according to government officials and industry experts). Obviously, the wheels were set in motion and action has been taken, because Arizona has gone from being entirely behind the eight ball to now being in the running for leadership status. Industry experts are actually hopefull that solar energy will become one of the state’s economic engines. Aside from the obvious abundance of sunshine, there are several other factors according to the solar energy report that give Arizona a fighting chance. By 2025, APS and SRP must produce 15% of their energy from renewable sources, with 30% coming from rooftop solar systems. Based on these figures, Arizona has one of the most aggressive renewable energy standards in the country. The renewable industries bill that was passed this year provides competitive incentives for solar companies to choose Arizona as their home base. Something that I wasn’t aware of is that ASU houses the World’s first school of sustainability, in addition to their renowned solar power and photovoltaic testing laboratories. Governor Brewer also commented in the report that money from the American Recovery & Reinvestment Energy Act will be used for public building solar projects and a grant program for commercially created renewable energy. These factors combined, among many others, help to position Arizona has a driving force in the solar industry. The full report can be found at www.colliers.com/phoenix

Holly
Public Relations

Anything that has to do with solar and advancing the solar industry, I want to support. I really do. I’m a big believer that expanding Arizona’s footprint in the solar arena is going to help diversify our economy and hopefully assist us the next time we face a downturn. Aside from that, I feel alternative energy is just the right thing to do. A recent topic in the solar world is there are several Valley schools that would like to take advantage of federal stimulus money and install solar systems on their facilities. Over the next 15 years, utilizing solar energy to power the schools will save on estimated $4.7 million for the Scottsdale schools alone. Sounds great, right? Now here lies the rub. Unfortunately, schools, government agencies, and non-profits aren’t able to use the significant tax incentives that other businesses have access to. Without these incentives, many won’t be able to afford the solar systems. There is an initiative being proposed to the Corporation Commission by a California based solar company that has a presence in Arizona. This company wants to essentially serve as a middleman by taking advantage of the tax benefits and selling the energy to the schools for less than what they would pay their utility companies. I have mulled this over and tried to see it from both sides of the spectrum; however, I always come back to the same thought. Allowing a private company to essentially act as a utility broker is wrong. There are regulations in place by the Corporation Commission for a reason; yet, the solar company wants to be dismissed from these regulations. I wish the schools could take advantage of the same tax incentives as a private company, but I don’t think this is the way. If we make an exception for them, then when does it stop? Wouldn’t it make more sense to work towards passing a new bill that enables non-profits and government agencies to benefit from the tax incentives?

Holly
Public Relations

A recent article in the Phoenix Business Journal got under my skin. The article was simply a report on facts, but I found the facts to be pretty appalling. The article initially began on a positive note. Approximately $1.5 million in federal stimulus money was awarded to Arizona projects. The projects range from a large order of chicken eggs, to park improvements projects, to a major solar panel installation at a military base. Five companies, spanning the state, were awarded contracts, totaling approximately $1.2 million of this money. It is fantastic that Arizona-based companies won these bids, because now the state will benefit in many ways from the revenue stream.

The disheartening news is that three out-of-state companies were awarded the remainder of the $1.5 million, including a New York-based construction company enlisted for a solar panel installation project in Yuma. I’m not sure who is in charge of determining which companies will ultimately do the work, but wouldn’t it have been a bigger boon for our state if all of the contracts were given to local companies? I’m sure there are many competent companies throughout the United States that can do the same job. However, if that chunk of federal stimulus money is to fully benefit Arizona, I feel Arizona companies should have been chosen over comparable companies elsewhere. Obviously the topic of solar installations is closer to my realm of knowledge than construction dumpers, but I’m sure there are local companies that could have handled the solar panel installation job. It would be nasty of me not to congratulate the company that won the bid, since every state can use the help right now. But, my loyalty to my own backyard and the hard working people in it, keeps me from being very happy about the choice.

Holly
Public Relations

It has been a busy week in the solar arena. Solar energy buy backs, area schools hoping to cash in on federal stimulus money, and the news of the passing of SB 1043. A big step in providing a much needed boost to our economy, this new law gives a variety of incentives to solar companies locating their headquarters or factories in our sunny state. On the radar, but always missing the boat, Arizona now has a competitive advantage in attracting large solar companies. The bill gives solar companies a credit on their capital investment and a significant discount on their property taxes. In hopes of creating better employment opportunities, these companies must meet minimum salary and health insurance requirements.

Now, the next step is getting these solar companies to commit so we can benefit from this new law. Fortunately, this week, a group from the Greater Phoenix Economic Council (GPEC) is at the Intersolar North America conference meeting with a slew of executives from solar companies. It’s too soon to tell what these meetings will hold, but reports are that 15 companies are planning new facilities. Cross your fingers that GPEC and city officials are presenting a convincing case. If so, this newly passed law will give Arizona a larger claim on the solar market.

Holly
Harmon Solar Public Relations

What an exciting time! It seems that nearly every day when I open the newspaper, there are more and more advancements with solar energy. The last major news announcement was about the advancement of the solar industry bill, 1403, to attract new solar energy related companies to the state. The passing of this bill has the potential to position Arizona as a hub for companies involved with solar energy. The latest major announcement this week is that Arizona was among ten states to be awarded 50% of an approved $55 million of their American Recovery and Reinvestment Act (ARRA) funds through the State Energy Program. A variety of proposed programs will advance energy efficiency and renewable energy in Arizona, including solar energy projects. Among many programs, the grants and loans will help make government buildings more energy efficient; reduce energy consumption in Arizona schools; advance the development of renewable energy systems on high profile buildings and public spaces; and offer further incentives for solar energy users. It is not clear which of these projects will receive immediate attention; however the objective of the ARRA is to stimulate private investment, create jobs, and speed economic recovery. Let’s hope the approval of these funds will not only do just that but also put us on a stronger path to energy independence!

Holly
Public Relations

In an effort to increase Arizona’s competitiveness in the solar manufacturing arena, early this week the State Senate passed a solar industry bill, 1403, to attract new industry to the state. If approved by the House of Representatives, the solar industry bill will give tax incentives to manufacturers of solar energy equipment.

Opponents of the solar industry bill argue that tax breaks should not be limited to one industry, since tax incentives would benefit a variety of industries. While there is definitely truth to this sentiment, given the current financial situation it seems we need to start somewhere. If 13 companies are waiting on the passage of the solar industry bill to determine where they will locate, we cannot afford to miss out on this opportunity. Advances in the solar industry are not a phase; they are the way of the future. Positioning Arizona as a solar industry hub will secure a stake in this growing arena and hopefully expand our state’s playing field for revenue.

Companies that take advantage of the solar industry bill breaks must meet certain criteria, including higher wages and guaranteed healthcare for its employees. Not to mention, if these solar manufacturers chose to set up shop in Arizona, our sluggish construction industry will benefit from the projects. Hopefully the solar industry bill will pass the House so we can benefit from the growth.

Holly
Harmon Solar Public Relations

While I don’t claim to be an economics expert, I’m still interested in the health of the economy, particularly in our own backyard. A recent article in the Arizona Republic, with the headline “Arizona’s Economic Efforts Lagging,” had me concerned. The article talks about the outcome of three Greater Phoenix Economic Council forums recently held. The forums placed a heavy emphasis on solar energy companies, which is undoubtedly the next big thing for fueling the economy. A main point addressed in these forums is that Arizona appears to be behind the curve compared to other states with economic development efforts. The positive side to this story is that Arizona is a prime target for solar energy companies looking for a home. Although Arizona has abundant sunshine, more important to attracting solar energy companies are favorable business and tax incentives. It seems the Greater Phoenix Economic Council is on the right track, creating a document that addresses the changes needed to attract these solar energy companies. What’s not clear to me is where we go from here? A plan does no good if it sits on a shelf. Hopefully this plan will be approved and these programs fast tracked so that Arizona does not miss out on attracting solar energy companies to our state.

Holly
Harmon Solar Public Relations