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State solar subsidies fall victim of downturn

By | July 29, 2010, 3:26 PM PDT

If you were planning on covering the cost of decking out your house in solar panels with a tax credit, you should take pause before you act. Many state and local governments in the U.S. are cutting back or eliminating programs that incentivize clean energy to make up for budget shortfalls.

Today, Scientific American published a roundup of rebate programs that were either suspended or cut – from Arizona to California, Florida, Massachusetts, New Jersey, and Pennsylvania. The subsidies are provided to help cover the upfront costs of purchasing solar arrays. Oregon reduced its tax credits earlier this month.

In Florida, one family had the cost of its solar array added to their property’s assessed value, and were given a tax increase for going green. An existing state tax incentive for installing renewable energy systems was recently repealed when Florida voters approved a constitutional amendment that was intended to promote renewable energy.

The state Legislature passed nothing in its place, and owes approximately $US40 million in outstanding rebate checks.

In New Jersey, a trade association that represents solar contractors filed suit against the state in May for taking money from a ratepayer’s fund without replenishing it. The suit alleges that the state acted unconstitutionally.

However, there is at least some upside for homeowners: Scientific American notes solar arrays are becoming more affordable over the long haul. The articles notes that costs are offset by the higher market value of the tradeable credits that homeowners receive for the solar power that they generate, and that the average price of an array has dropped by a third over the past several years.

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David Worthington

About David Worthington

David Worthington is a contributing editor for SmartPlanet.

David Worthington

David Worthington

Contributing Editor, Energy

David Worthington has written for BetaNews, eWeek, PC World, Technologizer and ZDNet. Formerly, he was a senior editor at SD Times. He holds a degree from Temple University. He is based in New York.

Follow him on Twitter.

David Worthington

David Worthington

David does not have financial holdings that would influence how or what he covers. Occasionally he consults for other companies; should David cover a topic in which a client is involved, he will disclose this fact in his writing. His views do not represent those of ScaleOut Software.

He writes for SmartPlanet and is not an employee of CBS.

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Massachusetts is doing one better...
They are taxing replacement windows.

So you spend thousands of dollars to replace old leaky windows to save heating oil and the environment and the state punishes your good deed with a $45 per window tax on the replacement windows.

That is how liberals encourage helping the environment.
Posted by Hates Idiots
30th Jul 2010
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Let it compete WITHOUT Subsidies
Why do we have to subsidize anything. Let it either compete on it's merits and savings of whatever, or let it fail.

the Free Market rules. Not a centralized economy. China learned that, the Soviet Union broke up because of that.
Posted by Albee_Freeoneday
30th Jul 2010
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I agree with Albee...
This is madness.

They collect $1 million in taxes a year, take out $100,000 for the bureaucrats salary, another $100,000 for his pension and another $100,000 to cover the cost of an office and paperwork.

That leaves $700,000 in subsidies you can give to an industry that will move to China in 9 months as happened with Evergreen tech in Massachusetts with $25 million in taxpayer money.

Here is an idea. Lets stop taxing energy efficient home improvements to pay subsidies for energy efficient home improvements. All we are doing is giving a bureaucrat a job shuffling money.
Posted by Hates Idiots
30th Jul 2010
0 Votes
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This is the kind of madness you get...
...when you attempt to regulate behavior through subsidy, and
the risks consumers take when they attempt to feed from the
state's trough.

In the end, citizens just get more jaded. Personally, I'm waiting for
such projects to become "sustainable" on their own, without state
help. Only then can I be assured of not getting ripped off.

Perhaps a better title for this story might have been "State
sustainability projects unsustainable".
Posted by JohnMcGrew@...
2nd Aug 2010
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RE: State solar subsidies fall victim of downturn
If they quit subsidizing petroleum production gasoline would probably cost $5 a gallon.
Posted by riverat1
2nd Aug 2010
0 Votes
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...and it would still be cheaper by half...
...than most of the other subsidized solutions.
Posted by JohnMcGrew@...
2nd Aug 2010
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RE: State solar subsidies fall victim of downturn
Political dialectics aside, riverat1 has a point. Subsidies for home owners to solarize their homes amount to small potatoes.

Why, pray, are we subsidizing hugely profitable industries? These subsidies cost taxpayers hundreds of billions of $$$.

Let's plug the big leaks before we get all overheated about the little ones.
Posted by Le Spaz dArgent
26th Aug 2010
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