By Rachel Leingang | Arizona Capitol Times
The future of solar in Arizona is getting a bit cloudy.
Facing the end of a major federal subsidy and utilities pushing policy changes to limit savings homeowners with solar panels will receive through net metering, solar companies nevertheless say they will be able to survive – without subsidies.
The federal investment tax credit currently provides solar customers with a 30-percent reduction in income taxes associated with solar panels. The tax credit will expire at the end of 2016 for residential solar users and reduce to 10 percent for commercial solar – unless Congress votes to extend it.
“It’s devastating. Most industry observers believe if it isn’t extended, there will be quite a big loss of solar market activity,” said Mark Holohan, president of the Arizona Solar Energy Industries Association.
