by AMANDA H. MILLER, CleanEnergyAuthority, May 6, 2014

Solar in Arizona
Photo: Arizona Republic
Source: www.cleanenergyauthority.com
Homeowners who are leasing rooftop solar arrays in Arizona could be hit with an average $152 a year property tax bill they weren’t counting on when they decide to go solar.
The state department of revenue recently reinterpreted a tax policy that exempts rooftop solar equipment from property tax, determining that the exemption only applies to those who own their solar arrays, not people who lease solar panels.
The state Department of Revenue said the leased panels are merchant power plants and the leasing companies should pay tax on them.
Those taxes would flow through to customers.
Solar leasing accounts for the majority of the distributed solar generation in Arizona and is widely adopted by middle class residents who can’t afford to buy complete systems outright.
Most who lease rooftop solar systems save $60 to $120 a year over buying all of their power from Arizona Public Service. The new property tax would erase the cost benefit of going solar, solar advocates say.
“Arizona is breaking new ground for being an extremely strange political environment,” said Bryan Miller, vice president of public policy for solar leasing company Sunrun and president of The Alliance for Solar Choice.



