The Arizona Solar Leadership Conference

I had a chance to attend the Arizona Solar Leadership Conference at the Downtown Phoenix Sheraton last week on a topic discussion on a strategic plan for the future. In the wake of expiring treasury grants, the pressure is on for the solar production community to get support from legislation.

Dr. Robert Lang opened up that morning with a keynote speech discussing the prevalence of solar power in the state of Arizona. The area stretching from the Phoenix area to the Mexican border is known as the sun corridor and is home to 9.1 million people. The state is next door to California, who is a prominent leader in legislation on renewable energies. Arizona can take this opportunity to be an exporter to California.

One of the biggest challenges for solar is that it is considered a fixed asset. It isn't like buying an Ipad, where it is easily replaced or upgraded. In order to be successful, a balance should be created when distributing; small scale for consumption, large scale for exporting.

The opening speaker was followed by a series of panels focusing on industry and infrastructure, finance and economic development, and regulation and policy. I was very interested in the finance and economic aspect. They discussed how certain state and federal incentives and risk taking is helpful in establishing something new. An example of this would be the railroad, and how it has benefited from having imminent domain, legal immunity, and protection from competition.

The finance and economic panel talked about current legislature affecting/influencing solar. SB1043 provides an income tax credit and favorable property tax declassification. SB1554 is a production-based incentive for companies making a sizable investment and are already producing energy. Additionally, there is a competitive package by the governor provided in a bill to increase job creation and diversify Arizona from a retirement community.

A bad economy allows time to consider the importance of solar and determine what is needed. First of all, capital is needed to finance projects. With states in deficits, this is a challenge. The education of investors and policy makers is key, as this will lead to strategic legislation. Some considerations that were brought included deciding what market Arizona should focus on (generation, energy-related manufacturing, or technological innovation), and what stakeholders (other than legislators) should also be included in the process of education.

It was a fascinating event to be at and listen to. I got to listen to the opinions of those sitting around me during our table-top discussions on the matter. I'm curious to see how things turn out and what strategic plan will look like as a result of their research.