CA Considers Taxing Solar Power Generation

California is considering a proposal by the state Public Utilities Commission to charge an 'exit tax,' proportional to the amount of power you generate, on electricity generated by means such as solar panels for your own use. I would expect a state like California to try and encourage the adoption of alternative power sources, but this seems a really odd way of doing it. Two groups have started lobbying against this tax. If passed, it sets a precedent that many fear will lead to similar taxes outside CA.

Comments

Re:This is ridiculous

[Anonymous Coward]

Taxing water and land are different in that they are *limited*. My owning land precludes anyone else from owning that land, but my using sunlight doesn't take away from anyone else potential use. The sunlight was falling on my property so no one else could even get a chance to use it without my permission, and unlike water the sunlight can't "flow" onto someone else's land for their use.

Air, for all purposes currently, is effectively unlimited. Would we even consider the idea of taxing breathing?

Re:attention Sheep

[Gigs]

I'm confused on what your point is or if its any different than what I said:

because of high electricty prices which were caused by an increase in demand.

California decided to privatise it's power generation system, but thanks to only partial deregulation which was written into the laws by the liberal government that could not let go, because we all need managed, left to our own we would all perish. (that last part was sarcastic!)

and market manipulation I assume you mean the fact that the wholesalers didn't lower their prices and the distributers had to layoff their workers that maintain their systems.

it ended up with large increases in the cost of power caused by the fact that the wholesalers still needed to build new infastructure to supply demand. And the distriubuters now had to replace infastructure that had not been maintained due to lack of a paid work force.

and blackouts to go with it. caused by the fact that the orginal law did nothing to solve the problem of demand outstepping supply. It just swept it under the carpet for a few years. When the lights started to go out it suddenly became a huge issue.

Very, very strange, and backwards...

[DarkVein]

Most states give tax incentives to alternative energy. Many require power companies to buy back excess power, not charge for it. Some of those will buy back into the red, so the power company has to pay you at the end of the month.

In fact, since 2000, California has:

• Started an incentive program that grants a one-time payment of $4.50-$6.50/watt generated by homes or businesses connected ot the LA DWP power grid, starting 2000/9/1 and ending five years later.
• The State of California provides an income tax deduction of 15% towards the net cost of installed grid-connected solar electric systems. This new tax credit is retroactive to January 2001.

If you put solar panels on your roof, Fairfax Virginia county will allow you to deduct the value of the panels from the cost of your roof, for tax purposes. HOAs sometimes prevent this when they're obtrusive, but they don't have to be.

In short, way to backpedal California! I have an idea. Why don't you also give tax breaks for the rich, and support failing business models based on absolute control of copyright? Same mentality involved there, also. Kill your own economy early off for a few extra bucks before your die.