Ditch solar tax credit for private financing, group advises

By Alan Yonan Jr.

POSTED: 01:30 a.m. HST, Feb 13, 2013

~~<p>It makes more economic sense for the state to promote private-sector initiatives to help Hawaii residents pay for rooftop solar systems than to rely on tax credits, which are a drain on state revenues, according to a study released Tuesday by the University of Hawaii Economic Research Organization.</p>
<p>UHERO researchers estimate that installing a solar photovoltaic system on every owner-occupied single-family home statewide could theoretically cost the state as much as $1.4 billion in lost tax revenue based on new renewable energy tax credit rules that went into effect Jan. 1. Under the older, more generous rules, lost tax collections could have been as high as $2.1 billion. The study did not take into account technical constraints on PV installations, such as circuit capacity issues.</p>
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It makes more economic sense for the state to promote private-sector initiatives to help Hawaii residents pay for rooftop solar systems than to rely on tax credits, which are a drain on state revenues, according to a study released Tuesday by the University of Hawaii Economic Research Organization.

UHERO researchers estimate that installing a solar photovoltaic system on every owner-occupied single-family home statewide could theoretically cost the state as much as $1.4 billion in lost tax revenue based on new renewable energy tax credit rules that went into effect Jan. 1. Under the older, more generous rules, lost tax collections could have been as high as $2.1 billion. The study did not take into account technical constraints on PV installations, such as circuit capacity issues. Login for more...