Solar Lender Warns Government Leaders - Arizona Solar Industry May be in Peril

Sunset of federal incentives, increasing equipment costs, falling utility incentive, and regulatory barriers are cause for concern.

Gilbert, AZ, May 09, 2010 --( May 6, 2010, Michael Anable, Natural Resources Policy Advisor to Governor Jan Brewer, invited state leadership to meet with Larry Farris, President of Capital Group Ltd. The purpose of the meeting was to identify barriers to renewable energy finance and renewable energy in general throughout Arizona.

The meeting of department heads was held in the governors office in Phoenix and was attended by representatives from several agencies including finance and corporate securities, commerce, state lands, corporation commission, and the governors policy advisor.

Larry Farris, President of Capital Group Ltd., a leading clean energy lender expressed concern about the solar industry’s success including: sunset of federal 30% cash incentive, pending increasing equipment costs, recent reductions in utility incentives, and regulatory barriers.

Farris suggested that Arizona take immediate steps to increasing the Renewable Portfolio Standard to 30% by 2020 and 50% by 2030, include distributive energy requirements in the RPS, allow private power purchase agreements, pursue federal exemptions for local energy related securities offering, require non-revocable assignments of utility incentive payments, promote fairness in carbon credit purchases, and the adoption of a California styles property tax funding mechanism for clean energy and efficiency measures.

Expressing concern for Governor Brewers expressed solar goals, jobs, the environment, and energy costs escalations Farris stated, “If Arizona does not take action now to reduce barriers, enhance the RPS, and streamline funding issues we may likely see a significant contraction of the Arizona solar industry in 2011.”

Capital Group, Ltd.
Hunter Farris