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Are solar tax incentive loopholes illegitimately funding research?

30 June 2008 | Market Watch: News From Around The Web | Source: designnews.com

While in Tempe, Arizona visiting Arizona Student University (ASU), I noted in the local media that ASU has contracted to build the nation's largest roof-top solar array: 2 megawatts-peak. The East Valley Tribune reported "ASU to create largest university solar project" while the Arizona Republic reported "ASU plans big rooftop solar grid".

According to officials quoted in these articles, ASU contracted three companies, Honeywell Building Solutions, Independent Energy Group and SolEquity, to install the solar system, which will meet seven percent of ASU's energy needs.

Instead of paying enormous up-front capital costs, ASU will pay the installation companies a fixed electricity rate; slightly lower than what it now pays the utility. This type of financing could be a win-win for the university and the companies: ASU gets low, fixed utility rates and the installation triad gets a guaranteed income stream.
 

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