Free enterprise is right approach for solar energy

One thing you can count on in Yuma - and much of the rest of the state - is that we will have lots of sunshine just about every day.

In fact, in our community's early history there was a hotel that promised free rooms to guests if there was no sunshine on the day they stayed there. I bet they didn't lose much money on that promotion.

Many in Arizona see the sunshine that dominates our state climate as a natural resource, not only from the viewpoint of tourism but as a potential source of energy - a source they believe is vastly underutilized.

That may be one reason why there seem to be a slew of solar energy related bills making their way through the Arizona Legislature this session. Some of the measures being considered that could favor solar power are:

- Establishing a property tax break for power plants generating two or more megawatts of electricity from renewable energy sources, like solar.

- Giving a property tax break for manufacturers of renewable energy equipment.

- Standardizing building permit fees for solar construction projects to ensure they are not excessive.

- Providing state grants for solar projects at the state's public schools.

- Mandating energy efficiency standards for buildings that would promote use of solar energy.

- Giving tax breaks through the year 2040 for renewable energy equipment.

One of the reasons for all this activity is a desire to attract solar power businesses to Arizona and meet competition for these businesses from other states, like California, that are creating similar "lures."

While the idea of using solar energy is an attractive prospect in our state, what is unattractive about these proposals is the common theme of coercion and taxpayer-supported incentives rather than a reliance on choice.

In order for solar power to truly be successful, it must stand on its own merits. Consumers must want it because they see its value to them, just like any other marketplace option.

Those who want to prop up solar power with incentives or force its acceptance will argue that this is necessary because solar power equipment is currently too expensive. It must be more widely used if the price is to drop to an affordable level.

It is true there will need to be more acceptance for solar power to become commonplace, but that needs to be a result of the free market, not government intervention.

In fact, public incentives are likely to discourage the solar industry from developing less costly technology that would be accepted by consumers. Why bother when they know the taxpayers will help subsidize their more costly equipment?

The reality is that there are already market forces at work which are likely to encourage more affordable alternative energy sources, including solar power.

One is the growing demand for oil as Third World nations develop, which creates an oil supply shortage. That is contributing to record high prices for petroleum, which will make alternative energy sources more attractive from a cost standpoint.

The volatility of oil supply and pricing will also encourage the desire for more energy stability and independence, which would be available with use of alternative energy sources - and solar power certainly is a very viable candidate.

Given time, alternative energy sources will find a more prominent place through the marketplace rather than through coercion or government subsidies.

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Terry Ross is editor of The Sun. E-mail him at tross@yumasun.com or phone him at 539-6870.