Advertisement

Financial study projects lower government revenues from solar initiative

 
Published May 11, 2015

State and local government revenues from taxes and fees would decrease if a ballot initiative to open up Florida's solar market wins approval, though the specific impact remains unclear, according to a financial review of the proposal.

The Financial Impact Estimating Conference on Thursday submitted its 18-page report to state Attorney General Pam Bondi, who will forward the review to the Florida Supreme Court. The report noted that state and local governments also would face additional costs from the initiative, though those expenses "will likely be minimal and partially offset by fees."

The impact review also found that some local governments think the ballot initiative could lead to the end of some franchise agreements between municipalities and utility companies or force them to renegotiate deals because of the potential impact an expansion of rooftop solar might have.

In January, backers of broader use of solar energy in Florida launched a petition for the 2016 ballot that would allow those who generate electricity from the sun to sell the power directly to other consumers.

If the measure passes, solar proponents argue that it would open up Florida's solar market, which has largely stagnated for years. The measure would allow business or property owners to produce up to 2 megawatts of solar power and then sell that power directly to others, such as tenants, without having to go through a utility.

Under current Florida law, only utilities can sell electricity directly to consumers.

The ballot initiative now awaits review by the high court, which must approve the language in the petition. The initiative's sponsor, Floridians for Solar Choice, must collect 683,149 signatures by Feb. 1 to make it onto the 2016 ballot. The group has 86,735 certified signatures.