“The solar industry in Arizona offers access to our state’s most recognized (and dare I say underutilized) strategic resource as well as high-paying, skilled construction and engineering professions,” reflected John Mitman, founder of Obodo Energy and board president of AriSEIA, in an op-ed published in the Arizona Capitol Times at the end of April.
Obodo Energy is a Phoenix-based company working to make clean energy more accessible to companies across all market sectors. “Working as a solar developer and contractor in our country’s sunniest state seems like a no-brainer, fool-proof small business model, and I’m grateful for the pro-business environment we foster in Arizona,” Mitman wrote. However, he elaborated, “We’re now witnessing an aggressive approach at the federal level to roll back the bipartisan energy tax credit legislation that continues to fuel economic development and job opportunities in our state while improving access to cost-saving technology such as solar and energy storage.”
Photo Courtesy Obodo Energy
Mitman went on to cite the benefits of the tax credits for Arizona, which have enabled the state to rank fourth in total installed solar capacity, according to the Solar Energy Industries Association (SEIA). Furthermore, they have helped over 50 new energy manufacturers in Arizona since 2022 to invest nearly $1.46 billion in the state’s energy and transportation sectors, according to Energy Innovation. “In my professional capacity, I’ve successfully deployed more than 250 school solar projects that have saved our public education sector more than $12 million since 2011,” Mittman added.
In his op-ed, Mitman went on to also explained the negative impact of rolling back these tax credits on Arizona. He pointed to Energy Innovation’s estimate that eliminating federal funding and incentives would cut Arizona’s GDP by $2.89 billion in 2030 and $1.8 billion in 2035. He also highlighted Rhodium Group’s findings that removing the tax credits could raise annual household electricity costs by nearly $500.
Mittman summarized, “Make no mistake, everyone will be impacted if Congress repeals the solar, storage and other energy tax credits. We will lose our freedom to hedge against rising monopoly utility costs through rooftop solar and the like, and, ironically, our utilities will lose access to their lowest cost new-build resource solar and storage systems which accounted for more than 90% of new utility-scale generation in 2024… Frankly, American taxpayers can’t afford to lose access to these energy tax credits.”
Mitman expressed his gratitude to U.S. Representative Juan Ciscomani (R-AZ-06), whose “actions reflect an understanding that pro-business tax policies have helped and continue to help Americans improve their livelihood here in Arizona and across the country… I applaud Representative Ciscomani for standing up against the baseless attempts to discredit the value that these energy tax credits bring to businesses and residents of Arizona.” He concluded, “Promoting energy independence through the solar and energy storage industry is as fiscally conservative and all-American as it gets.”
In another Arizona Capitol Times op-ed, Kimber Lanning, CEO of Local First Arizona, and Daniel Stellar, the state Director of The Nature Conservancy in Arizona, noted that in Arizona, these clean energy incentives also support 6,600 jobs, resulting in over $373 million in annual income, generating over $116 million in local, state, and federal tax revenue per year, and contributing more than $780 million in annual economic value, according to research conducted by BW Research and commissioned by The Nature Conservancy.
Lanning and Stellar wrote, “While our organizations each have distinct missions, we recognize the transformative impact the IRA’s clean energy tax credits have on Arizona families, local businesses, our economic momentum and making our communities healthier and more sustainable.” They added that “the tax credits provide financial incentives for people and businesses to support and develop clean energy. These tax credits spurred a massive growth in clean energy in Arizona and across the country.” Plus, “Thanks to these investments, Arizona has emerged as an epicenter of the clean economy.”.
Lanning and Stellar specifically pointed to Heritage Battery Recycling, an affiliate of the biggest battery recycling company on the continent, Cirba Solutions. In September 2022, Heritage announced its selection of Eloy for a new lithium-ion battery recycling plant, complementing its operations in Mesa.
Photo Courtesy Cirba Solutions
Lanning and Stellar added, “In addition to jobs and investment, the IRA tax credits have enjoyed broad support on both sides of the aisle in Congress, in part, because they protect American families from higher energy costs.” They highlighted a study by the Clean Energy Buyers Association, which found that by 2026, a repeal of the tax credits would raise average household electricity costs by approximately 7% nationally and by 10.6% in Arizona, and average business electricity costs by approximately 10% nationally and 14.7% in Arizona.
Photo Courtesy Clean Energy Buyers Association
Lanning and Stellar also acknowledged that Rep. Ciscomani was among the twenty-one Republicans who sent a letter to the Chairman of the House Ways and Means Committee, U.S. Representative Jason Smith (MO-8), advocating for clean energy tax credits. They wrote, “We especially want to thank U.S. Rep. Juan Ciscomani, a Republican in southeast Arizona’s 6th Congressional District, for his leadership. In the letter, Rep. Ciscomani and his colleagues urged ‘any proposed changes to the tax code be conducted in a targeted and pragmatic fashion’ that doesn’t undo current and future private-sector investment. We agree.”
They concluded, “Arizona is one of the most vibrant and beautiful states in the country. From our cactus-studded deserts to Ponderosa Pine forests, we live in a special place with exceptional biodiversity and communities that are thriving because of these investments. We hope you’ll join us in asking your representatives to safeguard these investments – for future affordability, to protect our forests, to keep people employed and to grow our economy.”
