Green Energy: Tax it or Don't Tax it?

[CalGun]

When someone puts a solar system in place and uses the power they avoid the utility taxes applied by many cities, counties and perhaps some states. Utility companies have to run power to the house, but no longer sell them any usage and may only collect a small usage fee for the connection. Should those with solar power or independent energy production at their home pay the same utility user tax as someone that buys it on the grid? What about fuel? I can produce bio diesel and use it in my truck, and by doing so I don't have to pay any gasoline taxes - is that fair? Then on the other side of the equation we want green energy, we also want more energy, and isn't avoiding taxes a good means to producing both green and more energy?

 

[Canell]

Yeah, but when one has excess electricity, it goes straight to the neighbours with NO LOSS and the profit goes to the utility company. I think it may compensate what you point out.
As for bio-diesel, I think one can produce as much as one wants for own consumption, but selling it to others would be another story.

 

[clownboy]

I think they should bear the line taxes IF and only if they are going to be using that line (either to sell back or buy supplimental). The utilities place the line, true, but you don't have to connect it.

 

[clownboy]

Yeah, but when one has excess electricity, it goes straight to the neighbours with NO LOSS and the profit goes to the utility company. I think it may compensate what you point out.
As for bio-diesel, I think one can produce as much as one wants for own consumption, but selling it to others would be another story.

I don't believe that's true at all (the bolded part).

 

[Canell]

I don't believe that's true at all (the bolded part).

Well, there will always be some loss, but you can't compare the loss of 100 miles delivery with 100 feet delivery.

 

[The German]

mhmmmmm...

Concerning the need for a change in the energy sector to better resources, I guess it should be agreed at least at which point taxes should be payed.

 

[clownboy]

Well, there will always be some loss, but you can't compare the loss of 100 miles delivery with 100 feet delivery.

I don't believe that part is accurate either. You're not wired directly to your neighbor's house, or shouldn't be at least.

 

[Canell]

I don't believe that part is accurate either. You're not wired directly to your neighbor's house, or shouldn't be at least.

How come? You are wired to the neighbour through the grid. It's not a straight line but it is "directly".

 

[soot]

When someone puts a solar system in place and uses the power they avoid the utility taxes applied by many cities, counties and perhaps some states. Utility companies have to run power to the house, but no longer sell them any usage and may only collect a small usage fee for the connection. Should those with solar power or independent energy production at their home pay the same utility user tax as someone that buys it on the grid? What about fuel? I can produce bio diesel and use it in my truck, and by doing so I don't have to pay any gasoline taxes - is that fair? Then on the other side of the equation we want green energy, we also want more energy, and isn't avoiding taxes a good means to producing both green and more energy?

If the home remains connected to the grid, such that it can "sell" power back to the grid (in the form of renewable energy credits - mandated by many states) and draw power off of the grid in times of need, then yes, they should pay the tax. If they disconnect completely from the grid then no, they shouldn't pay the tax.

To the extent that gas taxes are used to fund the construction and maintenance of common roadways (such as the federal gas tax is deposited in the Highway Trust Fund) then yes, a renewable energy motorist should be subjected to the same tax burden as anyone driving a traditional gasoline powered engine.

This is actually becoming something of an issue, from what I understand, with the increasing popularity and ubiquity of hybrid, electric, and bio-fuel vehicles. Most highway funds are on the verge of insolvency as it is and the steadily decreasing tax revenue due to renewable energy vehicles is really putting the hurt on them.

I'd expect to see some kind of toll or mileage tax or usage tax proposed to augment the gas tax in the not too distant future (if it isn't happening already in places).

 

[Gipper]

As of right now, I would not tax it. This is because it is still a fledgeling and unperfected source of energy that needs more research, and a tax deferment could help maximize positive externalities.

People should not be taxed for using clean energy, and companies should not be taxed for providing it.

 

[Helix]

i'd do it like internet sales taxes : don't tax it until the tech is well established and market share is much greater.

first, there's a big start up R&D cost. add a tax and it becomes even less profitable. right now we are subsidizing it to give it a foothold, which i approve of. if we reach a day when most energy is renewable, then that's a time to look at getting rid of the subsidies and levying a tax.