Arizona has been a fast growing solar market in the United States in past several years. On February 2013, Arizona’s solar incentive program was significantly reduced and many people wondered what the impact of these cuts would be. From an economic perspective, the elimination of incentives will probably reduce the ability of the higher cost players to continue making profits while also reducing the attractiveness of solar projects. However, some people argue that as equipment prices continue to fall and as high-cost players leave the industry or become more competitive, the demand for solar is likely to remain strong in Arizona over the next five years. While the incentive elimination has begun a big uncertainty in market, some people are still positive about future of solar market in Arizona. It might have been too soon to remove the incentive and the industry is not yet ready to be left on its own.
This article focuses on an interesting topic and discusses how upper level decisions can make many uncertainties in the lower levels. For example there are a large number of solar companies in the area who might have invested a lot on solar project and this incentive elimination can potentially reduce their future profits. What I can learn from this article and this topic is to consider different scenarios in long-term planning. For instance, it is clear that solar companies that have only relied on the incentives cannot stay in market for long. However, those who have considered this situation in early planning are more likely to survive.
I believe this article talks about a problem crated for the solar companies that this course would enable us to find robust solutions for similar situations in our future career. Further, the article talks about uncertainties in the market and I think this can also be better understood at the end of semester when we are done with this course.