Arizona has long been known as a business-friendly state, but inconsistent energy policies and regulatory uncertainty are putting that reputation at risk. United's Michael Barrio authored an opinion piece for the Arizona Capitol Times, urging decisionmakers to restore investor confidence and secure long-term economic growth by advancing policies that support clean energy investment and keep Arizona competitive.
Arizona has long prided itself on being a state where businesses can thrive. But lately, we’re seeing more uncertainty about investing here. Kore Power decided earlier this year to cancel its long-planned $1.2 billion battery storage plant in Buckeye. Last year, Arizona slipped from 5th to 8th nationally in residential solar installations. These are not isolated incidents, but rather a stark warning sign: inconsistent market signals and unpredictable regulatory hurdles are making Arizona a more challenging place for clean energy to invest. When businesses don’t know what to expect, they hesitate, and this uncertainty ultimately leads to fewer jobs, less economic opportunities and fewer tools to lower energy costs for Arizonans.
As lawmakers finish up their work this session, Arizona is at a crossroads. We can either continue down a path marked by mixed signals and missed opportunities, or we can recommit to policies that are friendly to markets, welcome innovation and support long-term economic growth.
It’s not all bad news. Gov. Katie Hobbs vetoed several harmful bills this year that would have stalled clean energy progress, driven up electricity costs, created regulatory uncertainty and jeopardized Arizona’s ability to attract and retain business investment. These vetoes were a big win toward restoring investor and business confidence.
Another encouraging step was the reinstatement of the state’s Efficiency Arizona program. This program, supported by $153 million from the Inflation Reduction Act, will help residents upgrade to energy-efficient appliances: lowering energy costs, reducing peak demand and making the grid more reliable. This will not only benefit Arizona families, but also create jobs for local contractors and electricians, stimulating small businesses. Programs like these align the state’s policies with the needs of its economy.
But while these are signs of progress, they’re not enough. To stay competitive and ensure long-term growth, Arizona must do more than maintain the status quo – we have to lead.
As an example, Arizona should pass legislation that requires utility companies to invest in advanced grid technologies. Our electric grid is outdated and struggles to meet growing energy demand, and these technologies help more electricity flow through existing transmission lines, lowering electricity costs and improving grid reliability. With smart planning and investment, we can connect cheaper energy to the grid without having to build costly new infrastructure.
Policymakers should also modernize how we plan and build energy infrastructure, through updated transmission planning and streamlined permitting for clean energy projects, and support local, customer-owned energy resources like battery storage and rooftop solar. Policies like these would not only strengthen reliability and control costs but also position Arizona as a leader, sending a clear signal that the state is serious about competing in the modern economy and embracing forward-looking, investment-friendly policies.
With the right policies, Arizona can secure its energy future, supporting local jobs and building a grid ready to power the next decade of growth.
But to remain competitive, we can’t afford hesitation. With more than 300 days of sunshine a year and an energy-hungry economy ready to grow, we should be leading in the development of clean, low-cost energy, not standing still while other states surge ahead. Investing in home-grown, abundant and low-cost sources of energy should be a top priority for the state.
Arizona’s future is on the line. We can either lean into competition, reliability and innovation, or double down on monopoly-era rules that stifle progress and raise costs. Businesses are watching. Families are watching. And if Arizona fails to modernize, we risk falling behind.
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