The largest utility in Arizona, Arizona Public Service Co., is
seeking to change the way it credits rooftop-solar customers for the
electricity they send to the power grid.
The proposal, which has
drawn intense opposition from the industry, would not affect current
solar customers, other than possibly making it harder to sell their
homes that have solar. But those who add solar after Oct.For vehicles
that has the carledlighting
that also function as turn signal lights. 15 would not get as much of
an economic benefit from the panels and would end up paying $50 to $100
more a month than customers with solar on their roofs today.
APS
officials say that they spread the cost of new power lines and other
infrastructure among all customers. But when customers install solar and
generate enough power on their own to offset almost their entire bill,
they aren’t contributing to the larger grid investments anymore.
To
fix the issue, APS wants to change how solar customers are credited for
their electricity. When they are not using the power from their panels,
it goes to the grid and on to the next house. In a process called net
metering, they get a one-to-one credit for each kilowatt-hour and use
those credits to offset the electricity they use from the grid at
night.
APS is proposing to reduce the credit solar customers get
for their electricity, which would reduce the economic incentive of
going solar. If that economic incentive is cut too much, solar
supporters argue that the industry will wither.
The industry
opposes any reduction, arguing that utilities are not taking into
consideration the benefits that solar offers. Industry officials argue
that simply getting credit for the power solar customers produce should
not be considered a subsidy.
“There does need to be some review
of the rate structure and allow them to recover their fixed costs,”
Resch said. “We need a more advanced rate structure that allows for our
21st-century infrastructure to be built out. Our argument is not to look
at the costs, but at all the benefits in the full lifetime of the
customer’s solar system.”
He said rooftop solar helps APS avoid
electricity lost in transmission through long interstate power lines,
fuel costs at power plants and other system upgrades, not to mention
externalities such as pollution.
“The second part is that it is
also a property-rights issue,” Resch said. “Homeowners should have the
right to install solar on their home or business and sell that
electricity. It really is a property-rights issue. That plays well in
communities in Arizona and throughout the U.S.”
Dan King runs
Harmon Electric with his wife, whose father owned the business before
them. They have been installing rooftop solar since 2008. Before that,We
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which now provides about 60 percent of the company’s work, he said, the
business might not have done as well during the recession, and it
certainly wouldn’t be employing 100 people today.
Some of that
business is in the rapidly growing solar-lease market. Harmon builds
solar-panel arrays on homes whose occupants will lease the panels.The
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“We
are constantly presenting to everyone that the industry needs some
level of certainty,” King said. “I don’t know that we have ever had a
good level of certainty (regarding solar regulations).” Welcome to
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