From the Yellow Sheet Report
APS executives met with a small group of reporters this morning to reveal details of the proposal it will present to the Corporation Commission tomorrow, which could significantly alter the incentives to Arizona rooftop solar users.
APS proposes to lessen the value of the energy produced by rooftop solar users that is used to offset electric bills and offers the commission two ways to do that. APS argues the current scheme allows solar rooftop users to avoid infrastructure investment costs, which are being pushed on to non-solar customers.
Under the first proposed option, future solar customers would either use a “net metering” system that pays only 6-10¢ per kilowatt hour for the energy that customers transfer to APS’s system, down from the roughly 15.5¢ per kilowatt hour paid now. This option also maintains customers’ ability to lower electricity consumption.
The range varies because the price would be calculated according to users’ peak demand.
APS’s second option is to scrap the net metering system altogether, and instead start a new program, where a flat rate of about 4¢ per kilowatt hour is paid for all the electricity that solar panels produce and the electricity consumption would essentially come from APS at a normal rate. For the average energy bill, the difference between what APS is proposing and the current system would be stark. Where a solar customer under the current system can save around 70 percent off of their bill, future customers would see a savings closer to 20 – 40 percent under the same solar panel set up.
Current solar customers and their pricing arrangements would be grandfathered into the proposed system.
Both of APS’s proposals would be coupled with an increase in the upfront incentive paid to customers that adopt solar panel use. But APS said they will not suggest what that upfront incentive change should be, explaining it would need to vary over time and it should be negotiated with solar companies that typically offer specific lease agreements with customers.
APS officials said they want those companies to still be able to do business in Arizona.
Related: APS to bring two net metering plans to ACC
