Solar flameout: Demand charges cause applications to plummet

Screen Shot 2016-02-19 at 6.39.56 AMBy Rachel Leingang | Arizona Capitol Times

One year after Salt River Project added an unprecedented rooftop solar charge, solar applications in the utility’s territory are on life support.

Applications were down 96 percent in 2015 when compared to 2014, according to numbers provided by SRP. The utility received 7,634 applications for solar in 2014, and just 318 applications last year.

SRP instituted a demand charge in February 2015 on solar customers, a complicated rate design that diverges from how energy bills are normally assessed. Under a demand charge, customers pay for power based on the peak level of energy they use throughout the month.

Continued:

Related: New solar bill, SB1417, will harm small business

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