By Ryan Randazzo | The Arizona Republic
Arizona Public Service Co. and the solar industry have published conflicting studies estimating the value of rooftop solar panels, foreshadowing a debate that will determine the future of the budding solar industry in Arizona.
The APS report says that people with rooftop solar are being overpaid for the excess electricity they generate, which is directed to the power grid when they are not using it. The solar-industry report said those customers are being underpaid and that their solar panels provide value to the utility by helping APS avoid expenses like new power plants.
The two sides are making their arguments as APS prepares to ask regulators in July for a reduction in its credits. The five Arizona Corporation Commissioners will decide whether to keep or alter the payments.
The utility, like many others, gives customers a one-to-one credit for each kilowatt-hour of electricity their solar panels generate that gets sent back to the power grid. The policy is called net metering because customers are billed for their net usage.
If their solar panels generate excess electricity in the daytime, their meters run backward. Then at sunset, when their panels stop making electricity and they are using electricity from APS, the meters run forward again, effectively spending the credits they accumulated during the day. No money actually exchanges hands unless a customer has excess credits at the end of the year.
Related: Arizona Public Service totally thinks we’re not smart (and now there’s a song that says so)
If you’d like to discuss energy issues, contact Court Rich, Co-Chair of Rose Law Group’s Renewable Energy Department at crich@roselawgroup.com
