There’s a lot going on for solar in Arizona. With the end of net metering, our southern Arizona utilities have each proposed different policies, rate structures, and fees. Here’s a summary of the current status and what to expect in the future:
Tucson Electric Power
Can I still install solar with net metering?
Yes, until the Arizona Corporation Commission decides TEP’s rate case, customers can use net metering, and will be grandfathered for twenty years.
What are TEP’s current rates for rooftop solar customers?
Customers with solar electric systems can choose the Residential Basic Plan. This plan includes a monthly service charge of $13.00. Energy charges range between 9.9-12.3¢ per kilowatt-hour, depending on your monthly usage, and the time of year. You’ll also pay some taxes and fees, plus a fee for the bidirectional meter needed for net metering. That meter fee is $2.05/month or a one-time cost of $142.95 for residential customers, or less for commercial customers.
Although TEP has been advertising various rate choices, including time-of-use rates and demand rates, these rates don’t pair well with rooftop solar.
Welcome to the solar coaster
Members of Sulphur Springs Valley Electric Cooperative (SSVEC) have a pretty good feeling of what the “solar coaster” is. Since April of 2015, when SSVEC abruptly proposed elimination of net metering, they’ve felt the tug of war between utility interests, the solar industry, and other stakeholders. We’re now in the home stretch of this long, involved process. Over the next 2-3 months, the Arizona Corporation Commission (ACC) will decide if they want there to be a minimally viable solar market within SSVEC’s service area, or if the current solar slowdown will come to a complete halt.
So how’d we get here? Since this post isn’t intended as a sleep aid, I won’t dig too deep. As noted above, SSVEC proposed gutting net metering over two years ago, and tried to make those changes effective about 30 days after submitting their proposal, before any review by the ACC occurred. This effectively stopped the solar market in their territory—in the next four months, we had only one customer choose to install solar with the possibility of the new rate structures hanging over their head.