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Deadline for Solar Net Metering Extended for TEP Customers

Net metering will soon disappear for Tucson Electric Power customers, but the deadline continues to be extended incrementally. Hearings before the Arizona Corporation Commission’s administrative law judge were completed last fall, but we are still waiting for Judge Rodda to write her recommendations, which will appear on the docket, and then go to our elected Commissioners for action at an open meeting. Originally, we expected that recommendation to come early in 2018, and the Commission to make their decision in February or March, but that didn’t happen.

The ACC’s Rules of Practice and Procedure tell us there must be ten days notice before a hearing (see R14-3-109A). There must also be a ten-day opportunity for parties—such as TEP, ACC staff, and solar advocates—to file exceptions to the Judge Rodda’s recommended order (see R14-3-110B). These deadlines mean that TEP’s net metering proposals can’t be considered at the ACC’s March Open Meeting, which is scheduled for March 13th-14th.

The ACC’s open meeting calendar shows their next open meeting is scheduled for April 10th-11th. This means that net metering will be available for TEP customers at least until that date. Any TEP customer who submits a complete interconnection application to TEP before April 10th will have net metering grandfathered for twenty years from the date of interconnection, but they must install their system within 180 days of that application. For customers who choose to upgrade an existing system, that twenty-year period starts from the original interconnection date.

If you are interested in solar, or know someone who is, we’d encourage you to get in touch with Net Zero Solar or other reputable local installers very soon. Read More

TEP Rate Case and Net Metering Nearing End

It’s been a long road. Utilities like Tucson Electric Power have been trying to reduce competition from rooftop solar for many years, but we can trace this rate case back to March of 2015, when TEP put forth a proposal to gut net metering, an important policy that allows a one-to-one credit for any “extra” energy from a solar electric system that’s sent to TEP. (For more info on how energy flows in a grid-connected solar electric system, see our infographic).

This net metered solar electric system in Oro Valley, Arizona is connected to the TEP grid.

In that case, TEP proposed that customers should be credited about 55% of the retail electric rate for energy sent back to their grid, which would have upended the economics of rooftop solar. More perniciously, they also proposed an arbitrary date for this change of June 1st, 2015 in their application, without any approval by the Arizona Corporation Commission. This was in contrast to the ACC’s established precedent against retroactive rates, and no reasonable outside observer thought it likely that the ACC would approve that date. However, it cast a long shadow on the solar market. We objected strenuously. Many customers were concerned that they would not receive net metering if they installed rooftop solar. At Net Zero Solar, we had to both lay off co-workers and take pay cuts.

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Trump’s Solar Tariffs

On January 22nd, President Trump imposed a 30% tariff on most imported solar modules. The Solar Energy Industries Association estimates these tariffs will result in the loss of 23,000 jobs here in the United States! SEIA’s statement provides a good short background on the case, and the result of this ill-advised action. To dig into the details, check out this podcast from Greentech Media.

At Net Zero Solar, we’re used to dealing with the challenges of changing markets and outside forces that don’t want clean energy or competition, so we’ll do our best to adjust. We purchased a limited number of solar modules before the tariff was implemented to reduce the impact on our customers. This will be especially helpful for those who choose to go solar ASAP while net metering is still available with TEP (likely through mid-March). In the longer term, we do expect that we will have to increase our prices due to tariff.

Last week, Net Zero Solar shared perspective on the tariff in two interviews with local news. Check them out below, and share your thoughts and questions in the comments!

Net Zero Solar’s Chad Waits on News 4 Tucson – KVOA with Zack Briggs:

http://www.kvoa.com/story/37344125/president-donald-trump-implements-tariffs-on-solar-panels.

Net Zero Solar’s Louis Woofenden and other local installers share their thoughts on the solar module tariff with Tucson News Now‘s Bud Foster:

http://www.tucsonnewsnow.com/story/37343909/solar-industry-in-flux-after-presidents-tariff.

Lhasha & Russell Love Rooftop Solar

Russell Lowes and Lhasha Tizer have worked tirelessly for many years to fight for sustainable energy and contribute to the Tucson community. After taking steps to reduce the energy use of their home, they installed solar in March of 2013. Here is their solar story, along with their thoughts on the future of energy in Tucson.

You can read more of Russell’s thoughts on solar and energy storage here.

Are you interested in solar, or know someone who is? Did you know that TEP customers can still lock in net metering for 20 years, if they make the decision to install soon? Get in touch with us for details, 520-207-4053, or www.netzerosolar.net.

Sonya Chooses Rooftop Solar

Sonya installed solar on both her own home, and her rental property! See why she believes rooftop solar should be a big part of Tucson’s energy future.

James Loves Rooftop Solar

James “Cosmo” Cramer shares why he loves rooftop solar, and why he thinks it’s important for Tucson!

Rate Case Rundown

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.
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How Does Net Metering Work With My Electric Bill?

Here is how net metering works with your electric bill. We’ll be sharing more about how billing will work for systems without net metering in the future. TEP and SSVEC customers can still choose net metering. APS customers will not be able to use net metering starting the end of this month, and Trico customers are already on an export rate system.

What Do SSVEC’s Proposals Mean for 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.
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