In the APS rate hike case, earlier this year, the Arizona Corporation Commission’s 4-1 Republican majority gave their approval to the introduction of a new charge specifically for owners of rooftop solar.
Arizona regulators are set to vote on Tuesday to decide whether to keep a new fee for APS rooftop solar owners. The “grid access charge” has been deemed fair by an administrative law judge, but critics argue that APS has not presented enough evidence to justify it.
One issue that has been a source of controversy in the solar industry is the concept of a solar “grid access fee.” This fee is charged to homeowners who have installed solar panels on their property and are still connected to the electrical grid. The argument for this fee is that solar homeowners still benefit from the grid, such as using it for backup power or selling excess energy back to the utility company. However, opponents argue that the fee is unfair and discourages people from adopting solar energy. They believe that solar homeowners should be rewarded for their contribution to the grid and the environment.
Solar “grid access fee”
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Earlier this year, the Arizona Corporation Commission, with its 4-1 majority of Republicans, gave their approval for the implementation of a new charge for rooftop solar owners. This decision was made during the APS rate hike case. The main reason behind this fee, according to the for-profit utility, is to ensure that solar owners are contributing their fair share.
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Renewable energy groups, the Arizona Attorney General, and numerous consumers have raised concerns about the discriminatory nature of the fee, which targets owners of rooftop solar.
According to APS, the average solar home pays a fee of around 2-3 dollars per month. APS also reports that there are over 182,000 homeowners with rooftop solar.
According to the sustainability nonprofit Vote Solar Action Fund, the imposition of this fee conveys a misguided message to homeowners in Arizona who are contemplating the adoption of solar energy.
Kate Bowman, the Regulatory Director of the organization, expressed her concern about the rising energy costs and higher interest rates affecting the economics of installing rooftop solar. She emphasized that these factors are chipping away at the feasibility of rooftop solar installations. Additionally, Bowman raised concerns about the message being sent that the rules of the game can be changed unexpectedly.
According to a recent study conducted by APS, it has been alleged that solar customers were paying less for their energy consumption.
APS study alleges solar customers were paying less
The judge overseeing APS’s rate case hearing concluded that customers with rooftop solar were paying less than what it cost APS to serve them.
Jill Hanks, spokesperson for APS, expressed concerns about the impact of these costs being shifted to customers without solar. According to Hanks, this practice ultimately leads to increased bills for those customers.
According to Bowman, the “Cost of Service” study is incorrect.
Bowman disagreed with the claim that solar customers are not paying their fair share, stating that the study conducted by APS, which supports this claim, is not accurate. He expressed disappointment that the commission did not thoroughly review the study.
According to APS, the study did consider the “capacity value” associated with rooftop solar in a legal filing. APS argues that the approach taken by the COSS study, which does not credit exports, is justified due to the intermittent nature of rooftop solar export production.
APS has stated that it is necessary for them to maintain a full grid infrastructure and compensate for resource constraints in order to serve customers. This is due to the fact that rooftop solar output decreases during cloudy conditions or when the sun sets.
The Attorney General argues that the solar charge is unconstitutional.
Attorney General: Solar charge is unconstitutional
The Attorney General’s Office asserts that APS benefits from solar customers in ways that are not accounted for in the study. Solar energy generated from rooftop panels effectively lowers the overall demand on the grid during peak summer periods. Additionally, rooftop solar systems contribute power to the grid. Unlike APS-built energy plants, which are funded by consumers through the ratemaking process, homeowners personally finance their rooftop solar systems.
According to economist Richard McCann, the Arizona Attorney General’s Office stated that the Commission neglected to assess the allocation of revenues among customer classes and the design of rates.
According to McCann, APS failed to provide sufficient evidence to demonstrate that the expense of serving rooftop solar customers is significantly different from the expense of serving other customers.
According to McCann, APS has put forward a case that relies on hypothetical or “phantom” costs, without any evidence of actual incurred costs.
APS offers a range of resources to customers interested in solar energy.
APS: We provide resources to customers for solar
According to Hanks, alleging that the fee discourages rooftop solar investments is completely false.
“The Grid Access Charge ensures fairness by preventing solar customers from shifting their costs onto non-solar customers,” explained Hanks.
“We are here to assist customers who are passionate about preserving the environment and cutting down on their energy expenses by installing their own behind-the-meter technologies.”