The commission that regulates most Arizona utilities will consider changes to the way rooftop solar customers are compensated for excess power generation.
Currently, any excess power produced by homes with solar panels goes back to the grid and utility companies compensate customers a few cents per kilowatt. Utilities are allowed to lower the rates by up to 10% per year.
But KJZZreports the Arizona Corporation Commission now says those rates are higher than the utilities’ actual cost and other energy customers are essentially subsidizing solar users as a result.
The commission will reconsider the cap on annual rate reductions for new solar customers.
They note the rates won’t be changed for existing users.
However, solar energy advocates say the move will cause major instability in the industry and representatives for APS spoke against reopening solar compensation rates for debate.