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Potential changes to solar energy compensation

Posted at 6:43 PM, Oct 11, 2023
and last updated 2023-10-12 07:10:49-04

PHOENIX — A spotlight on solar.

In a 3-2 vote, the Arizona Corporation Commission (ACC) has decided to move forward with discussions on updating how solar customers are compensated, for the extra power they're generating.

"That's not fair," said Sandy Bahr.

Bahr, a solar customer, did not hold back at the Arizona Corporation Commission meeting.

"I don't want to see the Commission go back on an agreement that helps us know what we'll get paid for the electricity we generate for the electric grid," she added.

Bahr is talking about an agreement made back in 2017 called the Value of Solar. That 2017 decision set the rate that almost everyone in this state receives when they generate more solar power than they can use and sell the rest back to their utility.

To clarify, the ACC says if you have bought solar since that time, you have an export rate that is locked in for a 10-year period.

Though, your rate after that is unclear.

This decision does not apply to utilities such as Salt River Project (SRP), which aren't regulated by the commission.

"We're already not getting a great deal, but they want to make it an even worse deal," said Bahr.

Though, she isn't the only one who feels this way.

"Opening up this value of solar debate, is not just a solar idea, but it could negatively impact thousands of jobs in Arizona," said Jason Gallagher.

Jason Gallagher is the Chief Operating Officer at Fusion Power, a Chandler-based solar company.

He says, a change wouldn't just be bad news for the more than 200,000 people in Arizona that already have rooftop solar, but that it's also bad news for anyone who hopes to someday have it.

"And the reason for that is that solar has to make sense. And solar makes sense. We live in Arizona. We have plenty of sunlight and we use a lot of electricity. The only thing that prevents solar from making sense is when our leaders side with electricity companies and allow them to further cut the price that they have to buy electricity from solar customers," Gallagher told ABC15.

However, not everyone present felt discussions to reevaluate how solar customers are compensated for the extra power they're generating should be closed.

"This industry is just set up to fail and I encourage you to reopen the case," said a woman during the meeting.

While two commissioners wanted to halt further discussions, three felt the cost structure deserved to be reviewed.

Again, the ACC chair says no one with existing solar or existing solar businesses would be at risk. At least, for now.

Co-ops would not be included in any changes or discussions.