APS Plan Offers Sustainable, Fair Solar Future for Arizonans

July 11, 2013

APS will submit a plan July 12 at the Arizona Corporation Commission (ACC) that, if adopted, will foster a sustainable, fair and broad-based solar energy future for Arizona.

With as much sunshine as we enjoy in Arizona, we believe solar power can and should have a bright and long future in our state. We see a future of rapidly increasing adoption of solar power, where individual customers can “go solar” by putting solar panels on their homes and businesses.

Our responsibility is to make sure the electricity grid is in place to support that goal. Today’s rooftop solar customers benefit from a reliable grid at all times – at night, in the rain, or when it is so hot they need more power to run their air conditioners. These solar customers also use the grid to sell power back into the system when they have excess. The grid helps ensure that they have the power they need, whenever they need it.

As more people install solar on their homes, it becomes more important that everyone who uses the grid helps cover the cost of keeping it operating at all times. Under current rules, rooftop solar customers benefit from a reliable grid, but pay little to nothing for their use of it.

After a series of public meetings, we are submitting a recommendation to the Arizona Corporation Commission that would update the current rules so that future rooftop solar customers get compensated at a fair price for the power they generate, and also pay a fair price for their use of the grid.

Existing Solar Customers
The changes in the plan apply going forward. APS proposes current and immediately pending rooftop solar customers would be grandfathered under the current rules for 20 years.

Future Solar Customers
APS‘s proposal provides the ACC with two options, either of which would ensure rooftop solar customers get fair credit for their solar energy and pay their fair share for their use of the grid.

  • Net Metering Option - Future solar customers would be compensated through net metering and would pay a charge for their use of the grid, which previously they used essentially free.
  • Bill Credit Option - Net metering would be replaced by a bill credit given to solar customers for the energy they generate, at a price set by the ACC and based on the rates APS pays other generators for power.
Upfront Cash Incentives
APS recommends an increase in the upfront cash incentive for customers who want the choice of rooftop solar.

View the proposal filed at the ACC.