Arizona regulators have voted to dramatically change the rates for rooftop solar customers hooked up to the grid.
The decision comes after two days of testimony and public comment. The 4 to 1 vote by the Arizona Corporation Commission could signal a key turning point in the long running debate between utilities and the solar industry.
The commission voted to significantly reduce how much new solar customers will be compensated for their excess power, known as net-metering. Existing customers, however, will be grandfathered for 20 years.
For the pending rate cases, such as Arizona Public Service and Tucson Electric Power, the value of rooftop solar will be based on what utilities can purchase from large scale solar farms on the wholesale market, rather than at the retail rate as had been the case.
For future cases, regulators will be able to use several different methodologies for determining the value of solar.
APS applauded the decision because it will deal with the growing cost shift onto non-solar customers.
Meanwhile, the solar industry opposed several aspects of the ruling, saying it didn’t take into consideration all the long-term benefits.
