ACC Votes to Lower Solar Export Rate, Undervaluing Solar and Failing to Support Arizona’s Growing Energy Needs

The Arizona Corporation Commission (ACC) voted today to decrease the solar export rate by 10%. Customers of Arizona Public Service (APS) and Unisource  Energy Service (UNS) who install solar will now receive just 5.5 cents per kilowatt-hour for electricity they export to the grid. The ACC will consider a similar decrease for Tucson Electric Power (TEP) customers next month.

The ACC’s decision undervalues the electricity solar provides, discouraging solar adoption during a time of growing energy demand in the state. Energy costs are on the rise, and installing rooftop solar is one of the few ways Arizona households can take control of their energy bills. Unfortunately, by approving the maximum reduction to the solar export rate, the ACC’s decision will make rooftop solar harder to pencil out for families across the state. During summer evening hours, when there is a high demand for electricity, households served by APS pay 34 cents per kilowatt-hour of electricity and UNS customers pay 19 cents, but families with solar who export power to the grid are compensated at the solar export rate of just 5.5 cents for electricity they supply to the grid.

Vote Solar, SUN, and AriSEIA issued the following statements: 

Vote Solar’s Senior West Regulatory Director, Kate Bowman: 
“As Arizona’s energy demand continues to grow, the ACC should be turning to affordable clean energy solutions like solar, not keeping them out of reach for communities across the state. We are disappointed by the ACC’s decision to discourage solar adoption, keeping meaningful relief for customers and communities out of reach while missing an opportunity to build a more resilient and affordable energy system for Arizona.” 

SUN’s Arizona Program Director, Adrian Keller:
“By continuing to approve lowered export rates that undervalue distributed energy as a resource, this Commission is sending a signal to consumers and the industry that Arizona is not a friendly place for individuals and businesses to invest in solar. In the sunniest state in the nation, this decision by the ACC is yet another self-inflicted wound that will result in less solar coming online precisely at a time when our state would most benefit from an increased rollout of new distributed resources like solar that strengthen our grid.”

AriSEIA’s Executive Director, Autumn Johnson:
“There are really only two ways to save money on your electric bill. You can adopt energy efficiency and demand response measures or you can install rooftop solar and storage. The Commission has taken numerous actions recently to undermine both options at a time of rising power bills; today is one such example. Utility rates are rising and while the Commission is supposed to protect you from monopoly utilities, instead it is constraining your options to mitigate those increases.”