AriSEIA Pens Op-Ed on the RPS Repeal and APS Rate Case

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Arizona Corporation Commission is making a big bet against solar energy

Last week, the Arizona Corporation Commission (ACC), which regulates most of the state’s utilities, voted to start the process to roll back Arizona’s energy efficiency and renewable energy standards. This is remarkably negative: to my knowledge, this would make us the first state to completely do away with these standards. As executive director of the Arizona Solar Energy Industries Association (AriSEIA), I am deeply concerned about what this signals to our industry in the sunniest state in the country. 

Climate is one of the state’s “Five Cs,” and the sun is Arizona’s greatest natural resource. To date, our state has done commendable work harnessing its power for the benefit of all Arizonans. We rank fifth in the nation for total installed solar capacity, and sixth for total solar jobs, with more than 8,000 workers employed in Arizona’s solar economy. 

Our state has installed enough solar panels to power more than 1 million homes, and our solar market is valued at $17.3 billion. Solar power provides 10% of Arizona’s electricity. Despite antagonism from our legislature and the ACC, Arizona Public Service (APS) is targeting 100% clean energy by 2050 and 65% clean energy by 2030.  Tucson Electric Power (TEP) has a goal of net zero by 2050, with an interim goal to reduce carbon emissions by 80% by 2035. 

Arizona’s current renewable energy target of 15% by 2025 is a far cry from Nevada’s and New Mexico’s goals of 50% by 2030. If the ACC is successful in repealing even this comparatively modest target, clean energy companies may stop doing business in the state, or companies that have made commitments to only use clean energy might think twice about setting up shop here. Rolling back our energy efficiency and renewable energy standards would send a clear message to these companies: take your business and your jobs elsewhere. 

To make matters worse, the ACC is poised to vote next week on a new fee for residential rooftop solar customers in APS territory. The new fee applies a 15% increase on rooftop solar customers in addition to the increase all customers will endure after next week’s vote on the APS rate case. This will result in approximately an additional $3- to $4-charge just to solar customers. APS did not ask for this increase; it was unilaterally proposed by the ACC.

We are facing an inflection point. We can continue to welcome investment from solar power and renewable energy more broadly, bringing jobs, cost savings, and environmental benefits across the state. Or we can follow the path the ACC is laying out for us and shun the economic benefits of the clean energy transition. 

If we go down that path, our neighboring states will out-compete us for clean energy investment. Nevada just made headlines for hosting the Super Bowl at Allegiant Stadium, the first NFL stadium to be powered by 100% renewable energy. We should be making headlines for innovation like this, instead of regressing. 

The ACC is playing political games they think will help them in November. However, if they were listening to the people of the state, they would know that three-fourths (74%) of Arizonans are supportive of more solar power. 

Unlike oil and gas, the sun and wind are unlimited natural resources. Not only are they  the least costly form of energy; they’re also going to get cheaper over time. In fact, the costs of solar and wind power in the state are projected to drop by 22% and 34%, respectively, over the next 30 years. Under the Inflation Reduction Act, Arizonans can get tax credits to cover 30% of the cost of installing solar panels.

Investing in renewable energy means energy independence and freedom from volatile oil and gas prices. It means cost savings on utility bills. Investing in clean energy also means new good-paying jobs for Arizonans—with more than 13,000 jobs and $10 billion in investment announced in our state since 2022. 

This is what we stand to lose if we turn our backs on clean energy. After the ACC releases its new draft rules, there will be a public comment period. Before that comment period begins, the public can also share their feelings on the new solar charge in the APS rate case by calling (602) 542-4251 or contacting the commissioners via email. Tell them to vote no on the new solar charge in Docket No. E-01345A-22-0144. Its passage will mean a dimmer future for all Arizonans.