Arizonans Using Solar Power Rally for Just Buyback Rates with Corporation Commission

In a pivotal meeting, the Arizona Corporation Commission convened and, with a narrow 3-2 vote, set in motion a review of the state’s buyback rates for solar rooftop energy. These incentives are crucial for users who generate surplus energy through solar panels; they can then feed this excess power back into the grid and receive credits on their energy bills.

The backdrop to this decision dates back to 2017 when the commission implemented a policy allowing utility companies to gradually reduce the credits allocated to solar homeowners. This policy stipulated a 10% reduction in credits each year for a period of ten years. As the meeting approached, concerns began to emerge among hundreds of residents, fearing that the commission intended to make more substantial cuts to these incentives, which could impact current solar users.

However, one commissioner clarified that the proposed changes would not affect current solar customers immediately. Instead, these users would potentially see alterations once the ten-year lock-in period, set to conclude in 2027, comes to an end.

Solar companies and advocates argue that further reductions in these rates would undermine the attractiveness of solar rooftops for homeowners. Reduced savings could deter potential converts to solar energy. According to the nonprofit Solar United Neighbors, over 250,000 Arizonans currently utilize solar power in the state.

This issue has broader implications, as some business owners, like Jimmy Lee, the proprietor of Solar Power Couple, have voiced their concerns. Lee mentioned that excessive rate reductions might prompt him to move his business to a more profitable state, a decision that could lead to a decrease in solar-related job opportunities within Arizona.

Lee expressed the uncertainty surrounding the situation, stating, “It’s really hard to be able to want to invest our business and into the area, not knowing. If the changes happen, then we’ll have to find another area to move for our business.”

The Arizona Corporation Commission’s decision, for now, is to continue discussions on this matter in future hearings. It’s important to note that the next discussion is not expected to take place for several months. However, green energy advocates and solar energy groups, such as Vote Solar, remain committed to voicing their concerns and opposing any new rate changes that could affect the state’s solar energy landscape. The outcome of these deliberations will have significant implications for the future of solar power adoption in Arizona and its impact on both homeowners and the renewable energy job market.