Page 6 - the NOISE September 2013

NEwSbriefs NEwSbriefs
illus by
Matthew kOsCiCa
take Off by JOey bONO
joeynhighcountry@yahoo.com
People from all across the world come to bask in the Arizona sun. Utilizing that same resource to power an ever-increasing de- mand for energy, sunshine has enabled the state’s solar industry to boom in the last four years. This percussion is most pronounced in the residential rooftop solar sector, as Ari- zona is second only to California in number of installations, 710 in 2012, up from 273 in 2011.
Due in large part to state and federal tax credits and utility cash incentives, as well as a sharp price drop in solar components, ho- meowners have reduced out-of-pocket costs for solar installation by as much as 69%. This incentive trifecta has essentially ramped up the popularity and subsequent infusion of
“homemade” renewable energy onto the grid.
Just seven years ago, the Arizona Corpora- tion Commission, which regulates the state’s utilities and energy policies, mandated that
15% of energy generation must be through renewables by 2025, and outlined the net- metering process of tracking energy sent into the grid and consumed from the grid.
Seven years after implementation, the so- lar industry faces immense pushback from utility companies, such as Arizona Public Service and the Salt River Project, who will not benefit financially from the influx of so- lar. In proposing “usage fees” on new solar
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aps lObs iNdustry-veXiNg prOpOsal as sOlar iNstallatiONs
customers now, APS has argued that “cost shifts” are being created and non-solar cus- tomers will end up “footing the bill,” but the public utility fails to also divulge that much of the state’s energy infrastructure is already paid for, and indeed, if solar continues on its trajectory of popularity, current projected costs for additional power plants and main- tenance will fall to the wayside.
Currently, the Commission is tasked with assessing the possible cost-shifts associated with distributed energy, and is scheduled to make a ruling this December.
The proposal reads:
1. All new Distributed Energy (DE) grid- tied customers select either Net Me- tering Option or the Bill Credit Option. Under the Net-Metering option, all cus- tomers will be placed under rate plan ECT-2 Time of Use with Demand Charge Combined Advantage. At end of year, a True-Up calculator will assess any excess energy produced, and roll it over into the following year’s consumption values. Un- der the Bill Credit Option, customers will instead receive dollar amount bill credits of energy produced at a “wholesale value” based out of Palo Verde Nuclear plant at 5¢ per kilowatt-hour. [APS currently retails energy to customers at 6¢ per kilowatt-hour during off-peak hours and 24¢ per kilowatt-hour on-peak.]
2. Grandfather the use of current inter- connection Net Metering rules by exist- ing and immediately pending distrib- uted energy customers by Oct. 15th 2013.
3. Approve the continual use of direct cash incentives to new solar customers in the form of Upfront Cash Incentives (UCI) to ensure “flexibility and transparency.”