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  • Arizona Ends Net Metering

    I heard two stories on NPR today that could change things up a bit for residential solar.

    One topic was the question of whether the Federal Tax Credit on solar would be repealed once Trump gets in office. Who knows where that will go until it happens.

    The other topic was that Arizona regulators voted to end net metering in the state and limit new contracts to 10 years instead of 20. I was surprised to not see a mention of the Arizona info here yet. When monopoly utilities are allowed to legally donate literally millions of dollars (taken from my electric bill payments) to people running for the AZ Corporation Commission is anyone shocked that the utilities got exactly what they paid for?

    I at least figured Sunking would have something to say.
    Dave W. Gilbert AZ
    6.63kW grid-tie owner

  • #2
    While this can be viewed as bad news for solar users, it can just as well be viewed as good news for the health of residential PV in the same sense as Nietzsche: "That which does not kill us makes us stronger". That is, in the sense that things will either get stronger in the face of adversity, or change in response to market conditions, or die.

    For example, I'd guess that one possible consequence of the end of net metering just might be further efforts to make home energy storage more viable and so bring the time when residents can tell the POCO to put their grid power where the sun don't shine a bit closer.

    If solar can't stand on it's own by now, perhaps it ought to die.

    Given the current state of political affairs in the U.S., I'd expect more efforts to scrap net metering, tax credits and generally to expect less favorable treatment of alternate energy going forward.

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    • #3
      There are states where net-metering does not present any 'benefit' to the home-owner. Yet solar power is not dead. There are homeowners installing solar power still.

      4400w, Midnite Classic 150 charge-controller.

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      • #4
        Agreed. I alway knew solar incentives would slowly go away and they would have to if we don't want to lie to ourselves about the long term viability. I'm more upset about how a public utility that has a monopoly can "purchase" representatives on a commision board that is supposed to represent the customers. They are obviously over-charging their customers if they have 4 million dollars to donate to a political campaign. If they want to support a candidate then take it out of the executive salaries. One of them earned close to 10 milion in only one year.
        Dave W. Gilbert AZ
        6.63kW grid-tie owner

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        • #5
          When I lived in AZ I looked into solar about 5 years ago and again this year for my father. It wasn't economically viable. Low electric rates along with kWh only crediting to the same Time of Use period made it a losing proposition in anything but the very long run. The rate structure keeps the utility from having to make non solar customers pay higher rates to balance out the solar customers. Makes sense to me. Eventually solar and storage costs will come down and it will have a short enough pay off in AZ. Till then only locations that have high electric rates and/or large incentives will continue with residential solar. Maybe the AZ utilities want a monopoly on solar...

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          • #6
            Originally posted by azdave View Post
            Agreed. I alway knew solar incentives would slowly go away and they would have to if we don't want to lie to ourselves about the long term viability. I'm more upset about how a public utility that has a monopoly can "purchase" representatives on a commision board that is supposed to represent the customers. They are obviously over-charging their customers if they have 4 million dollars to donate to a political campaign. If they want to support a candidate then take it out of the executive salaries. One of them earned close to 10 milion in only one year.
            You also sound surprised. Why ? That's just that way it is.

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            • #7
              Originally posted by FFE View Post
              Maybe the AZ utilities want a monopoly on solar...
              Do ya' think ? Why wouldn't they ?

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              • #8
                Well, the good news is that the outfits that have been spoiling the market (like SolarCity) may well leave the state. Its these leasing companies that were really distressing APS. I anticipate the best year ever next year as people stampede us to get in under the July 1 deadline. The net effect is going to be smaller average systems so that less exporting is done.

                The real negative in this ruling is it has been looked on as a precedent for many utilities across the country. Net metering is going to be on the wane everywhere I'm afraid.

                I gotta laugh at how they keep crying unfair about solar people getting "free access" to the grid. Well if "fairness" is the standard of regulation, how about accessing fees on the utilities that pollute by burning coal, used subsidized nuclear, etc, etc..... Fairness is a two way street.
                BSEE, R11, NABCEP, Chevy BoltEV, >3000kW installed

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                • #9
                  Originally posted by solarix View Post
                  Well, the good news is that the outfits that have been spoiling the market (like SolarCity) may well leave the state. Its these leasing companies that were really distressing APS. I anticipate the best year ever next year as people stampede us to get in under the July 1 deadline. The net effect is going to be smaller average systems so that less exporting is done.

                  The real negative in this ruling is it has been looked on as a precedent for many utilities across the country. Net metering is going to be on the wane everywhere I'm afraid.

                  I gotta laugh at how they keep crying unfair about solar people getting "free access" to the grid. Well if "fairness" is the standard of regulation, how about accessing fees on the utilities that pollute by burning coal, used subsidized nuclear, etc, etc..... Fairness is a two way street.
                  Another reason to thank SolarCity in particular and leasing/PPA slugs in general.

                  On fairness, that's just the way the game is run. No one ever said anything about fairness anyway.

                  Get ready for the reset.

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