IMHO, the leasing model is on life support in Arizona and pretty much dead in SRP territory. Don't forget, the state treasury department has decided to extend a property tax to leased systems to the tune of another couple hundred $$ a year. Imagine that, a state government to whom taxes are anathema has finally found a tax to love! Technically, that tax is charged to the lessor but all leases I'm aware of provide for such taxes to be passed onto the lessee.
APS bought the newly elected members of the Corporation Commission so that body will be gleefully tripping over itself to institute similar $50/mo fees on APS and Tucson Electric solar customers. Add in the likelihood of interest rate increases over the next year or so and I expect all solar financing not just leasing will look unattractive by 2016. I just learned a homeowner in my HOA has gone with a lease but hopefully, they'll be grandfathered. Unfortunately, they are clueless on solar and have trusted the solar salesman to have their best interests in mind. SMH.
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You are joking right? Who in their right frickin mind would volunteer to go from paying the POCO 10-cents per Kwh to paying $1 per Kwh.
The POCO's are just exposing what is really going on. They are incurring cost from solar subsidies they are forced to give, and then allowed to pass those cost to rate payers in the form of higher electric rates as a hidden tax. Basically Solar is Welfare for the wealthy being paid for by rate payer. The POCO's think it is unfair to pass those cost onto people who cannot afford to take part in the Welfare. They think wealthy Solar users should be paying the cost, not their neighbors.Leave a comment:
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They are already working on testing grid scale systems. I have read a lot of them experimenting with large scale energy storage using different types of chemistry including LiFe. These things look like 5th wheel trailers that are placed next to a main switch yard. The size comes down to how long does this "UPS" has to work to keep the grid in that area stable.
It is going to be a long time before a homeowner can justify and pay for a battery system even if they are charged $50 / month. The POCO will just find a way to get more money from their customers to cover cost of batteries.Leave a comment:
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Or, it might serve as further impetus for more battery research. If I was running a POCO, I'd sure think about maybe getting out in front of that one - not like the opportunity they missed with solar - if not to own the equipment, then to own and repress the technology.Leave a comment:
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SRP (Arizona POCO) hits solar customers with $50/month fee. APS next?
Talk about trying to kill the industry. If this starts to be common, won't homeowners look more and more at going off grid? Instead of paying $50+ per month in addition to whatever the bill as before, I'd rather use that money toward a long term, low interest loan on batteries.
SRP passes new solar rate structure; solar groups threaten lawsuit
Following an extensive three-month public process, Salt River Project's board of directors Thursday approved a general rate hike as well as controversial changes to the utility's solar rate structure.
For all SRP customers, the board approved a 3.3 percent hike for one year starting this April. Then another 3.9 percent increase will take effect beginning April 2016.
Beginning with the April 2015 billing cycle, the monthly bill for a typical residential customer will increase by about $3.85 until April 2016, when that figure will then average $4.60.
The board also approved a new price plan for residential customers who, after Dec. 8, 2014, add rooftop solar systems.
Management had proposed that existing solar customers be "grandfathered" from moving to the new price plan for a period of 10 years, but the board extended that by up to 20 years for SRP customers who installed rooftop solar units to run from the time the system was installed. The Board also voted to allow unlimited transfer of the grandfathering with the sale of the home for all rooftop solar customers. during that 20-year period.
The new self-generation price plan includes increased charges to better recover fixed costs related to the solar customer's service facilities and their use of the grid, but also reduces the price the customer pays per kilowatt hour for energy.
SRP District 7 board member Keith Woods said that the approved increases were a "splitting of the baby" between the proposal from SRP management and the objections of solar industry representatives.
"It was a difficult decision," said Woods. "We have discussed this for months and there has been significant public comment. We believe this is a fair decision."
The measure to approve the grandfathering provisions protecting leased and owned solar facility contracts passed 12-2. The overall rate structure passed 11-3. The SRP board president only votes in case of ties.
Solar industry representatives threatened litigation if the new rates passed.
Boies, Schiller & Flexner LLP was retained to handle legal matters. The firm does not have a Phoenix office, but they have an office in the Bay Area, which is home to Solar City, one of the more vocal opponents of the rate hike.
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