ORIGINAL REPORTING:Another Showdown Over Solar In Arizona
Dueling studies draw battle lines for next Arizona utility-solar showdown; Studies commissioned by APS and TASC have hugely different approaches to solar valuation, but share an important piece of common ground
Herman K. Trabish, March 10, 2016 (Utility Dive)
Editor’s note: Since this story ran, an Administrative Law Judge has ruled in the case and it is scheduled to go to the commission for a final decision in mid-December.
Arizona Public Service (APS), the state’s dominant electricity provider, and The Alliance for Solar Choice (TASC), representing the nation’s dominant solar installers, are headed for another showdown when the Arizona Corporation Commission convenes in December to make its final decision in the landmark Value of Solar proceeding. In a parallel proceeding, APS commissioned and filed Navigant Consulting’s Solar Project Return Analysis for Third Party Owned Solar Systems which concluded that solar third party ownership (TPO) providers project returns have headroom to adjust to some changes in rate structures while maintaining project returns and therefore, according to APS, changes to rates or to net energy metering (NEM) do not mean the end of a viable solar market.
TASC commissioned and filed Crossborder Energy’s The Benefits and Costs of Solar Distributed Generation for Arizona Public Service (2016 Update) which asserted that the appropriate framework for assessing the relative benefits and costs of net metering is to focus on the value that customers receive for the electricity that is exported from their premises. It concluded that if all benefits of residential solar to APS are considered, rooftop solar is worth between $0.248/kWh and $0.311/kWh to the utility, well above the retail rate credit it currently earns… click here for more