Electricity Prices to Change in Arizona

Electricity Prices to Change in Arizona On December 5, Salt River Project (SRP) released details of its proposed electricity price changes for rooftop solar advocacy. This...

>SRP does not need approval from state regulators to make these changes and will simply apply to its board of directors on December 12. If approved, it will take effect in the April 2015 billing cycle and will affect all PV system owners who failed to submit contracts to the SRP by December 7, 2014.

These changes are divided into three aspects: First, photovoltaic system owners will need to pay an additional fixed fee of US$12-25. Second, the electricity sold by owners to the grid will be reduced from retail prices to wholesale prices, currently between $0.04-$0.06. One final change could spell the end of new rooftop PV installations in Phoenix: Owners will pay a monthly fee per kilowatt-hour of demand calculated at 15-minute intervals for maximum net demand. The first 3 kilowatts are $6.61 per kilowatt, increasing to $12.07 per kilowatt for the next 7 kilowatts.

The new rates will not only apply to new photovoltaic system owners after December 7, existing owners will also be included after a 10-year grace period.