net metering - why is tep paying me less?

Sustainable Tucson-Solar ChallengesBruce Plenk-May 11, 2015

PHOTO BY DEAN KNUTH / ARIZONA DAILY STAR

Solon 1.6 MW at U of A Tech Park

What is Net Metering?

Vote Solar’s take on CA Net Metering

This is a national issue: Recent Action on Net Metering and Rate Design Policies

NC Clean Energy Technology Ctr

What TEP proposed• After June 1, 2015, all new PV systems have these rules• Pay 5.8 cents for each kWh sent back to the grid • No roll-over for solar customers• Change net-metering from a kWh for kWh credit to a cash exchange:

TEP would pay about 6 cents per kWh and resell it for about 12 cents to other customers

• Residential customers who go solar under the proposed plan and who use 900 KWh/month and install a 6-KW array would save about $80 per month on their average electric bill vs $102/month now (the $22 number!)

• Legal arguments set for June 10 at 10:00 am in TUCSON at 400 W Congress Rm 222. Issue: should the request be dismissed and included in a later rate case?

What is Trico Proposing?• These policies take effect Feb 28, 2015 (!!!)• End roll over• Pay 3.6 cents/kWh sent to the grid • A new “Monthly Data Cost” will be charged all NEM

customers of $3.38• Legal arguments set for May 18 at 1:00 IN TUCSON at

400 W Congress, Rm 222• Issue: should the request be dismissed and included in

a rate case?• SSVEC is similar but only 3.0 cents/kWh

Who is involved in these cases?

• A lot of utilities (APS, coops, etc)• RUCO only in TEP• Solar companies and groups (ARISEIA, SEIA,

Vote Solar, Kevin K, TASC, ASDA)• Environmental groups (Earthjustice) • Pascua Yaqui tribe and some individuals• ACC Staff

Are there studies that show if solar and net metering are a net positive for ratepayers?

• An analysis in Connecticut puts the value of solar at 20-25 cents/kWh. • A cost-benefit study of net metering in Missouri

concluded that the practice is beneficial for all customers, regardless of whether they have rooftop solar or not..

• A Maine value of solar study put the solar valued at 33 cents per kWh, more than twice cost of utility power.

A study commissioned by the California Public Utilities Commission found that, on average, solar customers on average cover their full costs to the electric grid.

• The benefits of net metering in Mississippi outweighed the costs in all but one scenario according to a 2014 study.

• An analysis from the Lawrence Berkeley National Laboratory (LBNL) found that even the most aggressive net-metering solar programs would have minimal (0.1-2.7 percent) impact on electricity rates.

• A study by the Nevada Public Utilities Commission shows that benefits of rooftop solar outweigh the costs.

Impact of new fees on jobs and installs

• Arizona had 9200 solar jobs in 2014, 3rd most in the US but down from 2nd in 2014), BUT

• SolarCity relocating 85 Arizona workers, cites solar fees• ”[SRP fees are] bad for the economy," Rive said. "Arizona is the state with all the

sun. All the other states (where we operate) are doubling their solar capacity, and Arizona is shrinking, which makes no sense.”

• [As of late March] Only 61 SRP customers have applied to install solar since the Dec. 8 deadline to avoid the new fees, according to data from the utility posted on a public website that tracks statewide installations. Several hundred a month were installing solar each month last year before the new fees

• While unclear, it seems likely that more solar jobs will be cut if these policies are adopted and fewer customers choose solar

So what does it all mean if the ACC approves?

• Smaller PV systems to minimize “lost kWh”• Longer payback times; Solar more costly• Uncertainty for businesses • Higher payments to utilities since no roll-over• Fewer installs by “fence sitters”• State reputation for solar hurt…

• More customers go off-grid…

What this is not about!

• These cases are NOT about aggregated net metering, which would allow for community solar and other solar innovations.

• ACC could approve virtual (aggregated) net metering (see Docket # 10-0202) but has not acted on that old docket.

• Not about changing the REST requirements• Proposals do not apply to current PV customers

Batteries to the rescue??

• Tesla Powerwall getting lots of press• System they are selling suitable for backup not

for “night” power due to short cycle life• Other batteries available, including

Sungevity/Sonnenbatterie (4000 installs in Germany)

• Not clear how this will affect things….

The punchline:

Questions??

• Bruce Plenk• Solar Possibilities Consulting• solarlawyeraz@gmail.com