Arizona Contemplates Controversial Shift in Rooftop Solar Rates

The Arizona Corporation Commission, which regulates most of the state's utilities, has voted to consider changes to the rates at which rooftop solar customers are compensated for excess power generation. Solar energy advocates argue that this move will create instability in the industry. The proposed changes include reconsidering the 10% cap on annual rate reductions for new solar customers and a rule that locks solar customers into agreed-upon rates for 10 years. The solar industry warns that regulatory uncertainty will harm businesses and result in job losses. The debate will not affect rates for current solar customers, but future commissioners may broaden the discussion if the hearings extend beyond the next election cycle.