Tucson utility proposal would slice rooftop solar rate benefits, Lemoine quoted
New Tucson Electric Power home solar customers relying on “net metering” to save on their electric bills would face a $22-per-month increase under a TEP proposal.
The utility asked the Arizona Corporation Commission Wednesday to approve what it calls a more equitable price for electric service, while still offering solar users significant savings. They say it would reduce the “subsidy” that other electric customers pay to cover costs incurred by solar customers.
“It is a cutting-edge question. People around the country are actively looking at it,” and Arizona is one state where this issue is being watched closely, said Derek Lemoine, a University of Arizona economics professor who specializes in energy issues.
Lemoine didn’t take a position on TEP’s particular proposal but said utilities may or will need additional revenue from solar customers to cover short-term costs related to their existing grid network.