I served on the Corporation Commission for three years and was part of the statewide commission that passed a landmark solar pricing decision in 2017.
The commission voted 4-1 to implement the program, which will lower utility bills each year for new rooftop solar systems.
Arizona was one of the first states to take this important step. This decision was a careful compromise that turned out to be very successful.
Some say reversing that decision now is unnecessary and conflicts with Arizona's interests.
As a conservative, I love that rooftop solar gives consumers energy freedom and choice, creating competition that benefits everyone.
We have decided to reduce the price by 10% every year.
Despite this, utilities paid more than they needed to for rooftop solar in 2017. I felt we had to protect our non-solar customers better to make sure everyone benefited.
That's why we've introduced a system that reduces the cost of electricity for new rooftop solar customers by 10% every year.
Make no mistake, rooftop solar is already a valuable resource for our utilities, and as more new battery storage technologies add to rooftop solar, we can expect even more benefits and savings for everyone.
A recent study by Brattle found that technologies like batteries and smart thermostats, along with rooftop solar panels and other home energy innovations, could cost U.S. utilities and consumers just $15 billion to $35 billion.
We are committed to protecting the rooftop solar industry and its customers.
In 2017, we found an important balance. While we want to get a better deal for non-solar customers, we know that rooftop solar entrepreneurs offer utility customers a conservative way to save money on electricity while employing thousands of Arizonans.
We certainly didn't want to destroy a strong industry developing viable technologies.
We know that hundreds of rooftop solar companies in Arizona rely on our policies when they spend money and open for business. We owe it to them not to create new regulations that disrupt business. Protecting the investments of companies and citizens is the first and most fiscally conservative approach.
Thousands of Arizonans have invested heavily in solar installations based on longstanding regulations. In the middle of the game, it was important to me that we not compromise the rules for civilians.
As a result, the Authority believes that it is necessary for all current solar customers to comply with current regulations when converting to solar energy. I have no doubt that this is the right choice.
A lot has changed in the world of solar energy since this decision.
In hindsight, utility regulators made the right choice
The opening of 52 new solar panel manufacturing plants in the United States in the past 12 months alone has transformed panel production from China and other countries into robust domestic supplies, according to an August report by the American Clean Energy Association.
Additionally, recycling of solar panels is on the decline, with a recent report predicting a 623 percent increase in global market value from 2022 to 2028. The increase in domestic production and focus on end-of-life recycling are important signs for this important industry .
Looking back, there is ample evidence that the Commission did just that. Above all, the energy cost of new rooftop solar systems is now clear to all customers.
In fact, according to APS, in 2022 the company paid an average of $81.13 per hour for all the power it bought on the wholesale market, and is now buying power from new solar customers for just $76.19 per megawatt hour. Additionally, since 2017, the current purchase rate has decreased by 40%.
Despite falling prices, solar jobs remain stable. According to the National Solar Jobs Census, the solar industry employed 8,381 people in Arizona in 2017. A similar number, 8,337 Arizonans, rely on solar energy today.
Reversing this critical decision now would create unnecessary risks for thousands of homeowners with rooftop solar, and jeopardize the investment of hundreds of businesses in the state that serve this vital industry.
The decision taken seven years ago was long overdue, and reality clearly shows this.
Andy Tobin is a former Speaker of the Arizona House of Representatives, a member of the Arizona Corporation Commission, and a former Director of the Arizona Department of Administration. He is the president and owner of Tobin Business Solutions LLC, which specializes in business operations and management.
This article originally appeared in The Arizona Republic: Rooftop Solar Jobs in Arizona. Why fight over this?
