Utahns who have installed rooftop solar energy systems and those who plan to do so have a couple of important dates to remember under an agreement negotiated late last month between solar advocates and Rocky Mountain Power and endorsed by the Utah Public Service Commission. The agreement followed anxious negotiations among the stakeholders over the costs and advantages of rooftop solar energy generation.
The agreement grandfathers current solar consumers under existing “export credit levels” — the way the utility awards customers for excess energy they feed back onto the grid, known as net metering — until 2035. That’s the first date to remember. The second is Nov. 15 — next month. Customers who submit a completed interconnection application to the utility company by that date — the net metering “cap date” — will be eligible for the current reimbursement structure.
After the current full retail-rate net metering ends, customers will have three years to adjust to the eventual implementation of a rate program based on a calculation of the value that solar provides to the grid. During the transition, customers will still receive credits at the lower rates. The transition period ends with an export case that must be brought before the commission within three years of the cap date.
At an event feting the agreement at the Utah Capitol, Gov. Gary Herbert agreed that the settlement may not be perfect. “We have not let perfect become the enemy of good. This is not an easy issue,” he said.
“This compromise is a significant win for industry, the economy and the state of Utah,” said Ryan Evans, president of the Utah Solar Energy Association.
Part of the agreement also gives Rocky Mountain Power an avenue to recover the revenue it loses by continuing the net metering program. The provision allows the utility to charge fees to non-solar customers to make up for the losses. The solar industry has said RMP’s recovery program, called the Energy Balancing Account, is temporary and will fade away as net metering costs go down.
The full compromise agreement, including arguments from both sides along with the final ruling, can be found at the Public Service Commission’s website, https://psc.utah.gov.