Arizona’s Solar Policy is Stacked Against Homeowners — The ACC Must Take Action Now

Arizona’s potential as a leader in solar energy is being undermined by the state’s regulatory body. With over 300 sunny days annually, the Arizona Corporation Commission (ACC) should be facilitating solar adoption, yet it appears to be doing the opposite.

In recent years, the ACC has diminished solar export rates through the Resource Comparison Proxy (RCP). This decline enables monopoly utilities, including Tucson Electric Power (TEP) and APS, to acquire excess energy from homeowners at significantly low prices, only to sell it at market rates. Such practices disincentivize solar adoption, hinder energy self-sufficiency, and keep many residents dependent on expensive utility services.

Regulatory actions should prioritize consumer interests, yet the ACC’s policies favor corporate gains over homeowner benefits. Annually, the ACC reduces the compensation utilities owe for solar power generated by households, allowing these companies to profit from the difference.

This situation raises vital questions about fairness. Homeowners should not receive minimal compensation for energy that utilities profit from. If these companies advocate free market principles, they must pay a fair price for the energy they purchase from solar-equipped residents.

To foster a healthier energy landscape in Arizona, several changes are imperative:

Restore fair solar compensation. The ACC needs to reassess the RCP to ensure homeowners receive equitable rates for their power generation. It is unjust for utilities to profit from private solar production while undercompensating their customers.

Eliminate unnecessary fees and penalties on solar customers. Current rate structures should be revised to make solar installation more financially accessible, allowing residents to save by producing their energy.

Increase transparency. Utilities must be mandated to reveal the amount of solar energy they buy from customers and the profits they make from resale to consumers. Public access to this information is crucial for accountability.

Arizona possesses the resources and public demand to lead in clean energy; however, ongoing anti-solar policies from the ACC threaten this potential. The commission’s duty is to serve Arizona’s residents and independent energy producers, not large corporations seeking profit.

Arizona’s energy future should be oriented around independence and sustainability, not solely corporate interests. The ACC holds the authority to rectify policies, restore fair compensation for solar energy, and ensure Arizona retains its place as a frontrunner in the clean energy movement.

Action is necessary. If the ACC fails to support homeowners and solar customers adequately, lawmakers and voters must call for accountability. The future of solar in Arizona hangs in the balance—it’s either support the solar community or continue enabling corporate favoritism.

Sylvia French is an entrepreneur, advocate for sustainable energy, and founder of Sollara Carbon, an Arizona-based company focused on clean energy applications.