AZ electrical ratepayers should not be forced to subsidize rooftop solar

August 15, 2013

AFP-Arizona thanks the Arizona Free Enterprise Club for its work to protect Arizona’s electrical ratepayers from being forced to pay higher rates, via the current net metering system, to subsidize rooftop solar generation.  AFP-Arizona is in favor of reducing the subsidies to rooftop solar in the current net metering system.

Below is the Aug 15 statement from AzFEC.  The org can be reached by emailing Scot Mussi at scot @

Solar Subsidies on the Ropes

After years of increasing mandates and subsidies to prop up the renewable energy industry, the Arizona Free Enterprise Club is pleased to see the Corporation Commission begin to roll back these costly programs.

The current subsidy battle is over a policy called net metering, a program that provides energy credits to solar customers for excess power they put back on the grid.  While the idea behind net metering is reasonable, the current program is not market based and is an unfair giveaway being paid for by non-solar ratepayers.

Of course the solar industry is doing everything they can to protect this lavish subsidy.  Recently they have been claiming that this is about “energy choice” for customers.  In fact the opposite is true, and without reform the subsidies will only get more costly for ratepayers.  If Arizona is to have a net metering program, it should be a fair program based on what the energy is worth and what the market dictates.

The Corporation Commission is expected to decide very soon whether to end the giveaway and stop providing special treatment to the solar industry.  It’s time to end the net-metering subsidy and to support a market based approach that treats all ratepayers equally.

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