Understanding SRP's 2023 Solar Rates: An Updated FAQ

[Originally published on March 19, 2015 | Updated on January 24, 2024 - 5 min read]

As the solar energy landscape continues evolving, staying informed about the latest utility rate structures is crucial for current and prospective solar customers. Salt River Project (SRP) has undergone several changes since 2015 in its approach to solar energy pricing and policies.

Updated SRP Solar Pricing and Policies

1. SRP's Solar Price Plans (2023): SRP offers various demand- and export-based plans for customers with rooftop solar systems. These include the Customer Generation Plan, Time-of-Use Export Plan, Electric Vehicle Export Plan, and Average Demand Plan. Each plan specifies demand charges, net metering, and export rates. For example, the Time-of-Use Export Plan allows customers to save by using energy from their system and limiting grid energy use to off-peak hours. SRP Solar Price Plans

2. SRP's Efforts to Simplify Solar Pricing: To simplify their demand-charge calculation and clarify, SRP has developed tools like the Solar Estimating Calculator, which helps customers understand their potential charges under these new plans.

The Impact of Changes on Solar Customers

1. Grandfathering Period: SRP's changes initially affected new solar customers post-December 8, 2014, with new demand charges and solar access fees. However, a grandfathering period of 20 years from activation was put in place for systems activated before this date, maintaining the original rate plan.

2. Subsequent Rate Adjustments: Since 2015, SRP has continued to adjust its rates and policies in response to the evolving energy market and the needs of its customer base. These adjustments aim to balance the cost of grid maintenance with the benefits of solar energy production.

Q&A Section

• Why SRP Adjusted Solar Rates: SRP's rationale for adjusting solar rates is to improve cost recovery from solar customers for grid usage. This reflects a broader industry trend where utilities seek to balance the grid maintenance costs with the increasing adoption of rooftop solar systems.

• Viability of Solar in SRP Territory: Despite rate changes, solar energy remains a viable and cost-effective option for many residents in SRP's service area. Innovations in solar technology and energy storage continue to enhance the financial and environmental benefits of going solar.

• Future Trends: The energy sector is rapidly evolving, strongly emphasizing renewable sources like solar. SRP and other utilities are adapting to this change, indicating a continued commitment to integrating solar energy into their service offerings.