Nationwide, utilities have been wary of the expansion of residential solar (termed Distributed Generation in the energy industry), as we discussed in a previous post. The contentions between utility executives and DG providers came to head an announcement from Salt River Project.

SolarCity’s dispute with SRP claims that that new surcharges “sabotaged” customers’ ability to generate their own power.
The crux of SRP’s (a major Arizona utility) new fee is this: all customers who have solar arrays installed after December of 2014 will be assessed a $50 “demand charge,” which will apply regardless of how much or little power the customer’s array produces. Therefore, any new residential solar customer should expect to pay at least $600 per year, in addition to their variable utility costs. SunPower, the solar company for which I work, has determined that the SRP fees have made residential solar non-viable overnight. SolarCity has taken the same position and is now suing the utility for antitrust violations.

















