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Updated Aug 23, 2013 - 1:53 pm

Arizona utility proposes changing solar rates

PHOENIX -- A proposed rate change for Arizona Public Service Co. customers who install rooftop solar panels could affect the future of the state's solar industry.

The utility is proposing to give customers with new solar-panel systems less credit for the electricity their systems supply to the power grid under a proposal pending before the Arizona Corporation Commission.

Greg Field of Arizona Solar Concepts said if the commission approves the proposed changes to the utility's net metering program, it will destroy the state's solar industry.

The proposal would drop the rate of return by as much as 40 percent, but the utility said new customers would also be offered incentives.

The utility said the change is needed because solar customers are not paying enough for the services they get when their panels are not producing electricity.

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