GM Volt Forum banner

Electric company taking some joy out of our new solar system

2751 Views 5 Replies 6 Participants Last post by  Mcgsp
We received the following email from or electric company. I assume Solar City knew about these charges. Why didn't they mention this to us when we received their sales pitch?

150472 Permission to Operate

Congratulations! Authorized representatives of Arizona Public Service Company ("APS") have inspected your grid-tied system. During this inspection it was determined compliance has been met with APS` Interconnection Requirements allowing interconnection of your grid-tied system to the APS distribution system on 02/07/2017.

APS will allow operation of your grid-tied system in conjunction with its distribution system applicable with all terms and conditions of the executed Interconnection Agreement relating to the grid-tied system.

Please note APS` approval is premised upon the understanding that all applicable construction and safety codes, laws, and the requirements of any governmental agencies having jurisdiction have also been complied with.

In November, the Arizona Corporation Commission (ACC) approved the Lost Fixed Cost Recovery-Distributed Generation (LFCR-DG) adjustment charge for customers who sign a contract and install distributed generation systems (i.e., solar) after December 31, 2013. The new monthly charge will appear as a separate line item on your bill and is based on the system size ($.0.70 per kilowatt).

The LFCR-DG charge helps pay for use of the electricity grid and modestly reduces the impact of shifting costs of the grid to non-solar customers. Customers on our residential demand rates are not subject to the LFCR-DG charge because their rates already partially collect fixed costs.

Equalizer customers please note: Once your system has been interconnected, your account will no longer be eligible for Equalizer budget billing. Any remaining settle up balance will be reflected on your next bill.

Questions? Contact us at (602) 328-1924 or by e-mailing [email protected]. Thank you!

Thank you for using
1 - 1 of 6 Posts
Residential solar pushes burden onto other non solar customers because the utilities undercharge for connection fees and overcharge per kwh. Realistically, if someone has a $100 electric bill, the utility might charge $10 facility connection fee and $90 for kwh usage and profit, but in reality the utilities costs might be like $60 for the connection fee and $40 for electricity and profit. This means non solar customers are subsidizing solar customers and other light users since they aren't paying their burden of the infrastructure costs.

However, to your point, I would guess the installer should mention that fee. It sounds like it isn't very much though and likely doesn't cover the actual connection costs, just reduces it some.
The utilities in Arizona _wanted_ insane fees.

It's funny how the utilities wanted to add a per kW charge for feed-in but didn't ask for a per kW charge for demand. A 100A connection is up to 24kW down. I'm sure that those 5kW solar PV systems really strain the grid.
1 - 1 of 6 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.