Arizona utility adds demand charge for solar-powered users

This new fee will be based on a solar user’s peak power demand during the month.

By Peter Fabris, Contributor | March 18, 2015

Starting in April, solar power users in Arizona will be subject to an additional “demand charge” of about $50 per month. This new fee will be based on a solar user’s peak power demand during the month no matter how much electricity is offset by their residential solar units.

This plan by the elected utility board dropped proposals to raise existing solar customers’ charges in 10 years and added a new charge on buyers of solar homes. The Salt River Project (SRP), one of the nation’s largest public power utilities, has been fighting for this and other renewable energy fees because of what the company says is needed to cover grid infrastructure and maintenance costs.

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