Arizona rooftop solar customers are set to face mandatory monthly fees from 2025 following a decision by the Arizona Corporation Commission (ACC). The Grid Access Charge (GAC), which ranges from $2 to $3 per month, was reaffirmed in a 3-1 vote and is set to take effect in 2025. The fee is designed to recover costs associated with maintaining the electric grid, which rooftop solar customers rely on when their systems are not generating electricity.
APS and regulators argue that the charge ensures fairness among all customers. Administrative Law Judge Belinda Martin explained, “Residential solar customers rely on APS’ power grid to provide electricity when their systems are not producing, similar to relying on the power grid as a battery source of energy.” Supporters of the fee, including ACC Chairman Jim O’Connor, argue it addresses a cost shift that has unfairly placed financial burdens on non-solar customers. “$61 million were imposed on APS’ residential customers that do not have solar. That means about one million customers have been paying the bill for those that have solar on their homes,” O’Connor said.
Despite these justifications, solar advocacy groups have strongly opposed the decision, calling the charges discriminatory and unfounded. According to the Arizona Solar Energy Industries Association (AriSEIA), APS overstated the cost of servicing solar customers. The association highlighted that removing solar fees would only increase non-solar customers' bills by $0.25 per month. “Despite the evidence, the ACC will penalize solar customers several dollars per month and approved an amendment to increase it in APS’ next rate case, which is anticipated to be filed in 2025,” AriSEIA said in a statement.
The decision has drawn criticism for its potential impact on Arizona’s solar industry. Adrian Keller, program director at Solar United Neighbors, described the fee as a penalty on families investing in renewable energy. “The Commission has consistently approved APS’ requests while neglecting the ratepayers they are supposed to protect,” Keller said. He argued that residential solar reduces the need for expensive infrastructure, strengthens the grid, and benefits all customers.
Solar customers also feel unfairly targeted. Approximately 111,000 APS solar customers will pay the GAC, while 73,000 others on older net metering agreements are exempt. Critics have expressed concern that the ACC’s decision undermines Arizona’s renewable energy goals, discouraging homeowners from adopting solar solutions.
Although the initial fee is relatively low, the ACC has authorized APS to propose increases in its 2025 electric rate case, sparking fears of significant hikes in the future. APS previously sought fees as high as $88 per month, a proposal that solar advocates argue would further deter adoption.
As the new charges take effect, advocacy groups are considering appeals to challenge the decision. The debate underscores the tension between promoting renewable energy and maintaining fairness in grid costs, leaving Arizona’s rooftop solar future uncertain.