AriSeia Announces the Arizona Energy Futures Conference

"Solar: A Force For Economic Development"
Friday, Oct. 6, 2017 9am to 4pm

Click here for details

APS Rate Case - Higher rates, solar changes now effective as of September 1st

APS customers had until August 31st to submit complete interconnection applications to APS in order to be grandfathered under earlier solar policy.  Basic rates have increased and net metering was eliminated, replaced by a fixed purchase rate that starts at $0.129 per kwhr and will decrease in the future.  Further details are posted in a link below.

Quick APS Links:

News Release (Aug. 15, 2017)
Summary for Residential Customers
Summary for Business Customers
Solar Grandfathering Fact Sheet (also see the note below for additional information)

The Arizona Solar Center has put together an unofficial summary of the new APS rate schedules for new solar customers, click here.

APS Stakeholder meeting has been cancelled-  Will be rescheduled in 2018

On August 21st APS emailed the following information to Stakeholders (but it does not seem to be on the APS website):

Stakeholders,

The Arizona Corporation Commission (ACC) has approved a decision in our rate review, and we are happy to share some details with you affecting our solar customers. We appreciate your support in delivering this message to customers and will be glad to help you with any questions you may have. For your reference, attached are letters that were sent to customers regarding grandfathering. Other resources are available at aps.com/gosolar.

Grandfathering

• Current solar customers that are interconnected to the APS grid will remain grandfathered for 20 years from the date of interconnection.
  • The grandfathering stays with the premise. Systems transferred to a new premise will require a new application, and the customer would no longer be eligible for EPR-6.
  • Over the terms of the grandfathering period, a customer may not increase the capacity of their grandfathered solar system by more than a total of 10% or 1 kW, whichever is greater.
• Customers who submit a complete application by 11:59 p.m. August 31, 2017 will be eligible for grandfathering. The system would need to be installed and have AHJ approval by February 28, 2018 in order to qualify. A complete application includes all of the following:
  • Customer Application
  • Executed Contract
  • Disclaimer
  • Consumer Acknowledgement
  • Installer Application
  • Three Line Diagram
  • Site Plan

Transaction Privilege Tax (TPT) Changes Affect Solar Business and Customers

AriSEIA reported this past November that the TPT exemption covering the installation of solar energy systems would expire at the end of the year with new regulations going into effect on January 1, 2017. A bill was introduced in the last session of the Arizona Legislature to make the exception permanent, but it did not receive a hearing. Since there was no bill passed to extend the exemption, the new regulations are in effect.  Below is the notice TEP sent to its contractors:

The First Regular Session of the 53rd Arizona Legislature adjourned last week and we wanted to make you aware of an important change that may affect your tax liability as a solar contractor. As of January 1, 2017, the gross proceeds of sales or gross income derived from a contract to provide and install a solar energy device are now taxable under the State of Arizona’s transaction privilege tax statute (see Arizona Revised Statutes Section 42-5075.B.13). An exemption for this activity had been enacted in 1996 with a sunset date of January 1, 2017. A legislator in UES’ service territory, Senator Sonny Borelli (R - Lake Havasu City), had introduced legislation that would have eliminated the sunset date and made the tax exemption permanent. However, the bill did not receive a hearing and this exemption is no longer effective as of January 1, 2017. Additionally, a policy rider effecting the exemption was not included in the budget signed by Governor Ducey.

From December 31, 1996 and up to January 1, 2017, the gross proceeds of sales or gross income derived from a contract to provide and install a solar energy device (commonly called Sales Tax in Arizona) were exempt.  It appears that this is no longer the situation and sales of solar devices may be subject to sales tax (TPT).  Thank your legislators.

Editorial Note:  A review of the Arizona Revised Statutes http://www.azleg.gov/arstitle/ Title 42-5061 (M) on 6-6-2017 indicates "M. There shall be deducted from the tax base the amount received from sales of solar energy devices.....".  Apparently only contracting is affected by the above TPT change.  Watch this space for updates as the Arizona solar industry researches this subject.

Public Meetings: