The deal still needs approval from the state's Public Utilities Commission, but it came after widespread opposition to its previously proposed fixed charges that many said would stifle growth of rooftop solar systems. Xcel worked out the new plan after meeting with local governments, solar advocates and conservation groups.
The proposed settlement comes on the heels of similar deals in other states. In Texas, El Paso Electric recently dropped its request for a $15 per month fee on customers with rooftop solar installations. Earlier this month, the New Mexico Public Utilities Commission blocked a proposed 31 percent increase in the per-kilowatt charge for customers with solar installations.
They are the latest twists in a back-and-forth battle between the solar industry and electric power companies over net metering, a billing mechanism adopted in the late 1970s that pays people with rooftop solar for the unused electricity they feed back into the grid.
According to the North Carolina Clean Energy Technology Center, 41 states have some version of net metering. The practice helps homeowners offset the cost of installing rooftop solar panels. It also helps utilities reduce the need to buy expensive power during peak times.
But with the proliferation of rooftop solar, utilities have argued that customers with rooftop solar systems are taking advantage of the grid to sell their excess power without paying their fair share to maintain the grid. As a result, utilities and regulators around the country have been eying cuts to net metering payback rates, even adding special charges for customers with rooftop solar or restricting third-party financing for solar installations.
Colorado Settlement to Pay Solar Owners Higher Rates for Peak Power
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