Salt River Project announced a rate proposal in early December that would necessitate homeowners to install batteries when they choose solar for their home.
The rate proposal by the CEO and management (rates E-16 and E-28) will effectively crush financial incentives for SRP customers and those seeking to do good by the environment to save on their utility bill. SRP board members will vote on the proposal Feb. 27, but before this decision, Arizonans are still able to make themselves heard to protect this clean, renewable source of energy.
My company, American Solar & Roofing, was the first to bring residential solar to Arizonans in 2001 and we have been working with and studying batteries for over 15 years. Due to the risks associated, we do not recommend, nor do we sell, residential batteries for solar systems.
Between 70% and 90% of residential battery systems contain cells manufactured in China. Due to Trump administration tariffs on the import of Chinese products, the cost of these cells will rise, making the adoption of residential batteries less economically viable for Arizonans who are seeking to go solar. Additionally, solar installers throughout the U.S. are experiencing high failure rates even with reputable batteries, and this places businesses at financial and legal risk should batteries fail and the system becomes ineffective.
Studies have reflected that a battery’s power capacity degrades over time when batteries are cycled often, which the proposed rates will require. This degradation impacts the money-saving potential of the battery system.
Ratepayers who will be encouraged to adopt SRP management’s proposed “solar” rate (we use the term “solar” loosely because these are truly “battery” rates) will experience financial losses within a few years of cycling their battery. This means that the return on investment that attracts residents to install these systems will disappear due to the degradation of the battery.
Finally, there are safety risks associated with batteries, especially when they are installed outside beneath Arizona’s constant desert sun and subject to summer temperatures in the triple digits.
Batteries also are currently widely unavailable, despite the immediacy of this proposal — some battery solutions are on back order for up to six months, making the rollout timeline unpredictable for consumers.
This isn’t the first time solar companies have been at odds with SRP. In 2014, the utility adopted a rate that killed solar in their territory, prompting lawsuits. We ceased solar sales because it was not beneficial for the SRP customer. Then in 2019, the utility approved viable solar rates, thus allowing us to ethically sell solar to SRP customers again. If this new proposal is approved, many solar businesses will once again cease sales in SRP territory.
This decision is not yet absolute. I encourage ratepayers to contact SRP board members before Feb. 27 to voice their dissatisfaction and to say “no” to the new rate proposal.
Arizonans have a right to pursue green, clean energy solutions while benefitting from their decision to protect the planet, and SRP should not turn its back on its solar customers while the industry identifies a more reliable battery solution. You can email SRP directly at corporatesecretary@srpnet.com.
Editor’s note: Joy Seitz is CEO and owner of Phoenix-based American Solar & Roofing. Please send your comments to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.
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