Dive Brief
- In Arizona, SolarCity is lowering its prices to offset a new fee on rooftop solar systems imposed by state regulators.
- The new fee of about $5 a month for homes with solar panels has driven at least one solar installer out of business.
Dive Insight
The is the first sign that the Arizona Corporation Commission's decision to impose a fee for rooftop solar, while far below what Arizona Public Service wanted, is affecting the market. Other states are reviewing their net metering policies so we may see rooftop companies having to make similar adjustments around the country.
The owner of the the solar company that went out of business believes other small solar companies will follow suit. This may open up opportunities for larger companies like SolarCity and Sunrun that can absorb the new fee.
“In an industry where incentives have disappeared, state rebates have disappeared ... when you are trying to compete against a highly subsidized fossil-fuel market, these incremental costs are tough to absorb,” SolarCity CEO Lyndon Rive said.
