Rocky Mountain Power’s solar net metering policy is undergoing some transitions.
Near the end of 2016, Rocky Mountain Power (RMP) proposed a new solar net metering policy. Their plan wasn’t well-received, so the Utah Public Service Commission put the matter on hold to allow time for negotiations.
Now, Utah state and local governments have reached a compromise with the Salt Lake City-based utility company. The new RMP solar net energy metering (NEM) settlement agreement changes some of the old rules.
Utah’s Net Metering Rate for Solar Customers
Utah homeowners who have already adopted photovoltaic power are smiling about the new NEM settlement agreement, as it includes a grandfather clause.
Existing RMP solar customers will continue to be compensated for the excess electricity produced by their home PV systems at the full retail rate, which averages about 10.5 cents/kWh. And this amount won’t change for quite some time — the retail-rate NEM credit policy is to remain in place through the end of 2035.
Utah’s Net Metering Compensation for New Solar Customers
The agreement isn’t quite as great for new solar customers — but the new Utah NEM policy isn’t disastrous, either.
Utah homeowners who apply for net energy metering after Nov. 15, 2017, will still be compensated for the electricity they feed to the grid. The rate is slightly lower, though, at 9.2 cents/kWh.
Utah’s Solar Net Metering Future
The reduced NEM rate for new customers is a transitional arrangement, one that will last for the next three years.
During that time, the Utah Public Service Commission plans to study the value of exporting solar electricity to the utility grid. This research will be used to develop a successor program to the current net energy metering policy.
Reaching Payback Under a New RMP Solar Net Metering Policy
Regardless of what happens with any Utah NEM policy, homeowners can still reach payback in a reasonable time. Certainly, a more favorable policy means a faster return on investment, but a home PV system will pay off even without net metering.
With a professional photovoltaic installation, your solar energy system is sized to meet your household energy needs. As a result, you won’t have to rely much on the utility grid. So your monthly savings will add up quickly, even if Utah decides to abolish the state net energy metering policy.
For Utah homeowners, the go-to source for expert advice on planning a home PV system installation is Intermountain Wind & Solar. As Utah’s leading photovoltaic provider, we’ve helped people across the state make the switch to solar power.
We can provide system pricing and answer all your questions about Utah industry developments and policies that could affect the payback period for a home photovoltaic system. To learn more about solar net metering, contact us and schedule a free consultation today.