Solar and Storage Policy & Incentive Updates
OH - AEP Approved to File Cuts to Excess Generation Compensation for Small Systems
The Ohio Public Utilities Commission (PUC) has approved AEP Ohio’s application to update its excess generation compensation rate under its Cogeneration/Small Power Production tariff. Under the new rates, buy-back value in the winter will decrease 44% to $0.02939/kWh, and buy-back value in the summer will be reduced 66% to $0.02979/kWh. The new rates apply to systems <100 kW, and will take effect once a final version of the tariff is filed by AEP.
CA - CPUC to Vote on Adjusting Solar Rebates for SGIP Equity Customers
The California Public Utilities Commission is voting to apply the new SGIP solar sizing rules to the Residential Solar and Storage Equity (RSSE) program. As a part of SGIP, the $280 million RSSE program funds solar paired with storage and standalone storage projects for low-income households. The resolution before the CPUC includes adoption of the Expected Performance-Based Buydown (EPBB), a calculator to adjust solar rebate amounts based on output compared to an ideal reference system’s performance. The CPUC is voting on the resolution on Thursday, January 30, 2025.
TX - El Paso Electric Files for ~23% Rate Increase
El Paso Electric Company has filed a request with the Public Utility Commission of Texas (PUCT) to increase its base rates. Under the proposed rates, the average residential customer would see their monthly bill increase by $22.39 per month, or 23.23%. If approved by the PUCT, the new rates would take effect March 3, 2025.
MI - PSC Approves 5% Rate Hike for DTE Customers
The Michigan Public Service Commission (PSC) has approved a rate increase for DTE customers, effective February 6, 2025. Under the new rates, the average residential customer will see their monthly bill increase by approximately 5%.
US - FERC Approves SPP Markets+ Tariff in Western States
The Southwest Power Pool (SPP) has received approval from the Federal Energy Regulatory Commission (FERC) for its proposed Markets+ tariff, a regional, real-time and day-ahead market developed with over 30 western entities. Markets+ is anticipated to launch in 2027, and FERC’s recent approval allows participants to begin phase two of development. Phase two will begin in early 2025 and includes development of systems, testing, and parallel operations.
MN - PUC Opens Investigation into “Capacity” Definition for Net Metered Facilities
The Minnesota Public Utilities Commission (PUC) has opened a docket to clarify and potentially amend the definition of “capacity” for net metered facilities. The current definition has left open to interpretation whether a facility’s capacity is its nameplate capacity, or if it is measured by the output generated regardless of nameplate capacity. For systems that are limited by technology such as inverters or power control systems, output may be de facto below the nameplate capacity of the facility. Solar advocates in the state have requested clarification of the current definition, and potential amendment if it is found to not include limited technology.
WY - Bill to Reduce Net Metering Compensation Advances in Senate
A new bill, SF 111, that would require the Public Service Commission to set new compensation rates for excess generation was approved by a state Senate committee. Current Wyoming law mandates retail compensation for net metered customers. The bill would allow customers who interconnect before January 1, 2026, to be grandfathered under the retail rate. SF 111 was approved out of committee on January 27, 2025, and still needs to be reviewed by the broader Senate and House.
WA - Bill Establishing Community Solar Program Introduced
HB 1598, a bill creating a state wide community solar program in Washington, was introduced in the state legislature. The program would allow for community solar systems up to 5 MW, with at least 50% of subscribers being residential customers and at least 30% of subscribers qualifying as low-income. The program would offer additional incentives to projects that install storage, are located on preferred sites, or serve tribal communities. The bill was introduced on January 24, 2025, and is under review in the House.