Utah utility proposes solar tax

Facebook
Twitter
LinkedIn
Reddit
Email

The ongoing dispute over distributed solar energy generation and its disruption to utilities’ struggling business plans in the US continues with a utility in Utah considering a monthly solar fee.

PacifiCorp’s Utah utility, Rocky Mountain Power (RMP) has proposed a monthly charge for solar customers.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

A monthly fee of US$4.25 has been proposed for residential net metering “to help pay some of the fixed costs of supplying and receiving electricity”, according to RMP’s website.

To encourage solar generation, RMP also has an installation rebate for all solar customers. The Utah Solar Incentive Programme (USIP) is an incentive from US$0.75 to US$1.20 per Watt installed.

Charges targeting solar customers are one of many attempts in the US for utilities to gain extra service and maintenance fees from clean energy producers. Most recently utility Arizona Public Services (APS) imposed fees of around US$4.90 a month on solar customers.

The changes in net metering fees and proposed solar tax models across the US has been attributed to The American Legislative Exchange Council (ALEC), an association for conservative law makers, that proposed a template anti-net metering policy in 2013.

The dispute between solar customers and utilities was further compelled last month as Barclays bank downgraded the US utility bond market – a strong indication that solar PV-generated power coupled with storage presents a long-term disruptive risk to utilities.

According to the annual ranking published by industry body Solar Electric Power Association (SEPA), America’s utilities were responsible for 82% of new solar capacity in 2013, up from 72% the year before.

Executive Director of Utah Clean Energy, a non-profit renewables advocator, Sarah Wright testified against the proposed charge, asking for further analysis of the benefits of solar. “No net metering charge should be implemented without consideration of a full cost/benefit analysis across all customer classes,” she sad.

The state of Minnesota recently set a precedent as the state’s Public Utilities Commission (PUC) approved the US’s first methodology for calculating the value of consumer-generated solar energy.

The US solar group, The Alliance for Solar Choice (TASC) spoke out against the Value of Solar Tariffs (VOSTs) being used in other states, a spokeswomen told PV Tech “VOSTs give utilities control and impose taxes on solar customers.”

But the practice of analysing distributed generation “is not necessarily something we oppose. And, we don't disagree with Utah Clean Energy. A transparent analysis on the benefits of solar is a good thing.”

The proposed fee is still being reviewed by Utah’s Public Service Commission. RMP’s projected overall average price increase rate for 2015 is 3%.

Read Next

Sponsored
October 7, 2026
We speak to Gregory Resch of EBOS supplier Voltage about what that shift involves, and why the industry should be wiring for 2kV now.
October 7, 2026
PV module prices in Europe have dropped across all technologies in September 2026, between 1.1% and 3.6%, according to the latest PV Index.
October 7, 2026
India’s MNRE proposed standardised ALMM List-II solar PV cell nomenclature, introducing 14-character codes.
October 7, 2026
Sonnedix acquires 54MW of Italian solar, while Sunrock and BGRE partner to assess 135MWp across Germany, France and the Netherlands.
October 7, 2026
Independent power producer (IPP) Zelestra has closed a US$350 million credit facility for the 203 MW Reclamation Solar project in Indiana.
October 7, 2026
As solar PV continues to grow globally, the technology is set to become the largest contributor to the world’s electricity mix from 2031, according to a report from technical and safety expert DNV.

Upcoming Events

Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events, Upcoming Webinars
October 21, 2026
2pm AEDT
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland