RPU Adopts Grid Access Fee for Residential Solar Users

Rochester, MN (KROC-AM News) - Rochester Public Utilities is preparing to implement a change that will lower the return on investment for customers who have installed solar power systems.

RPU General Manager Tim McCollough, during his monthly appearance on Rochester Today with Andy Brownell on News-Talk 1340 KROC-AM and 96.9 FM, explained that the municipal utility will be implementing a new charge for those customers to help cover the expense of keeping them connected to the local electric power grid. McCollough says the new fee was approved last year, but RPU decided to wait to apply it in order to give time to notify affected customers and those considering installing solar power systems.

Listen to the entire program by clicking on the link below.

RPU Implements New Grid Access Fee

According to McCollough, the vast majority of residential solar systems are designed to provide enough electricity to meet household demand, but homes still need to remain connected to the grid to supply power at night or during other times when the solar panels are not generating electricity. That means any excess power generated during the day is fed into the grid and purchased by RPU, which then sells electricity back to the homeowner when the solar system is not meeting the home’s needs.

Under state law intended to incentivize the development of household solar systems, McCollough says RPU is required to purchase the excess power from residential solar customers at the same price it charges for electricity. For many solar owners, this means they often break even on their electric bills, as the revenue from selling excess power offsets the cost of electricity purchased from RPU.

Why the Fee Is Being Added

While that results in significant savings for solar system owners, McCollough says it comes at a cost for other RPU customers. He explains that homeowners benefiting from solar systems do not contribute to the cost of the wires and infrastructure that connect them to the grid. The new grid access fee is designed to recoup some of those expenses, which are currently borne by customers without solar systems.

Impact on Solar Customer Savings

McCollough says that even with the new fee, RPU customers with solar systems will continue to enjoy a significant benefit through what is known as “net metering.” He estimates the new fee will reduce the current 100% benefit to around 80–90%, while creating a more equitable fee structure for all RPU customers.

The new grid access fee is scheduled to take effect in January.

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