Provo Power reveals solar savings and proposes new rates for customers

Provo City Council's recent work meeting highlighted significant developments in the city's solar energy initiatives, particularly regarding the rates for rooftop solar customers. A detailed analysis revealed that the avoided cost of generating energy from rooftop solar is approximately 4.8 cents per kilowatt-hour. This figure represents the savings Provo Power would incur if it were to build its own power plant instead of relying on solar energy.

The council discussed the implications of these findings, noting that the average monthly bill for solar customers could increase by $5 to $8. However, the return on investment (ROI) for homeowners who properly size their solar systems remains robust, averaging over $21,000, provided they do not finance their panels. The overall benefit to Provo Power's revenue from these solar initiatives is estimated to be between $75,000 and $100,000.

As the city approaches a milestone of 40,000 customers, the council is considering various options for adjusting rates for solar customers. These include maintaining the current rates, changing them for customers who installed systems after 2016, or grandfathering existing customers to protect their investments. The discussions emphasized fairness to both solar and non-solar customers, with council members expressing a commitment to transparency and thorough analysis in determining the best path forward.

The meeting underscored the city's proactive approach to renewable energy and its dedication to balancing the interests of all residents as Provo continues to grow and evolve in its energy strategies.