The numbers and assumptions included in some answers below are based on Idaho Power’s current service offering. Ongoing cases with the Idaho Public Utilities Commission (IPUC) could change the billing and compensation structure for on-site generation in the future. Existing residential and small general service on-site generation customers as of Dec. 20, 2019 have been grandfathered into the current offering by the IPUC.
Investments for homes in San Jose and Boise with identical energy use
|San Jose, California||Boise, Idaho|
|Average monthly electric use:||500 kWh||500 kWh|
|Average monthly bill:||$125||$45|
|System size to offset nearly 100% of use:||3.75 kW DC||3.75 kW DC|
|System net cost after tax credit:||$12,400||$8,400|
|Simple Savings1 Calculation|
|Estimated break even point:||8 years||17 years|
|Total 20 year payback:||$21,200||$950|
|NET PRESENT VALUE1 CALCULATION|
|Estimated break even point:||10 years||Beyond 20 years|
|Total 20 year payback:||$10,500||-$1,700|
Sources: Project Sunroof and PVWatts Calculator 1Find descriptions of simple savings and net present value under the question Why does Project Sunroof provide two different 20-year values? at idahopower.com/solar.
Idaho Power’s on-site generation tariffs are not contracts and are subject to change. The current rules do not represent a guarantee of future pricing. Modifications to the tariff’s billing or compensation structure, including measurement interval and the credit value of excess energy generation, will affect the amount a customer would be compensated. As stated in the Idaho Residential Energy System Disclosure Act, legislative or regulatory actions can affect or eliminate one’s ability to sell or get credit for any excess power generated by the system and may affect the price or value of that power.
Connecting Your System
Excess Energy Credit Transfers
- Excess energy credits must be available.
- Service agreements must be held by the customer and be for the customer’s use.
- Service agreements must be on the same contiguous property and be served by the same primary feeder as the customer generation (i.e., on-site generation or net metering) service agreements.
- Transfers can only occur between Residential and Small General Service accounts (Schedules 1, 6, 7 and 8) or between Large Commercial, Industrial and Irrigation accounts (Schedules 9, 19, 24 and 84).
- If multiple service agreements are eligible for aggregation, excess credits must first be applied to eligible service agreements on the same rate schedule as the on-site generation/net metering service agreement. Remaining excess credits may then be applied to offset consumption at eligible service agreements on differing rate schedules in accordance with the criteria detailed above. For example, if the transfer is occurring from a Schedule 6 (Residential) service agreement to two eligible service agreements, one Schedule 1 (Residential) and the other Schedule 7 (Small General Service), you must transfer some portion of your credit to the Schedule 1 service agreement to be eligible to transfer a portion to the Schedule 7 service agreement.
Schedule 84 Customer Generation (Case IPC-E-20-26)
In this filing, Idaho Power is proposing two modifications to Schedule 84, Customer Energy Production Net Metering for commercial, industrial and irrigation (CI&I) customers:
- Grandfather existing on-site generation customers in Idaho taking service under Schedule 84 under the current 1 kilowatt-hour to 1 kilowatt-hour net monthly compensation structure for 10 years. We also requested to grandfather customers who have applied to connect a new customer generation system.
- Modify the metering requirement in Schedule 84 for new CI&I customers. The requested modification would remove the two-meter requirement for new Schedule 84 customers, which will simplify the interconnection process moving forward.
Large general service (i.e., large commercial service), industrial and irrigation (CI&I) customers taking service under Schedules 9, 19, and 24 in Idaho and Oregon.
In discussions with customers, installers, and other stakeholders, the company is aware of concerns associated with the incremental costs and complexities that exist as a result of this metering requirement. This change will simplify the interconnection process for CI&I customers.
In a future docket, the company will study the compensation structure and export credit rate following the process the IPUC laid out in Case No. IPC-E-18-15. This future study may result in changes to the measurement interval and compensation structure applicable to Schedule 6, 8 and 84 customers. Deciding on the terms of grandfathering for Schedule 84 customers establishes who would and would not be subject to potential changes in the compensation structure and the export credit rate.
If approved by the IPUC, the following CI&I customers would be eligible for grandfathering:
- Customers currently taking service under Schedule 84.
- Customers with an active application to take service under Schedule 84 as of June 19, 2020, who complete the interconnection process by the application expiration date.
- Customers who make a binding financial commitment and submit a customer generation application between June 19, 2020, and December 1, 2020. Projects must complete the interconnection process by the application expiration date and proof of financial commitment will be required.
Grandfathered systems would be subject to the existing two-meter design standard. Systems would be grandfathered at the originally installed nameplate capacity of the system.
Under the Company’s proposal, the customer who moves into a property with a grandfathered net metering system gets to “inherit” the grandfathered status of the system.
Under the Company’s proposal, if a system is offline for longer than six months, or is moved to another site, the grandfathered status is forfeited.
To allow for the replacement of degraded or broken panels, customers whose applications were approved before May 1, 2020 may increase the capacity of their grandfathered system by no more than 10% of the originally installed nameplate capacity or 1 kW, whichever is greater. The total number of panels must remain the same as the originally installed system.
Under the Company’s proposal, grandfathering will apply to the original approved nameplate capacity of the system prior to an IPUC order. The company proposes that future expansions must be separately metered and will take service under the rules in place at the time of the expansion. Approved nameplate capacity will be based on the approval standard (AC or DC) in place at the time the application was received.
- For customers whose application was received before May 1, 2020, expansions are defined as any increases to the nameplate capacity of the generation source. For solar, this is defined as the total nameplate rating of the solar PV array.
- For customers with an application received after May 1, 2020, expansions are defined as any increase to the AC capacity of the system as defined by the maximum power rating of the inverter or for AC generating systems such as wind or hydro, the AC rating of the generation source.
The Company proposed that grandfathered status lasts 10 years from the commission order date. Additionally, a customer who modifies their system from a two-meter interconnection to a single-meter interconnection will forfeit their grandfathered status.
Future customers should note that Idaho Power’s on-site generation tariffs — Schedules 6, 8, and 84— as with all tariffs, are not contracts and are subject to change at any time upon order of the IPUC. Changes to the on-site generation tariff in the future may include, but are not limited to, modifications to rates, billing components, billing structure, compensation structures, and the value for excess energy produced by the customer’s on-site generation system (and thus the amount a customer would be compensated).
Idaho Power remains concerned about the potential cost shift that increases in customer generation may have on the remaining standard service customers and will continue to explore solutions.
Under the proposal, grandfathered customers may retain their two-meter system and the associated compensation structure for 10 years. After 10 years, the compensation structure may change to the structure in place at that time. Idaho Power anticipates that a billing system solution may be viable and would allow the customer to keep the two-meter set up.