Solar energy companies and electric utilities come to an agreement on the cost-shifting bill

Little Rock, Arkansas – A compromise was achieved between the proponents of Bill 1370, the Cost-Shifting Prevention Act of 2023, and the Arkansas Advanced Energy Association on Wednesday, February 22, after several hours of discussion (AAEA).

At first, proponents of solar energy, including companies and municipalities, spoke out against the proposal, claiming it would destroy the state of Arkansas’ solar industry. Electric companies and other bill supporters claimed Arkansans without solar investments pay for those who have solar investments. They also claimed the bill prevents cost-shifting.

The bill’s sponsors, Rep. Lanny Fite of District 83 and co-sponsor Sen. Jonathan Dismang of District 18, sent a draft of the amendment on Thursday.

Following the achievement of this compromise, the AAEA, which represents solar investors and companies, confirmed they will no longer oppose the bill.

Amendments made include grandfathering all solar contracts from December 31, 2023, to September 30, 2024, and increasing the proximity where solar arrays can be located from a 5-mile to a 100-mile radius.

These amendments are anticipated to be discussed by the House Insurance and Commerce Committee on Thursday.