Some of the country’s major solar companies are leaving Nevada after a controversial rate hike was approved for the state’s largest utility.

The news could be a signal to policymakers in Arizona, where the future of rooftop solar is still uncertain. For industry players like Sunrun and SolarCity, the Nevada Public Utilities Commission dealt not one, but three death blows to the industry.

Under the changes, the monthly fee for most NV Energy customers with rooftop solar jumped about $5 and will continue to climb. At the same time, customers will get less money for sending power back to the grid, known as net-metering.

“Either one of those alone kills the industry,” said Court Rich, a local attorney speaking on behalf of SolarCity, which is cutting more than 500 jobs there. “But, when you put them together, and make it retroactive, it’s government at its worst."

In other words, those changes apply to existing customers, not just new ones.

Sunrun is also planning hundreds of lay offs and will cease all operations in the state because of the changes to the rate structure. Arizona State University professor and former Arizona Corporation Commissioner Kris Mayes called the decision a "radical departure from existing policy."

“It really violated every principal of gradualism that is important in rate-making," Mayes said. 

Arizona is no stranger to the fierce fight over solar. Last year, Arizona Public Service withdrew its bid to raise monthly rates for rooftop solar by about $15 for the average customer.

Mayes said such an increase could produce similar fallout as in Nevada, but she believed it will not come to that.

“This commission is going to be a lot smarter about making any changes to the net-metering policy. Many many people are adopting solar, and we need to give them some certainty going forward,” Mayes said. 

APS has filed data with the ACC showing that solar customers only pay 36 percent of what it takes to supply them power. 

Arizona commissioners are expected to consider new rates for APS rooftop solar customers this year.

Meanwhile, a solar industry advocacy group and the Bureau of Consumer Protection, part of the Nevada Attorney General's Office, have requested Nevada's commission halt the new rates. The commission will consider that request on Wednesday.