Utility Incentives for Solar Utility Incentives for Solar Energy in ArizonaEnergy in Arizona

Arizona Public Service - EPS Arizona Public Service - EPS Credit Purchase ProgramCredit Purchase Program

Incentive Type:Incentive Type: Utility Rebate Program Utility Rebate Program Eligible Renewable/Other Technologies: Eligible Renewable/Other Technologies:

Solar Water Heat, Photovoltaics Solar Water Heat, Photovoltaics Applicable Sectors: Applicable Sectors: Commercial, Commercial,

ResidentialResidential Rebate: Rebate:

Grid-tied: $4/W up to 50% of eligible costs; Grid-tied: $4/W up to 50% of eligible costs; Off-grid (<5 kW) $2/W; Off-grid (<5 kW) $2/W; Solar Water Heating: $700Solar Water Heating: $700

Website:Website:http://www.aps.com/my_community/Solhttp://www.aps.com/my_community/Solar/solar_35.htmlar/solar_35.html

APS information current as of November 18, 2005APS information current as of November 18, 2005

APS Program - summaryAPS Program - summary

Arizona Public Service (APS) offers customers who Arizona Public Service (APS) offers customers who install photovoltaic and solar hot water systems the install photovoltaic and solar hot water systems the opportunity to sell the credits associated with the opportunity to sell the credits associated with the energy generated to APS. energy generated to APS. For grid-tied photovoltaic systems of any size, the credit For grid-tied photovoltaic systems of any size, the credit

amount is $4/Watt-DC up to 50% of installed cost. amount is $4/Watt-DC up to 50% of installed cost. For off-grid photovoltaic systems, which must be less than For off-grid photovoltaic systems, which must be less than

5 kW, the credit amount is $2/Watt-DC. 5 kW, the credit amount is $2/Watt-DC. For solar hot water systems, credit amounts are $700 per For solar hot water systems, credit amounts are $700 per

installation. installation. Funds are assigned through a reservation process. Funds are assigned through a reservation process. All necessary forms can be downloaded from the All necessary forms can be downloaded from the

program website. program website. my_community/Solar/solar_35.htmlmy_community/Solar/solar_35.html    

APS - SummaryAPS - Summary

APS is purchasing solar credits to help the company APS is purchasing solar credits to help the company meet the state's Environmental Portfolio Standard, which meet the state's Environmental Portfolio Standard, which encourages APS to generate 1.1 percent of its energy encourages APS to generate 1.1 percent of its energy through renewable sources, 60 percent through solar.through renewable sources, 60 percent through solar.

Participating customers receive a one-time EPS Energy Participating customers receive a one-time EPS Energy Purchase Credit (based on the manufacturer’s rating) for Purchase Credit (based on the manufacturer’s rating) for purchasing and installing systems. APS will have access purchasing and installing systems. APS will have access to the credits for the life of the EPS program. to the credits for the life of the EPS program.

APS has recently committed additional EPS funds of APS has recently committed additional EPS funds of $1,000,000 toward the residential credit purchase $1,000,000 toward the residential credit purchase program, and $1,000.000 toward the commercial credit program, and $1,000.000 toward the commercial credit purchase program for 2005. This brings the overall total purchase program for 2005. This brings the overall total for 2005 to $4,250,000.     for 2005 to $4,250,000.    

APS Program – Qualifications APS Program – Qualifications PVPV

Customers must purchase a new photovoltaic Customers must purchase a new photovoltaic solar system. solar system.

Installations must meet APS interconnection Installations must meet APS interconnection requirements and customers must sign an requirements and customers must sign an interconnection agreement with APS. interconnection agreement with APS.

The system must use UL-rated components and The system must use UL-rated components and meet IEEE 929 specifications. meet IEEE 929 specifications.

A licensed contractor must install the system.A licensed contractor must install the system. The system generation must be metered The system generation must be metered

separately and the kWh credits may, at APS' separately and the kWh credits may, at APS' option, be recorded annually. option, be recorded annually.

The meter (not provided by APS) must be placed The meter (not provided by APS) must be placed adjacent to the existing meter and marked "solar adjacent to the existing meter and marked "solar meter".meter".

APS Program APS Program Qualifications Solar WaterQualifications Solar Water

The hot water system must replace an electric water heater. The hot water system must replace an electric water heater. The system owner must sign an agreement assigning rights to the The system owner must sign an agreement assigning rights to the

EPS credits associated with output. EPS credits associated with output. The system must have obtained certification under the Solar Rating The system must have obtained certification under the Solar Rating

and Certification Corporation’s OG-300 system rating test. Solar and Certification Corporation’s OG-300 system rating test. Solar thermal collectors for commercial and large residential systems must thermal collectors for commercial and large residential systems must have obtained the Solar Rating and Certification Corporation’s OG-have obtained the Solar Rating and Certification Corporation’s OG-100 rating. 100 rating.

Commercial systems must be designed in accordance with ASHRAE Commercial systems must be designed in accordance with ASHRAE design standards. design standards.

The system design and installation must meet all applicable UPC The system design and installation must meet all applicable UPC requirements. The system must meet all state and local building requirements. The system must meet all state and local building codes.codes.

The system must be successfully inspected by the building official The system must be successfully inspected by the building official having jurisdiction. Proof of inspection must be provided to APS. having jurisdiction. Proof of inspection must be provided to APS.

The solar panels must be substantially unshaded during peak sun The solar panels must be substantially unshaded during peak sun hours. hours.

The installer must be licensed, bonded and insured.The installer must be licensed, bonded and insured.

Salt River ProjectSalt River ProjectEarthWise Solar EnergyEarthWise Solar Energy

Incentive Type: A rebate program designed to help reduce Incentive Type: A rebate program designed to help reduce the cost of installing a new solar PV or solar water heating the cost of installing a new solar PV or solar water heating system for homes and businesses system for homes and businesses 

PhotovoltaicsPhotovoltaics Rebate of $3/watt, up to 3 kW for residential systems Rebate of $3/watt, up to 3 kW for residential systems Rebate of $3/watt, up to 10 kW for commercial systems Rebate of $3/watt, up to 10 kW for commercial systems Must be UL listed and located in SRP service territory Must be UL listed and located in SRP service territory 

Solar water heating Solar water heating SRP offers a payment of $750SRP offers a payment of $750 Must of OG-300 rated and located in SRP service territory Must of OG-300 rated and located in SRP service territory

All new solar systems must be installed by a licensed All new solar systems must be installed by a licensed contractor contractor

In exchange for payment, the customer allows SRP to retain In exchange for payment, the customer allows SRP to retain the green energy credits for the system the green energy credits for the system

Payments are set to decrease to $2.70/watt, beginning Payments are set to decrease to $2.70/watt, beginning 1/1/2007 and will continue to decrease at $0.30/watt each 1/1/2007 and will continue to decrease at $0.30/watt each year until 2010 year until 2010

For more information or to download applications: For more information or to download applications: www.srpnet.comwww.srpnet.com/solar/solar    SRP information current as of November 18, SRP information current as of November 18,

20052005

Tucson Electric Power Tucson Electric Power SunShare SummarySunShare Summary

Incentive Type: Utility Rebate Program Incentive Type: Utility Rebate Program Eligible Renewable/Other Technologies: Eligible Renewable/Other Technologies:

Photovoltaics from 1kW to 10kW in sizePhotovoltaics from 1kW to 10kW in size Applicable Sectors: Commercial, Residential Applicable Sectors: Commercial, Residential Rebate: Rebate:

$2,000 per AC kW ($2/watt) $2,000 per AC kW ($2/watt) $2,700 per DC kW ($2.70/watt)$2,700 per DC kW ($2.70/watt)

Website:Website:http://www.greenwatts.com/pages/sunshare.htmlhttp://www.greenwatts.com/pages/sunshare.html

TEP information current as of November 18, 2005TEP information current as of November 18, 2005

TEP – SunShare OptionsTEP – SunShare Options Option 1 - TEP will provide a rebate of $2,000 per kW of Option 1 - TEP will provide a rebate of $2,000 per kW of

verified AC output for photovoltaic systems purchased on verified AC output for photovoltaic systems purchased on your own.your own.

Option 2 - Customers receive a $2,000 discount on a 1-kW AC Option 2 - Customers receive a $2,000 discount on a 1-kW AC output photovoltaic kit purchased from TEP. The kit includes output photovoltaic kit purchased from TEP. The kit includes panels, inverter, supports, meter, and meter socket.panels, inverter, supports, meter, and meter socket.

Option 3 - Customers purchase their own photovoltaic Option 3 - Customers purchase their own photovoltaic equipment and the rebate amount is based on the installed equipment and the rebate amount is based on the installed solar generating capacity, or DC capacity. With this option solar generating capacity, or DC capacity. With this option TEP will provide a rebate of up to $2,700 per kW of rated DC TEP will provide a rebate of up to $2,700 per kW of rated DC solar generating capacity. To receive the higher rebate, the solar generating capacity. To receive the higher rebate, the system must be operational within 180 days after receipt of the system must be operational within 180 days after receipt of the agreement (systems are reserved for 180 days until the 200 agreement (systems are reserved for 180 days until the 200 kW ceiling is reached in each year). The rebate amount will be kW ceiling is reached in each year). The rebate amount will be $2,700 per kW of DC capacity in 2005 and up to $2,400 per $2,700 per kW of DC capacity in 2005 and up to $2,400 per kW of DC capacity in 2006.kW of DC capacity in 2006.

TEP SunShareTEP SunShare

SunShare program cap is 200 kW calculated on an AC basis, SunShare program cap is 200 kW calculated on an AC basis, which is about 300 kW on a DC basis (this is the APS or SRP which is about 300 kW on a DC basis (this is the APS or SRP equivalent measure). equivalent measure).

SunShare customers assign their environmental credits to TEP SunShare customers assign their environmental credits to TEP through 2012 for Option 1 and 2 or through 2016 for Option through 2012 for Option 1 and 2 or through 2016 for Option 3.  The customer is free to sell their credits on the REC market 3.  The customer is free to sell their credits on the REC market after those dates.  (This factor in some measure accounts for after those dates.  (This factor in some measure accounts for the subsidy amount differences between the utilities.) the subsidy amount differences between the utilities.)

TEP offers true net metering to all solar and wind systems of TEP offers true net metering to all solar and wind systems of capacity up to 10 kW AC.  capacity up to 10 kW AC. 

There is a system-wide cap of 500 kW AC on this program, There is a system-wide cap of 500 kW AC on this program, currently subscribed at about 120 kW AC. currently subscribed at about 120 kW AC. 

TEP – Outside SunShareTEP – Outside SunShare

Outside the SunShare program,  PV systems larger than 10 kW Outside the SunShare program,  PV systems larger than 10 kW AC capacity are eligible for a negotiated subsidy payment and AC capacity are eligible for a negotiated subsidy payment and we have 103 kW DC rated capacity of those in our system we have 103 kW DC rated capacity of those in our system now, and have had discussions for at least 2 MW more now, and have had discussions for at least 2 MW more capacity. capacity. 

Those larger systems are not included in the annual 200 kW Those larger systems are not included in the annual 200 kW AC program cap.  AC program cap. 

The installations can be residential or commercial.  The installations can be residential or commercial.  TEP also offers a community based GreenWatts subsidized TEP also offers a community based GreenWatts subsidized

program for community based facilities that can pay the full program for community based facilities that can pay the full cost of material and labor for qualifying installations.  cost of material and labor for qualifying installations.  Schools, museums and other non profit organizations benefit Schools, museums and other non profit organizations benefit from this program.  These installations are also outside the from this program.  These installations are also outside the SunShare program and its annual capSunShare program and its annual cap..