APS, SRP, TRICO and TEP Incentives

In general, incentives offered by the electric utility companies are decreasing. Due to the demand in 2009, both TRICO and Sulphur Springs electric coops are temporarily out of funds for the one time rebate. Sulphur Springs may not have the money available to pay the one time rebate for 3-4 years. The incentives offered by the utilities vary quite a bit. For example, TRICO will cover up to 40% of the cost of a residential solar system with its' one time incentive, APS 50% and TEP 60%.

TRICO offers a one time incentive up to $3 per installed watt(last year it was $4), up to 40% of the cost of the system, for systems up to 10 kw, for both residential and commercial systems. There is a rebate reservation list, and the wait time is not clear. For systems 10kw or larger, they offer performance based incentives, but are not specific in the rate per kWh.

http://www.trico.coop/index.php/renewable-energy

TEP currently offers $3 per installed watt for grid tied systems, covering up to 60% of the system, and they have the funds available. This is a good deal that customers should take advantage of now. TEP offers $2 per watt for off grid systems. TEP has made changes to their commercial solar incentive that have not yet been published. We expect to have that information later this week.http://www.tep.com/Green/

APS offers a rebate of $3 per installed DC watt for grid tied systems, and $2 per watt for off grid systems in their service area. This up front incentive cannot be more than 50% of the total installed price of the system, not including the savings from federal and state tax credits, and customers must pay at least 15% of the cost of the system, after applying the rebate, federal and all tax credits.http://www.aps.com/main/green/choice/choice_66.html

APS offers commercial customers a choice of an up front rebate or production based incentives. The commercial rates quoted on the APS website are the maximum they might approve. Projects requesting less than the maximum are more likely to be approved. A competent solar installation contractor can negotiate with APS for you. Please consult the attached APS website pages for more details explaining the non-residential solar incentives they offer http://www.aps.com/main/green/choice/choice_67.html

SRP offers less in incentives to residential customers than APS. They are currently offering $2.70 per watt, up to a maximum of $13,500, through April 30, 2010. SRP offers $2.25 per watt up front incentive for commercial systems less than 50 kw, with a $112,500 maximum. See the table on this attached web page from SRP which details the rate schedule through April 30, 2015. All incentives, maximum amounts, one time and performance based are going down each fiscal year through April 20, 2015 http://www.srpnet.com/environment/earthwise/solar/newstructure0110.aspx

The performance based incentives, or PBIs, offered by the electric companies are generally for commercial installations, and will be explained in detail in a future blog post.

In the next blog post we will look at other factors to consider in deciding if a solar electric system is right for you.

Why Do Governmment and Electric Companies Supplement Solar Installations?

The benefits of solar and other renewable energy from the point of view of the United States and Arizona governments are many. Following are the reasons why they offer federal and state tax credits to supplement the cost of solar installations, and why Arizona passed a law that caused the electric utility companies to offer incentives.

Energy Security- Americans are too dependent on foreign oil. Politics, war and other events beyond our control can cause scarcity or temporary shortages of oil. The prices of oil and natural gas are constantly fluctuating, going up more than down. Oil, natural gas and even coal are finite natural resources. Large power plants are dependent on infrastructure, especially power transmission lines. The sun is expected to keep on producing energy for billions of years, and you can have a solar system producing electricity on your own roof or backyard.

Environmental Protection-40% of US carbon emissions come from electricity production. Power plants that burn fossil fuels also produce other pollutants-sulfur dioxide emissions, nitrogen oxide emissions, particulate matter emissions, and more. These pollutants, especially carbon dioxide, contribute to increased greenhouse gases in the atmosphere, and possibly global warming. Solar Systems do not pollute. Also, nuclear and fossil fuel burning power plants, particularly coal burning plants, account for 39% of the fresh water consumption in the United States, 190 million gallons per day. Water is becoming ever scarcer, particularly in the western United States. Solar Electric systems don't use any water.

Economic Revitalization-Installing solar and other renewable energy systems creates jobs-in construction and manufacturing, sorely needed considering the state of the economy.

By state law in Arizona, utility companies subject to the state's Renewable Energy Standard must obtain Renewable Energy Credits (RECs) to meet 15% of their retail electric load by 2025 and thereafter. Solar systems are a source of RECs, and customers who receive rebates or performance based incentives from their electric utility must in turn assign their RECs to the utility for a period of time, often 20 years.

Our next post will explain the rebates and other incentives offered by the larger electric utilities in Arizona.

Arizona Solar Electric

Welcome to the first post in Solar Arizona, brought to you by Arizona Solar and Electric. The purpose of this blog is to let you know how a solar electric, or photovoltaic system can benefit you, and how it will benefit everyone. In time, we will explain the cost, how it works, the specific electric company rebates here in Arizona, the tax credits and other government incentives, and why the electric companies and government entities want you to have a solar system.

There has never been a better time to invest in a photovoltaic system for your home or business-electric company rebates cover up to 60% of the system, federal tax credits cover 30% of the balance(federal tax credits can be spread out over five years), and State of Arizona tax credits cover up to $1000. By Arizona law, there is no state sales tax(transaction privelege tax, as they like to call it) on solar installations.

Our next post will cover why the government and utility companies are offering these incentives.

www.azsolarandelectric.com