Arizona

Incentives/Policies for Renewables & Efficiency

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APS - Renewable Incentive Program

Last DSIRE Review: 05/12/2009

Incentive Type:	Utility Rebate Program
State:	Arizona
Eligible Renewable/Other Technologies:	Solar Water Heat, Solar Space Heat, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Geothermal Heat Pumps, Solar HVAC, Solar Pool Heating, Daylighting, Anaerobic Digestion, Small Hydroelectric, Other Distributed Generation Technologies
Applicable Sectors:	Commercial, Residential
Incentive Amount:	PV incentives may be de-rated based on expected performance Grid-tied residential PV: $3/watt DC Off-grid residential PV (less than 5 kW): $2/watt DC; Grid-tied non-residential PV: $2.50/watt DC or production-based incentive (PBI) Off-grid non-residential PV: $1.50/W DC or PBI Residential/small solar water heating: $0.75/kWh of estimated first-year savings Commercial/large solar water heating and solar HVAC systems: production based incentive Solar Daylighting: $0.20/kWh estimated first year savings Other renewables: performance-based incentive
Maximum Incentive:	PV: 50% of project costs. Up-front incentive payment is limited to $75,000 SWH: 50% of system costs
Eligible System Size:	No size restrictions for grid-connected systems specified; Less than 5 kW for off-grid systems. Under the small SWH system incentive, systems must have OG-300 ratings of 10,000 kWh per year energy savings. "Large" SWH systems have minimum 5,000 kWh/yr. estimated energy savings
Equipment Requirements:	SWH systems must be certified to SRCC OG-300 standards
Installation Requirements:	PV systems must be installed by a licensed contractor holding one or more of the following certifications with the Arizona Registrar of Contractors: C-11, K-11, L-11. SWH systems must be installed by a licensed contractor holding one or more of the following certifications with the Arizona Registrar of Contractors, C-37, C-37R, K-77, K-78, L-77, L-78.
Program Budget:	2008 Budget: $6,650,000. Includes $5M for residential installations and $1.65M to non-residential installations. Additional residential funds may be available later in the year.
Ownership of Renewable Energy Credits:	APS
Web Site:	http://www.aps.com/ main/green/choice/choice_23.html?source=hme

Summary:
Through the Renewable Incentive Program, Arizona Public Service (APS) offers customers who install various renewable energy sources the opportunity to sell the credits associated with the energy generated to APS. Previously, APS only provided incentives for solar technologies, but they expanded the list of qualified renewables in 2008 to include all technologies eligible for Arizona's Renewable Energy Standard (RES). The solar technologies eligible for a rebate include photovoltaic (PV), solar hot water, solar HVAC and solar daylighting systems. Up-front incentives for PV may be de-rated based on expected performance. Renewable energy systems are eligible for the following credit amounts:

Grid-tied residential PV: $3/watt DC, adjusted based on expected performance; No system size limit.
Grid-tied non-residential PV: $2.50/watt DC; or commercial customers may opt for a production-based incentive (PBI) on a 10-, 15- or 20-year contract.
Off-grid residential PV: $2/watt DC; System must be less than 5 kW.
Off-grid non-residential PV: $1.50/W or PBI
Solar hot water systems (residential and non-residential): Rebate amounts for small systems are based upon an estimate of first-year energy savings at $0.75/kWh based on OG-300 ratings, up to 50% of the system's cost. The incentive structure for large SWH systems is based on actual performance, and can range between $0.051/kWh-equivalent and $0.07/kWh-equivalent depending on the length of the contract. Incentives are limited to 50% of total system cost.
Solar HVAC systems (non-residential only):The incentive for the thermal energy delivered for cooling by a solar HVAC system is based on actual performance and ranges between $0.12/kWh-equivalent and $0.16.kWh equivalent. In addition, systems that incorporate solar thermal heating and/or solar thermal water heating are eligible for the large solar water heating PBI.
Solar Daylighting (non-residential only): $0.20/kWh anticipated first year savings.
Other solar technologies (non-residential only): PBI amount varies by contract length and technology.
Grid-tied wind systems (residential and non-residential):$2.50/W up to 50% of the system cost or $75,000; non-residential systems may opt for the PBI
Off-grid wind systems (residential and non-residential):$2.00/W up to 50% of the system cost or $75,000; non-residential systems may opt for the PBI
Other renewables installed by non-residential customers can apply to receive a PBI. APS will evaluate the project to determine if it is able to qualify renewable energy incentives.

APS recently established a net metering pilot program for systems of 100 kW-DC or less. Click here for more information.

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

APS is purchasing solar credits and renewable energy certificates to help the company meet the state's Renewable Energy Standard (RES). Participating customers receive a one-time rebate or receive an incentive based on system output or kWh savings. APS will have access to the credits for the life of the RES program.

Contact:

Credit Purchase Program Customer Service Line
Arizona Public Service Company
Solar Energy Services
Mail Station 3161
P.O. Box 53933
Phoenix, AZ 85072-3999
Phone: (602) 328-1924
Fax: (602) 250-2724
E-Mail: renewables@aps.com

Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.