Arizona
Incentives/Policies for Renewables & Efficiency
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Last DSIRE Review: 05/12/2009
| Incentive Type: |
Utility Rebate Program |
| State: |
Arizona |
| Eligible Renewable/Other Technologies: |
Solar Water Heat,
Solar Space Heat,
Photovoltaics,
Landfill Gas,
Wind,
Biomass,
Geothermal Electric,
Solar Pool Heating,
Daylighting,
Anaerobic Digestion,
Small Hydroelectric
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| Applicable Sectors: |
Commercial,
Residential
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| Incentive Amount: | Up-front incentives for PV may be de-rated based on expected performance
Residential PV: $3.00/W-DC or performance-based incentive for on-grid systems, $2.00/W-DC for off-grid systems;
Non-Residential PV: $2.50/W-DC or performance based incentive for on-grid systems, $0.121/kWh of estimated annual production for off-grid systems;
Wind: $2.50/W-AC for on-grid systems, $2.00/W-AC for off-grid systems; or a performance-based incentive
Daylighting (non-residential only): $0.20 per kWh savings for 5 years;
Residential Solar Water Heater: $0.25/kWh-equivalent, plus $750 up to a maximum amount of $1,750, or performance-based incentive;
Non-Residential Solar Water Heater: performance base incentive;
All other eligible technologies can receive performance based incentives which vary depending on the technology and the length of the contract. Contract options for performance-based incentives are 10, 15 and 20 years. |
| Maximum Incentive: | Residential PV systems greater than 20 kW AC will receive rebates on the first 20 kW AC only
TEP incentive for PV can not exceed 60% of the total project cost.
TEP incentive for PV may be combined with other state and federal incentives, but combined they can not pay for more than 85% of the total project cost |
| Eligible System Size: | PV: Minimum size is 1.2 kW. |
| Equipment Requirements: | Photovoltaic modules must be covered by a manufacturer’s warranty of at least 20 years to qualify for the up-front incentive.
SWH systems must be certified to SRCC OG-300 standards
Eligible small wind systems must be certified and nameplate rated by the CEC.
Wind systems must have at least a 10-year manufacturer’s warranty to qualify for the up-front incentive; wind systems must have at least a 5-year manufacturer’s warranty to qualify for the performance-based incentive
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| Ownership of Renewable Energy Credits: | TEP |
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Web Site: |
http://www.tep.com/Green/
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Summary:
Tucson Electric Power (TEP) created the SunShare Program in 2001 to encourage residential and business customers to install new photovoltaic (PV) equipment. TEP transitioned away from their original incentive structure for PV and added incentives for a variety of other technologies in May 2008 under the new Renewable Energy Credit Purchase Program (RECPP). The technologies now eligible for funding through the RECPP all qualify under Arizona's renewable energy standard (RES). TEP offers these incentives in exchange for the renewable energy certificates they generate. Incentives for the 2009 program year are as follows:- Residential PV (on-grid): $3.00/W up front for qualified systems. Systems with less than a 20 year warranty on the module or a 10 year warranty on the inverter, or with a building-integrated PV (BIPV) system over 5kW must receive the 10, 15 or 20 year performance-based incentive (PBI) which is based on the actual metered electricity output.
- Residential PV (off-grid):$2.00/W
- Non-Residential PV (on-grid):$2.50/W for systems 20kW or less. Systems greater than 20kW must take the PBI
- Non-Residential PV (off-grid): Must take the PBI
- Solar Domestic Water Heating and Solar Space Heating: $0.25/kWh equivalent, plus $750 up to a maximum incentive of $1,750. Or residential customers can elect to receive a 10, 15, or 20 year PBI.
- Non-Residential Solar Water Heating and Solar Space Heating: PBI
- Daylighting (Non-residential only):$0.20/kWh equivalent for 5 years.
- Wind (on-grid): Customers can choose either an upfront incentive of $2.50/W-AC or a PBI ranging from $0.13/kWh to $0.145/kWh depending on the length of the contract.
- Wind (off-grid): Customers can choose either an upfront incentive of $2.00/W-AC or a PBI ranging from $0.104/kWh to $0.116/kWh depending on the length of the contract.
- On-grid small hydro, biomass-biogas systems, pool heating (non-residential only), space cooling, and geothermal (electric, cooling and heating systems) are all eligible to receive PBIs. See program website for full details including contract options, equipment requirements and PBI amounts.
TEP also offers a net metering option which credits the customer for excess energy sent back to the grid.
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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.
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