Arizona
Incentives/Policies for Renewables & Efficiency
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Last DSIRE Review: 05/01/2009
| Incentive Type: |
Net Metering |
| State: |
Arizona |
| Eligible Renewable/Other Technologies: |
Solar Thermal Electric,
Photovoltaics,
Landfill Gas,
Wind,
Biomass,
Hydroelectric,
Geothermal Electric,
Municipal Solid Waste,
CHP/Cogeneration,
Hydrogen,
Biogas,
Anaerobic Digestion,
Small Hydroelectric,
Fuel Cells using Renewable Fuels
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| Applicable Sectors: |
Commercial,
Industrial,
Residential,
Nonprofit,
Schools,
Local Government,
State Government,
Institutional
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| Applicable Utilities: | Investor-owned utilities, electric cooperatives
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| System Capacity Limit: | System must be sized to meet all or part of customer’s electric load and may not exceed 125% of the customer’s total connected load
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| Aggregate Capacity Limit: | No limit specified
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| Net Excess Generation: | Credited to customer's next bill at retail rate; excess reconciled annually at avoided-cost rate
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| REC Ownership: | Customer owns RECs (must be relinquished to utility in exchange for distributed generation payments)
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| Meter Aggregation: | Not addressed
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Authority 1:
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ACC R14-2-2301 et seq.
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| Date Enacted: | 10/16/2008 |
| Date Effective: | 10/16/2008 (utility tariffs take effect in mid-2009) |
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Summary:
Note: This summary describes net metering rules adopted by the Arizona Corporation Commission (ACC) in October 2008, and approved by the Attorney General in March 2009. The new rules took effect in May 2009 and utilities have 120 days to file new net metering tariffs. The ACC then must approve these tariffs before they take effect. Under the new state rules, which will apply to all investor-owned electric utilities and cooperative utilities in the state,* net metering is available to customers who generate electricity using solar, wind, hydroelectric, geothermal, biomass, biogas, combined heat and power (CHP), or fuel cell technologies.
Under Arizona's rules, net metering is available to customers who generate electricity using solar, wind, hydroelectric, geothermal, biomass, biogas, combined heat and power (CHP) or fuel cell technologies. The ACC did not set a firm kilowatt limit on system size capacity, as is found in most other states’ net metering policies. Instead, systems must be sized to meet all or part of a customer’s electric load in that the system may not exceed 125% of the customer’s total connected load. If there is no available load data for the customer, the generating system may not exceed the customer’s electric service drop capacity. Additionally, the ACC did not set an aggregate capacity limit for all net-metered systems in a utility’s territory. The utility must instead demonstrate to the ACC why such a cap should be allowed.
The ACC requires that net metering charges be assessed on a non-discriminatory basis. Any new or additional charges that would increase an eligible customer-generator's costs beyond those of other customers in the rate class to which the eligible customer-generator would otherwise be assigned must be proposed to the ACC for consideration and approval.
Net metering is accomplished using a single bi-directional meter. Any customer net excess generation (NEG) will be carried over to the customer's next bill at the utility's retail rate, as a kilowatt-hour (kWh) credit. Any NEG remaining at the customer’s last monthly bill in a calendar year will be paid to the customer, via check or billing credit, at the utility’s avoided cost payment.
For customers taking service under a time-of-use rate, off-peak generation will be credited against off-peak consumption, and on-peak generation will be credited against on-peak consumption. The customer’s monthly bill is based on the net on-peak kWh and net off-peak kWh amounts. Any monthly customer NEG will be carried over to the customer's next bill as an off-peak or on-peak kWh credit.
Under the ACC rules, each utility must file an annual report listing the net metered facilities and their installed capacity for the previous calendar year.
* SRP and municipal utilities do not fall under the jurisdiction of the ACC, and therefore are not subject to the state rules.
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Contact:
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Barbara Keene
Arizona Corporation Commission
1200 W. Washington St.
Phoenix, AZ 85007
Phone: (602) 542-0853
Fax: (602) 364-2270
E-Mail: bkeene@azcc.gov
Web Site: http://www.azcc.gov
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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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