solar policy in az
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Solar Policy in AZ. Tom Alston Director of Businesses and Policy Development for American Solar Electric Solar Alliance State Lead [email protected]. Overview. 2009 Incentive Programs and Funding Current Amount of Solar in AZ Rates Policy Basics Upcoming Policies. Incentives. - PowerPoint PPT PresentationTRANSCRIPT
Solar Policy in AZ
Tom Alston Director of Businesses and Policy Development for American Solar Electric
Solar Alliance State [email protected]
Overview
2009 Incentive Programs and FundingCurrent Amount of Solar in AZRatesPolicy BasicsUpcoming Policies
Incentives
Utility Incentives Tax Incentives
Utility Incentives
Incentives APS TEP SRP TRICOResidentialUp-Front Incentives Per Watt $3.00 $3.00 $3.00 $4.00Non-Residential10-year PBI with 20Year REC Agreement10-Year PBI up to $.202 / kWh up to $.202 / kWh N/A15-Year PBI up to $.187 / kWh up to $.187 / kWh N/A20-Year PBI up to $.180 / kWh up to $.180 / kWh N/AUp-Front Incentives $ 2.50 per watt up to 50% $2.50 $2.50
A typical residential solar system would consist of 30 solar panels and be rated at 6000 Watts of capacity. This system would be eligible for $18,000 in incentives from utilities.
Federal and State Tax Incentives
Recent Passage of Investment Tax Credit Dramatically Reduced the Price of Residential Solar
Before Passage of Solar Investment Tax Credit (Included in Bailout Package) After Passage
System InfoSystem Size 6.3 kW
Installed Price $44,050 $44,050APS/SRP Rebate (Covered Upfront) $18,900 $18,900State Personal Income Tax Credit $1,000 $1,000Federal Personal Income Tax Credit $2,000 $12,914Installed Price After Incentives $22,150 $11,236
Savings with APS per Year $1,384 $1,384Savings with SRP per Year $1,107 $1,107Area required fro solar (Flat Roof) 750 Sq Ft 750 Sq FtEst. First Year Cumulative kWh Generated 216,180 216,180Est. Twenty year Cost per kWh $0.100 $0.052
Utility funds for Renewable Energy in Millions of Dollars
Funds Collected by Utilities for RES Program 2007
Funds to be Collected by Utilities
for RES Program 2008
Funds to be Collected by Utilities for RES Program in
2009
APS 11 33 78TEP 2 15 29SRP 4 4 4Total 17 52 111
Funds Collected by Utilities for the Distributed Generation Portion of the REST in 2009
APS 65TEP 21SRP 3.8Total 89.8
The Renewable Energy Standard and Tariff (REST)The Primary Reason There is Solar in Arizona
Year
Percentage of Energy Production APS and TEP must get from Renewable
Sources2017 72018 82019 92020 102021 112022 122023 132024 14
After 2024 15
Year
Percentage of Energy Production APS and TEP must
get from Renewable Sources
Number of Solar Homes that Need To be Installed by APS
in Current Year to Meet Requirement
2006 1.25 NA2007 1.5 NA
2008 1.751838 (Less than half the
Goal Was Achieved)2009 2 40002010 2.52011 32012 3.52013 42014 4.52015 52016 6
Current Legislation and Regulatory Changes ACC State Legislature Overall Industry Goals
The Arizona Corporation Commission
Sandra Kennedy
Commissioner
Gary Pierce
Commissioner
Kris Mayes
Chairman
Paul Newman
Commissioner
Bob Stump
Commissioner
•New Policies•Solar Friendly Rate Design?•Utility Performance Incentives?•Other?
Older systems will be able to switch to Net Metering System Size Caps for Net Metering
“125% of the Net Metering Customer's total connected load, or in the absence of customer load data, capacity less than or equal to the Customer's electric service drop capacity”
Full retail value for net excess over the course of the billing cycle with monthly roll-over, true for TOU plans as well
Net excess remaining at the end of the year will be paid out in the form of a check at avoided costs
Net Metering TEP, APS, Co-Ops Cont.
Arizona State Legislature
Rep. Lucy Mason Rep. Chad Campbell Rep. Farley
Rep. BooneRep. Reagan Rep. Leff
Permit Cap for residential grid-tied solar systems in Cities, Towns, and Counties
OVERVIEW Reduce excessively high fees imposed by cities and
counties to permit roof-top solar systems PROVISIONS Would limit the total fees associated with obtaining a full
permit for a solar system, from cities and towns to install solar system to no more than: $100 for Residential solar hot water systems $300 for Residential grid-tied solar photovoltaic systems
OVERVIEW: Changes rules and allows schools to voluntarily engage in long
term renewable energy service agreements and energy efficiency performance contracts
PROVISIONS Allows schools to retain cost savings associated with energy
efficiency and renewable energy production Expands definition of eligible “Cost Saving Measures” for schools Enables school governing boards to enter into energy performance
or renewable energy power purchase contracts without holding elections
Allows school districts to establish an energy and water savings account that will provide schools with financial flexibility in executing long term renewable energy and energy efficiency contracts
Enabling Solar Schools
Objectives of Solar Alliance