Why Solar by BrandalJaclson


									                   Solar Policy in AZ

                               Tom Alston
Director of Businesses and Policy Development for American Solar Electric
                        Solar Alliance State Lead
  2009  Incentive Programs and Funding
  Current Amount of Solar in AZ
  Rates
  Policy Basics
  Upcoming Policies
 Utility Incentives
 Tax Incentives
   Utility Incentives
Incentives                              APS                         TEP                 SRP TRICO
Up-Front Incentives Per Watt            $3.00                       $3.00               $3.00 $4.00
10-year PBI with 20Year REC Agreement
10-Year PBI                             up to $.202 / kWh           up to $.202 / kWh   N/A
15-Year PBI                             up to $.187 / kWh           up to $.187 / kWh   N/A
20-Year PBI                             up to $.180 / kWh           up to $.180 / kWh   N/A
Up-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 Info
System Size 6.3 kW

Installed Price                                                 $44,050             $44,050
APS/SRP Rebate (Covered Upfront)                                $18,900             $18,900
State Personal Income Tax Credit                                 $1,000              $1,000
Federal Personal Income Tax Credit                               $2,000             $12,914
Installed Price After Incentives                                $22,150             $11,236

Savings with APS per Year                                       $1,384              $1,384
Savings with SRP per Year                                       $1,107              $1,107
Area required fro solar (Flat Roof)                           750 Sq Ft           750 Sq Ft
Est. First Year Cumulative kWh Generated                       216,180             216,180
Est. Twenty year Cost per kWh                                   $0.100              $0.052
 Utility funds for Renewable Energy in Millions of Dollars

                                        Funds to be            Funds to be
                                    Collected by Utilities Collected by Utilities
        Funds Collected by Utilities for RES Program       for RES Program in
          for RES Program 2007              2008                   2009
APS                              11                    33                    78
TEP                               2                    15                    29
SRP                               4                     4                     4
Total                            17                    52                   111

                       Funds Collected by Utilities
                       for the Distributed Generation
                       Portion of the REST in 2009
         APS                                        65
         TEP                                        21
         SRP                                       3.8
         Total                                    89.8
 The Renewable Energy Standard and Tariff (REST)
   The Primary Reason There is Solar in Arizona

          Percentage of
                                                                     Percentage of
        Energy Production Number of Solar Homes that
       APS and TEP must Need To be Installed by APS               Energy Production
       get from Renewable   in Current Year to Meet               APS and TEP must
Year         Sources             Requirement                      get from Renewable
2006           1.25                   NA                  Year          Sources
2007            1.5                   NA                  2017              7
                            1838 (Less than half the      2018              8
2008          1.75            Goal Was Achieved)          2019              9
2009            2                    4000
                                                          2020             10
2010           2.5
                                                          2021             11
2011            3
2012           3.5                                        2022             12
2013            4                                         2023             13
2014           4.5                                        2024             14
2015            5                                      After 2024          15
2016            6
Current Legislation and Regulatory
 State Legislature
 Overall Industry Goals
         The Arizona Corporation Commission
Paul Newman          Bob Stump        Kris Mayes       Gary Pierce   Sandra Kennedy
Commissioner        Commissioner      Chairman        Commissioner   Commissioner

               •New Policies
                   •Solar Friendly Rate Design?
                   •Utility Performance Incentives?
     Net Metering TEP, APS, Co-Ops
   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
Arizona State Legislature

   Rep. Reagan      Rep. Boone     Rep. Leff

  Rep. Lucy Mason   Rep. Chad Campbell     Rep. Farley
    Permit Cap for residential grid-tied solar systems in Cities,
                        Towns, and Counties

   Reduce excessively high fees imposed by cities and counties to
    permit roof-top solar systems
   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
                     Enabling Solar Schools

   Changes rules and allows schools to voluntarily engage in long term
    renewable energy service agreements and energy efficiency performance
   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
Objectives of Solar Alliance

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