Solar Policy in Arizona

1
Solar Policy in Arizona
Tom Alston, Director of Businesses and Policy
Development American Solar Electric Solar
Alliance State Lead tom_at_americanpv.com
2
About American Solar Electric (ASE)

• ASE is an Arizona-based design-build firm
  specializing in Solar Electric Power Systems for
  residential, commercial, and industrial
  applications.
• Our approach brings continuity to your
  solar-electric project and includes system
  design, procurement, installation,
  interconnection and commissioning.
• Our company is responsible for the installation
  of more than 5,000,000 watts of photovoltaic
  power in Arizona.
• ASE is licensed with the Arizona Registrar of
  Contractors for Electrical and Roofing
  Construction Contracting
• K-11 Dual Electrical (168657)
• K-42 Dual Roofing (236520)

3
American Solar Presentation Agenda

• 2009 IS THE YEAR FOR SOLAR
• 2009 Incentive Programs and Funding
• Current Amount of Solar in AZ
• Rates
• Policy Basics
• Upcoming Policies
• Why 2009 is The Year

4
2009 Incentive Programs and Funding

• Utility Incentives
• Tax Incentives

5
Utility Incentives
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.
6
Federal and State Tax Incentives

• Recent Passage of Investment Tax Credit
  Dramatically Reduced the Price of Residential
  Solar

7
Utility Funds for Renewable Energy in Millions
of Dollars
8
The Renewable Energy Standard and Tariff (REST)
REST is the primary reason there is solar in
Arizona. In 2008, the number of solar homes
needed to be installed by APS and TEP to meet the
requirement was 1,838. Less than half the
requirement was achieved. By the end of 2009, in
order to meet the requirement 4,000 homes will
need to have solar electric systems installed.
9
(No Transcript)
10
(No Transcript)
11
Current Legislation and Regulatory Changes

• ACC
• State Legislature
• Overall Industry Goals

12
The Arizona Corporation Commission
Sandra Kennedy Commissioner
Gary Pierce Commissioner
Kris Mayes Chairperson
Paul Newman Commissioner
Bob Stump Commissioner

• New Policies ?
• Solar Friendly Rate Design ?
• Utility Performance Incentives ?
• Other ?

13
Net Metering TEP, APS, Co-Ops Cont.

• 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.

14
Arizona State Legislature
Rep. Boone
Rep. Reagan
Rep. Leff
Rep. Mason
Rep. Campbell
Rep. Farley
Rep. Sinema
15
Upcoming Policies

• 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

16
Upcoming Policies

• Enabling Solar Schools
• 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

17
Objectives of Solar Alliance
18
(No Transcript)
19
Why 2009 is The Year

• Falling Module Prices
• Spanish market drying up
• Net Metering will be in place
• Over 110 Million in incentives
• Cap on Residential Investment Tax Credits has
  been lifted
• First full year of Utility Rest Programs
• Financing options in the works

20
Questions/Answers