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APS – Renewable Energy Incentive Program
| State: | Arizona |
| Incentive Type: | Utility Rebate Program |
| Eligible Renewable/Other Technologies: | Solar Water Heat, Solar Space Heat, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Geothermal Heat Pumps, Solar HVAC, Solar Pool Heating, Daylighting, Anaerobic Digestion, Small Hydroelectric, Other Distributed Generation Technologies |
| Applicable Sectors: | Commercial, Residential |
| Amount: | PV incentives may be de-rated based on expected performance Grid-tied residential PV: $0.60watt; see below for more information Off-grid residential PV (less than 5 kW): $1.50/watt DC; Grid-tied non-residential PV up to 30 kW: $1.75/W Grid-tied non-residential PV over 30 kW: production-based incentive (PBI) Off-grid non-residential PV: $1.35/W DC or PBI Residential/small solar water heating: $0.50/kWh of estimated first-year savings Non-residential solar water heating: up to $0.75/kWh of estimated first-year savings Large solar water heating and solar HVAC systems: production based incentive Solar Daylighting: $0.20/kWh estimated first year savings Grid-tied wind systems (residential and non-residential):$2.25/W Off-grid wind systems (residential and non-residential):$1.80/W Other renewables: performance-based incentive |
| Maximum Incentive: | PV: 50% of project costs. Up-front incentive payment is limited to $75,000 SWH: 50% of system costs |
| Eligible System Size: | Minimum for off-grid systems: 5 kW Maximum for large PV: 2 MW Under the small SWH system incentive, systems must have OG-300 ratings of 10,000 kWh per year energy savings. “Large” SWH systems have minimum 5,000 kWh/yr. estimated energy savings |
| Equipment Requirements: | SWH systems must be certified to SRCC OG-300 standards |
| Installation Requirements: | PV systems must be installed by a licensed contractor holding one or more of the following certifications with the Arizona Registrar of Contractors: C-11, K-11, L-11. SWH systems must be installed by a licensed contractor holding one or more of the following certifications with the Arizona Registrar of Contractors, C-37, C-37R, K-77, K-78, L-77, L-78. |
| Ownership of Renewable Energy Credits: | APS |
| Funding Source: | RES Surchage |
| Web Site: | http://www.aps.com/main/green/choice/choice_23.html?source=hme |
Through the Renewable Incentive Program, Arizona Public Service (APS) offers customers who install various renewable energy sources the opportunity to sell the credits associated with the energy generated to APS. Previously, APS only provided incentives for solar technologies, but they expanded the list of qualified renewables in 2008 to include all technologies eligible for Arizona’s Renewable Energy Standard (RES). The solar technologies eligible for a rebate include photovoltaic (PV), solar hot water, solar HVAC and solar daylighting systems. Up-front incentives for PV may be de-rated based on expected performance. Renewable energy systems are eligible for the following credit amounts:
- Grid-tied PV (residential): $.60
- Grid-tied PV (non-residential): Upto $1.75
- Off-grid PV (residential): $1.50
- Off-grid PV (non-residential): $1.35
- Solar hot water systems (residential): $0.50/kWh estimated first-year energy savings based on OG-300 ratings, up to 50% of the system’s cost.
- Solar hot water systems (commercial): Up to $0.75/kWh estimated first-year energy savings based on OG-300 ratings for small systems. For large SWH systems, customers can receive $0.45/kWh estimated first year energy savings, or may choose a 10, 15 or 20 year PBI. Incentives are limited to 50% of total system cost.
- Solar HVAC systems (non-residential only):The incentive for the thermal energy delivered for cooling by a solar HVAC system is based on actual performance and ranges between $0.12/kWh-equivalent and $0.16.kWh equivalent. In addition, systems that incorporate solar thermal heating and/or solar thermal water heating are eligible for the large solar water heating PBI.
- Solar Daylighting (non-residential only): $0.20/kWh anticipated first year savings.
- Other solar technologies (non-residential only): PBI amount varies by contract length and technology.
- Grid-tied wind systems (residential and non-residential):$2.25/W up to 50% of the system cost or $75,000; non-residential systems may opt for the PBI
- Off-grid wind systems (residential and non-residential):$1.80/W up to 50% of the system cost or $75,000; non-residential systems may opt for the PBI
- Other renewables installed by non-residential customers can apply to receive a PBI. APS will evaluate the project to determine if it is able to qualify renewable energy incentives.
APS recently established a net metering pilot program for systems of 100 kW-DC or less. Click here for more information.
Funds are assigned through a reservation process. All necessary forms can be downloaded from the program website.
APS is purchasing solar credits and renewable energy certificates to help the company meet the state’s Renewable Energy Standard (RES). Participating customers receive a one-time rebate or receive an incentive based on system output or kWh savings. APS will have access to the credits for the life of the RES program.
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