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TEP – Renewable Energy Credit Purchase Program
| State: | Arizona |
| Incentive Type: | Utility Rebate Program |
| Eligible Renewable/Other Technologies: | Solar Water Heat, Solar Space Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Solar Pool Heating, Daylighting, Anaerobic Digestion, Small Hydroelectric |
| Applicable Sectors: | Commercial, Residential |
| Amount: | Up-front incentives for PV may be de-rated based on expected performance Residential grid-tied PV: $0.75/W-DC Residential off-grid PV: $0.50/W-DC Non-Residential PV (50 kW or less): $0.75/Watt DC Non-Residential grid-tied PV (more than 50 kW): production-based incentive Wind (grid-tied): $2.25/W-AC Wind (off-grid): $1.80/W-AC or a performance-based incentive Daylighting (non-residential only): $0.18 per kWh savings for 5 years; Residential Solar Water Heater: $0.25/kWh-equivalent, plus $750 up to a maximum amount of $1,750 Non-Residential Solar Water Heater: $0.50/kWh-equivalent, plus $750 Non-Residential Solar Water Heater: performance base incentive; All other eligible technologies can receive performance based incentives which vary depending on the technology and the length of the contract. Contract options for performance-based incentives are 10, 15 and 20 years. |
| Maximum Incentive: | Residential PV systems greater than 20 kW AC will receive rebates on the first 20 kW AC only TEP incentive for PV cannot exceed 60% of the total project cost. TEP incentive for PV may be combined with other state and federal incentives, but combined they cannot pay for more than 85% of the total project cost |
| Eligible System Size: | PV: Minimum size is 1.2 kW. |
| Equipment Requirements: | Photovoltaic modules must be covered by a manufacturer’s warranty of at least 20 years to qualify for the up-front incentive. SWH systems must be certified to SRCC OG-300 standards Eligible small wind systems must be certified and nameplate rated by the CEC. Wind systems must have at least a 10-year manufacturer’s warranty to qualify for the up-front incentive; wind systems must have at least a 5-year manufacturer’s warranty to qualify for the performance-based incentive |
| Ownership of Renewable Energy Credits: | TEP |
| Funding Source: | RES Surchage |
| Web Site: | http://www.tep.com/Green |
2011 funding for up-front incentives was exhausted by September. The Arizona Corporate Commission voted in October to allow an additional $564,500 to be used to fund new PV rebates at reduced levels for the remainder of 2011. All up-front incentives for grid-connected PV will be offered at $0.75 per watt DC.
Tucson Electric Power (TEP) created the SunShare Program in 2001 to encourage residential and business customers to install new photovoltaic (PV) equipment. TEP transitioned away from their original incentive structure for PV and added incentives for a variety of other technologies in May 2008 under the new Renewable Energy Credit Purchase Program (RECPP). The technologies now eligible for funding through the RECPP all qualify under Arizona’s renewable energy standard (RES). TEP offers these incentives in exchange for the renewable energy certificates they generate. Incentives for the 2011 program year are as follows:
- Residential PV (grid-tied): $0.75/W up front for qualified systems. Systems with less than a 20 year warranty on the module or a 10 year warranty on the inverter, or with a building-integrated PV (BIPV) system over 5kW must receive the 10, 15 or 20 year performance-based incentive (PBI) which is based on the actual metered electricity output.
- Residential PV (off-grid): $0.50/W
- Non-Residential PV (50 kW or less): $0.75/W.
- Non-Residential PV (larger than 50 kW): must take the PBI
- Solar Domestic Water Heating and Solar Space Heating: $0.25/kWh equivalent, plus $750 up to a maximum incentive of $1,750.
- Non-Residential Solar Water Heating and Solar Space Heating: $0.50/kWh-equivalent, plus $750
- Daylighting (Non-residential only):$0.18/kWh equivalent for 5 years.
- Wind (grid-tied, up to 1 MW):$2.25/W-AC
- Wind (off-grid, up to 1 MW): $1.80/W-AC
- On-grid small hydro, biomass-biogas systems, pool heating (non-residential only), space cooling, and geothermal (electric, cooling and heating systems) are all eligible to receive PBIs. See program website for full details including contract options, equipment requirements and PBI amounts.
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