APS: Renewable Energy Incentive Program

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): $0.55/watt DC, adjusted based on expected performance. See note above about incentive availability.
• Grid-tied PV (non-residential): $0.60/watt DC; or commercial customers may opt for a production-based incentive (PBI) on a 10-, 15- or 20-year contract.
• Off-grid PV (residential): $1.50/watt DC; System must be less than 5 kW.
• Off-grid PV (non-residential): $1.35/W or PBI
• 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 $0.68/kWh estimated first-year energy savings based on OG-300 ratings for small systems. For large SWH systems, customers can receive $0.41/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 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.