AZ SUN TOO POPULAR

APS moves to reduce solar rebates
Ryan Randazzo, April 3, 2010 (The Arizona Republic)

"Arizona Public Service Co. has cut the amount of money it pays customers who put solar panels on their roofs and said the reductions are needed because the program is so popular it was going to run out of money by June.

"The changes, if approved by regulators, will add to the out-of-pocket expenses for customers installing solar panels. But officials said that demand is soaring and that reducing the subsidies will put pressure on solar companies to cut expenses and drive down the cost of solar installations…The five-member commission must vote on the proposed changes. The regulators intended to cut the solar incentives over time but not this fast…APS [has] paid customers $3,000 per kilowatt of power, or about $18,000 for the average [$30,000-to-$35,000 6-kilowatt] solar-power system…"

Sun like this insists on itself. (click to enlarge)

"More APS home and business customers put solar panels on their roofs last year than in the previous eight years combined, and about 113 residential customers a week have applied for solar rebates from the utility this year…APS asked regulators [for the reduction March 31]…and said that any new rebate applications since [then] will not get the full rebate…

"The rooftop solar panels provide electricity for homes in daylight, and customers rely on power from their utility at night or when they use more energy than the panels are making. Surplus electricity is fed to the power grid and credited to the customer…The remaining $12,000 to $17,000 out-of-pocket expense is eligible for a 30 percent federal tax credit and $1,000 incentive from the state…"

The number one right on the Solar Bill of Rights. (click to enlarge)

"APS is proposing to cut its rebate to $2,150 a kilowatt, which would offer customers a $12,900 rebate on a 6-kilowatt system instead of $18,000. That is a $5,100 increase in out-of-pocket expenses, but the potential federal tax credit would be slightly larger because of the higher price…

"All APS residential customers pay a maximum $3.46 monthly tariff that the company uses to fund renewable-energy projects, including rooftop solar and power plants that use solar, biomass or other alternative sources…The maximum tariff for business customers is $128.70 a month, and industrial customers have a $386 monthly cap…APS will collect about $86.7 million from the tariffs this year…"