APS moves to reduce solar rebates
[10/22/10]

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.

"This is a great problem to have because it means a strong solar industry has emerged in this state and that Arizonans are showing their demand for solar," said Kris Mayes, chairwoman of the Arizona Corporation Commission, the state utility regulator that requires utilities to supply increasing amounts of energy from renewable sources.

The five-member commission must vote on the proposed changes. The regulators intended to cut the solar incentives over time but not this fast.

"We didn't expect in a down economy we would see such strong demand for solar," Mayes said.

Until Wednesday, APS paid customers $3,000 per kilowatt of power, or about $18,000 for the average solar-power system, which covers about half of the price of the systems before federal tax credits.

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.

But all that money is drying up the funds APS collects from customers to pay for those rebates. So, the company says it has to raise solar-energy tariffs on its 1.1 million customers or cut the rebates it pays solar customers.

APS asked regulators this week for the latter and said that any new rebate applications since Wednesday will not get the full rebate.

"The reduction allows more people to participate through the end of the year and draws on the same funds through the end of the year (without raising electric bills)," said Eran Mahrer, APS renewable-energy director.

An average solar-power system installed on Phoenix homes produces about 6 kilowatts and sells for about $30,000 to $35,000, according to American Solar Electric Inc. and Green Fuel Technologies, two major installers in the Phoenix area.

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 former APS rebate for a 6-kilowatt system was $18,000.

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.

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.

The Corporation Commission, which approves the tariff and other utility rates, requires part of the money be spent on "distributed" energy projects, such as rooftop solar or other energy sources that are not centralized power plants. Part of those funds must go to homes and part to businesses.

APS set aside $44.1 million for residential incentives this year, but that money would have run out by June if the company didn't cut the incentives Wednesday, Mahrer said.

The utility still is likely to run out of money and have to stop taking applications by the end of the year. It will likely ask regulators to raise the tariffs in 2011 to help the company meet the increasing state requirement that utilities use renewable power sources.

APS is cutting its rebates to spread the money among more customers, much like Salt River Project did a year ago.

SRP's current rebate is $2,700 a kilowatt, and it will decline to $2,550 on May 1, with annual reductions after that.

"I would expect SRP to step down (its incentive) a little bit faster than what they projected," said Sean Seitz, president of American Solar Electric in Scottsdale.

SRP gave customers and installation companies a month's notice last year when the company cut its rebate, but that caused a rush of people trying to get the higher rebates that cost the company $9.4 million, said Lori Singleton, SRP's sustainable-initiatives manager.

To avoid a similar last-minute rush, APS announced its cut Wednesday with the change retroactive to Tuesday.

Seitz said that the move from APS was unexpected but that it could help push down prices.

"The cost of systems has come down dramatically, and there has been a steady decrease in the price of solar modules and inverter technology since the beginning of last year," Seitz said. "The industry is also ramping up the capability to install systems. We are more efficient than we were six months ago."

Dustin Hamby, president of Green Fuel Technologies in Phoenix, agreed. "It is the natural progression of the industry," he said. "Incentives can only hang around so long."

Nevertheless, the change at APS has affected his business. Not only does he have several customers who recently ordered solar-power systems expecting to get a big rebate who now likely won't get that incentive, but Green Fuel also has stopped offering no-money-down leases in APS territory.

"We have several contracted sales that could affect hundreds of thousands of dollars," Hamby said.

American Solar Electric also has several customers whose solar projects are in limbo because they thought they would get full rebates from APS but did not apply for the rebates in time.

"It is a little bit of a snag there," Seitz said. "But if APS hadn't taken these steps, we'd have a program where potentially we had no funding left for the year."

Mayes said the incentive cut will require solar installers to keep prices down.

"The installers are going to have to squeeze some efficiencies out of their own business," she said. "Customers can shop around and go to the installer who offers the lowest price. It's a competitive industry, and there may be some installers who can't compete at the lower incentive level."

By Ryan Randazzo. "APS moves to reduce the solar rebate" www.azcentral.com, 3 APR 2010. Web. 3 APR 2010. http://www.azcentral.com/arizonarepublic/news/articles/2010/04/03/20100403aps-solar-rebate.html

Clean air energy jobs Press Release
[7/16/10]

As Jobs, Gulf Spill and Energy Rise to Top of Political Agenda, Arizona Clean Energy Business Leaders Highlight Local Job Creation, Call Upon Senators Jon Kyl and John McCain for Strong Clean Energy Jobs and Climate Legislation

Carefree, Arizona – With the Senate expected to debate energy legislation this month in response to the Gulf oil disaster, clean energy business leaders across Arizona, in coordination with the 1Sky Campaign, called upon Senators Jon Kyl and John McCain to support a strong bill that reduces fossil fuel dependence and global warming pollution and creates millions of clean energy jobs.

“It is time for Congress to connect the dots between the disaster unfolding in the Gulf of Mexico and our broader addiction to fossil fuels like oil and coal that are heating our planet,” said Corey Garrison with Southface Solar Electric in Carefree, AZ. “To prevent future disasters, the Senate must enact legislation that reduces global warming pollution and protects existing tools like the Clean Air Act to jumpstart investment in a clean energy economy.”

Clean energy has emerged as one of the fastest-growing economic sectors in the U.S. in recent years, even amidst the recent economic downturn. Clean energy businesses are bucking broader economic trends by creating clean energy jobs on a local level.

“The incredible growth I’ve seen in the clean energy field recently can be expanded even further with the passage of a strong energy and climate bill,” said Ken Choate with SouthFace Solar Electric in Carefree, AZ. “By supporting such legislation, Senators John McCain and Jon Kyl can help unlock American ingenuity and rejuvenate our economy.”

According to the Center for American Progress, strong investments in clean energy would create 30,000 clean energy jobs in Arizona and 1.7 million nationally. The Center has also found that investing in energy efficiency and renewable energy creates up to four times as many jobs as investing in fossil fuels.

“The dirty energy status quo is no longer an option,” said Edward Fedoruk with SouthFace Solar Electric in Carefree, Arizona. “The price of inaction is clear – a worsening climate crisis and reduced American competitiveness in the global economy. Senators Jon Kyl and John McCain must act now to deliver the bold solutions we need to these challenges.”

Report claims the UK has potential to be carbon free by 2030
[6/16/10]

A report published by the Centre for Alternative Technology (CAT) outlines that the UK has the potential to reach zero carbon status by 2030. The report includes input from 13 universities, 12 research bodies and eight key industry players, according to PV-Tech's UK sister website.

"zerocarbonbritain2030 shows how the right mix of wind power, hydro, solar, biomass - plus an intelligent grid to manage demand. We can ‘keep the lights on' and supply the energy the country needs- with major win-wins across the economy," said Paul Allen at CAT.

The report has been published with the aim of driving the country's sectors efforts to cut emissions by choosing alternative renewable power technologies. Now that the UK has a FiT for installing solar PV, the report outlines that the increased investment for renewable energy generation is expected to rise.

David Matthews, chief executive of the Solar Trade Association said, "The opportunities solar provides for the UK economy are massive with a huge potential for job creation - in excess of 100,000 people could be employed in the installation of solar across the country. Today, we are already witnessing these size industries in our European neighbors. Solar benefits both the homeowner and the economy."

By Emma Hughes. "ReportClaims the UK has potential to be carbon free by 2030" www.pv-tech.org, 16 Jun 2010. Web. 16 Jun 2010. http://www.pv-tech.org/news/_a/report_claims_the_uk_has_potential_to_be_carbon_free_by_2030/

Raising Arizona (solar): Tucson Electric primes the PV pump with 100MW-plus program
[6/16/10]

There are few places on the planet more suitable for solar power than Arizona. Despite the obviousness of this desert-fried fact, the state trails its large, golden neighbor to the west in the amount of PV and CSP installed as well as megawattage in the development pipeline. But two recently announced programs from a pair of Arizona’s main utility operators—Tucson Electric Power and Salt River Project —would bring a couple of hundred more megawatts online within the next couple of years, and in TEP’s case, provide a distributed test bed for a variety of PV technologies.

TEP’s plan has already gone through the request for proposal stage, where 144 submissions from 58 companies were sorted through to come up with seven winners, with which it has signed 20-year power purchase agreements. The firms chosen will build 10 solar PV power plants, totaling 107MW installed, from which the utility will buy the output. The power company has submitted the agreements to the Arizona Corporation Commission for review, possibly at this month’s meeting, and awaits a decision.

SRP has just got the PV ball rolling, issuing a request for proposals (RFP) for utility-scale, ground-based solar photovoltaic power plants, preferably between 5 and 20MW in capacity. The idea is to add up to 50MW of ground-mounted PV capacity by the third-quarter 2012 and another 50MW a year later, with the projects preferably interconnected in SRP’s service territory across a couple of counties in the sprawling metro Phoenix area.

Between the two programs, as much as 207MW of new PV systems would be plugged into the Arizona grid within three years, representing an exponential increase of solar-power generation used by the firms—especially for SRP, which currently has a measly megawatt or so under sun.

TEP, well down the path in its plan, may see its PPA partners putting shovels in the ground by the end of this year, as long as the commission doesn’t dilly-dally. Joe Salkowski of the UniSource Energy-owned utility told me on May 28 last that “the timing of the ACC’s review is entirely up to the ACC. We would hope to have these approved soon, but beyond that I don’t have much to say in terms of timing.”

The ACC has approved other, similar requests from TEP in recent months, giving the thumbs up to the utility to add 1.8MW of new capacity to its existing 4.6MW Springerville PV array as well as to another 1.6MW system to be built by Solon elsewhere in Tucson (both of which will be completed this year, he said).

“We’ve asked the commission to sign off on the contracts to give us an indication that these are the sorts of contracts that they would like us to proceed with,” the spokesman explained.

“The agreement we’re seeking from the commission now is that as we sit here today, these look like responsible contracts of the sort we ought to be moving forward with. We believe that gives us enough assurance that we can move forward and it provides the developers with the ability to secure financing for their projects.”

Since financing (AKA bankability) is crucial to the success of any PV project development, the importance of ACC’s approval is critical.

Some details of the TEP 10 can be found in the application (a public document) submitted by TEP to the commission for approval of the renewable energy PPAs. Although the companies involved have left some of the specifics of their proposed projects a bit vague, one intriguing element is the presence of 16MW of concentrator PV in the mix from Amonix and Emcore.

Both CPV companies plan to build 2MW arrays in the University of Arizona’s Science and Technology Park’s 200-acre “Solar Zone,” located in the UASTP’s 1345-acre development in southeast Tucson.

The university’s Campus Research Corp. has already approved the terms and conditions of 20-year ground leases for Amonix’s 12-acre plot and a 9.3-acre space for Emcore (and its partner, American National Solar). Estimated design and construction costs are stated at $30 million for the Amonix plant and $5 million for the Emcore site.

Amonix also plans to build a substantially larger system in Swan Quarry, a 10MW array that would be the largest CPV installation in North America and in the world for that matter, if it were completed today.

Two other companies also plan to install PV fields in the UASTP Solar Zone. Foresight FSP Solar Two will spend $17.5 million to design and build a 4MW single-axis tracker system of as-yet unknown type on 37.3 acres, while CTC Electric’s First Light unit will fit out a stationary 5MW installation for about $15 million on 58.6 acres elsewhere in the zone.

FSP also will post 12MW of single-axis-tracked panels in an as-yet-to-be-determined location on TEP’s turf.

The two largest PPA projects among the TEP 10 will be a 35MW farm owned by Avalon Solar and a 25MW field run by NRG Solar. Avalon’s fixed arrays will be sited on fallow farmland held by Tucson Water in the burg of Marana, while the NRG project location has yet to be finalized.

The final pair of projects will be built out by Solon, a pair of single-axis-tracked 5MW plants in a, you guessed it, yet-to-be-determined site.

Although the types of non-CPV modules to be deployed have not been announced, I’d bet that Solon will be using its own panels manufactured in its factory in Tucson. I’d also wager that First Solar’s CdTe mods would be in the running for the NRG site, since the two companies already have a good partnership thing going at the 21MW solar farm in Blythe, CA.

It would be cool to see CIGS panels from Global Solar also have a presence among the TEP 10, especially given its location within the confines of the UASTP’s Solar Zone, a zone which puts a lot of emphasis on including “assembly/manufacturing” facilities and R&D labs as well as power-generation plants in its vision statement.

The more variety of modules the merrier, as far as fans of comparative PV test beds are concerned. Two sets of CPV technologies going pretty much head-to-head with a combination of crystalline and thin-film modules will make the TEP 10 an intriguing source of real-world data once the systems come online.

The utility’s Springerville Generating Station Solar System (SGSSS) (shown at top of blog) already has provided substantive comparative data since its inception in 2004, as it includes modules from Schott, BP Solarex, and early CdTe models from then-upstart First Solar.

“We’re looking forward to seeing which of those technologies works best for us and our customers,” noted Salkowski.

(SRP’s just-announced program, which will have a web-based conference for interested parties on June 15, will only consider crystalline-silicon or thin-film PV panels and fixed-tilt or single-axis tracking technology—sorry, CPV fans.)

The other biggish PV project in TEP’s PPA portfolio is being developed by Fotowatio Partners, a single-axis tracker-based farm near Marana. He said that Fotowatio is “preparing research and materials for its conditional use permit from Pima County and hopes to have the system completed in 2011.”

Add up the newly PPA’ed PV with the already-approved projects, and TEP figures to harvest as much as another 135MW-plus of sun juice for its corner of the grid by 2012.

Even if that number shrinks a bit through financing woes, permitting hang-ups, SB 1070-related boycotts (no comment), or other types of possible project attrition, TEP will be in the top ranks of solar-minded midsized utilities and well on its way to meeting its state-mandated Renewable Energy Standard requirements.

Now it’s up to the ACC to greenlight Tucson Electric’s latest PPAs and get the party started.

By Tom Cheyney. "Raising Arizon (solar): Tucson Electric primes the PV pump with 100MW-plus program" www.pv-tech.org, 09 Jun 2010. Web. 16 Jun 2010. http://www.pv-tech.org/chip_shots/_a/raising_arizona_solar_tucson_electric_primes_the_pv_pump_with_100mw-plus_pr/