Solar Power Surge Drains 2010 Funding For UES Sunshare Up Front
Incentives
July 14, 2010 (As reported on http://www.uesaz.com)
Tucson, Ariz. – A dramatic surge in solar power system sales has
depleted the rebate funds available from UniSource Energy Services (UES) to
subsidize the installation of photovoltaic (PV) arrays at local homes and
businesses.
UES customers are on track to install 500 solar power systems in 2010,
exceeding the total number of systems completed over the previous seven
years combined. Rebate requests received in June alone consumed nearly half
of the company's $5.2 million budget for up-front incentives in 2010.
"Interest in solar power systems has exceeded even our most optimistic
projections, giving us a real boost toward achieving our renewable energy
goals," said David Hutchens, Vice President of Energy Efficiency and
Resource Planning for UniSource Energy Corporation (NYSE: UNS), UES' parent
company.
New requests for incentives are being placed on a waiting list until the
Arizona Corporation Commission (ACC) determines how the company should
proceed. UES could wait until new resources are available next year, restore
up-front rebates by tapping funds now preserved for performance-based
incentives or raise additional resources through customer surcharges.
Increased demand for UES SunShare subsidies has been driven in part by
reduced costs for solar power systems. The prices of installed PV systems in
Arizona have dropped to about $5 per watt from nearly $12 per watt in 2006,
while UES' incentives have remained unchanged.
The pace of rebate reservations also quickened after Phoenix-based
utility Arizona Public Service (APS) reduced its PV incentive levels to
$1.95 per watt in April, encouraging PV installers to step up their
marketing efforts elsewhere. Tucson Electric Power (TEP), UES' sister
company, has experienced a similar surge in recent rebate applications that
exhausted its 2010 funding for up-front commercial system rebates and
prompted a request for lower residential incentives.
UES has asked the ACC to make $6.7 million available in 2011 for up-front
incentives that would be reduced to reflect higher demand and lower PV
prices. Residential customers would be eligible for rebates of $2.25 per
watt – down from $3 per watt – while up-front incentives for commercial
systems would be reduced from $2.50 to $2 per watt. The ACC is set to review
that proposal later this year.
Reduced incentives would help keep renewable energy costs down for UES
customers, who fund the SunShare program through monthly surcharges set by
the ACC under Arizona's Renewable Energy Standard (RES). The RES calls on
electric utilities to increase their use of renewable energy each year until
it represents 15 percent of their power in 2025.
UES complements the solar energy generated by SunShare-subsidized systems
with renewable power purchased from outside providers. Beginning next year,
UES customers should begin receiving power from a new wind farm and solar
array developed in the Kingman area by Western Wind Energy.
UniSource Energy Services provides natural gas and electric service to
more than 236,000 customers across Arizona. To learn more, visit
uesaz.com.
For more information about UniSource Energy, UES' parent company, visit
uns.com.
Milholland Electric is a licensed electrical contractor in Arizona
with an experienced team in solar panel design and solar panel installation
and maintenance. Contact us for a
free estimate today!
