In late 2009, Electrical District No. 3 (ED-3) started offering up to $15,000 rebates on professionally-installed photovoltaic solar systems. The was so much interest in the program that ED-3 looked at ways to reduce its popularity. Already, the response has exceded the funds set aside for the rebate.
The ED-3 solar rebate program is funded by a renewable energy fee it charges customers - 30 cents a month for residential users and $12 a month for commercial. These fees help the company raise $300,000 a year, some of which is used to continue funding renewable energy projects.
Unfortunately, these projects pale in comparison to major utility companies such as Arizona Power Service (APS) and Salt River Project. These companies charge its customers between $1.88 and $3.46 a month for renewable energy projects and incentives. This will provide APS with $86.7 million in tariffs in 2010.
Despite collecting a large amount of money to fund renewable energy, APS and SRP are planning to scale down their solar programs. The number of pv solar installations in 2009 is greater than the previous 8 years combined.
One way APS will accomplish this is through reducing it's maximum rebate to ~$13,000. If APS does not takes this action, the funds set aside for this year will run out by June.
Still, thanks to the generous rebates offered by the federal government and APS, a solar system costs $8,000 - $12,000 out of pocket (instead of $30,000 - $35,000). Imagine purchasing a solar system at $8,000 that will provide you with electricity for the rest of your life!
In addition, any excess energy produced by your solar system will run your meter backwards, giving homeowners a rebate on their electricity.
APS is also looking into raising fees to support these renewable energy programs. APS is discussing whether the renewable energy fees are something the residents of Phoenix would want to pay.
This brings up one important point - the residents of Phoenix are paying for the solar rebates. Why would anyone continue paying for other homeowners to install photovoltaics instead of taking advantage of this offer? Getting a solar system 60% off in a state with as much sunshine as Arizona seems like a no-brainer.
