Arizona
Recent Updates
On April 9, 2008, the Arizona Corporation Commission approved recently approved the Renewable Energy Standard implementation plans for the state's largest regulated utilities (you can find APS's here and TEP's here). Bottom line, we are looking at a total of about $42 million in funding for new distributed generation--which will increase a bit as the program grows. Rebates are up to $3/watt for residential installations; and for commercial installations, rebates of $2.50/watt for smaller systems, and performance-based incentives in the form of long-term REC purchases ($0.202/kWh over ten years, and other offerings over different time periods). Note to students of policy design: here's an example of a market with fixed, not floating RECs.
The lack of net metering in the state has been a serious problem, and on that issue, we have good news and not-so-good news. The good news is that the Commission has issued a proposed net metering standard rule (pdf), allowing for net metering up to 125% of a customer's total connected load, monthly rollover of credits, and annual payout at avoided cost of annual net excess. Translated from wonk-speak, that's pretty good. The bad news is that the new standard allows utilities to seek additional charges from net metered customers when they file their implementing tariffs. Depending on what utilities do, that could be a potential risk.
Background
On October 31, 2006, the Arizona Corporation Commission (the regulatory body that oversees utility policy) voted 4-1 to expand the state's renewable portfolio standard to require 15% renewable energy, and 30% of that to come from distributed generation resources. We think much of that will come from solar PV, and that means support for upwards of 2,000 MW. With a world-class solar resource and strong population growth, Arizona has the potential to emerge as a key solar market. Here's a factsheet on impacts (pdf).
If you want the details, here's the Final Rule (pdf, 186 pages).
Policy Needs
Utility implementation of the RES will be on ongoing issue. Net metering is entering the homestretch. For several utilities, tariff structure remains an outstanding issue.
Next Steps
Net Metering: The ACC has issued a proposed rule (pdf) and comments are due preferably by May 19, but will be taken until June 5, 2008, with a public hearing to be held on the same date. See schedule here.
Vote Solar leads for Arizona are Adam Browning and Jim Baak.
Updated 5/7/07