PHOENIX, Dec. 13 /PRNewswire-USNewswire/

Freeing the Grid, a new report issued today, grades states on the quality of their net metering and interconnection standards -- policies critical to successful solar energy market development. Compared to nearly every other state in the nation, Arizona falls short on its policies, particularly in net metering, a critical element in ensuring a healthy solar market.

"Without exception, significant deployment of clean, customer-sited distributed generation occurs only in states with modern interconnection and net metering policies," the report claims. The report was authored by the Network for New Energy Choices in collaboration with the Interstate Renewable Energy Council, the Vote Solar Initiative and the Solar Alliance.

New Jersey leads the nation, with an A grade for net metering, and a B for interconnection. Arizona, which does not have a statewide net metering standard, receives the equivalent of a dropped class.

"When you think of solar you don't necessarily think of states like New Jersey and Pennsylvania," remarked Kyle Rabin, Director at NNEC. "Yet those states, with their great net metering rules, are doing more to encourage solar growth than Arizona."

"Since Arizona doesn't have a state policy, utilities are free to craft their own. And local utilities have set the bar very low. Individually, APS would have received a D and SRP and TEP both rate grades of F. This is the main barrier to solar energy's development in the state," said Adam Browning, Executive Director of the Vote Solar Initiative, a non-profit organization that has been working to help develop the solar industry in Arizona.

Net metering is a policy that allows solar system owners to feed unused electricity back into the grid for others to use, and in return, have their meter roll backwards and bank credits for their next bill. Best-in-class standards allow net metering up to 2 MW in size, allowing for large, commercial systems. And interconnection standards are rules by which a solar customer safely plugs into the grid.

"Some improvement in net metering has occurred in Arizona in recent years, but not all utility customers have the opportunity to participate" said Sean Seitz, President of American Solar Electric, one of Arizona's largest photovoltaic system integrators.

"With momentum building in Arizona to deploy large roof-top PV systems, we need to see quick action by our policymakers in implementing "A+" net metering and interconnection policies," added Mr. Seitz. "If action is not taken in a timely manner, we risk postponing or forfeiting the installation of millions of watts of solar power. Many of our political leaders like to claim that Arizona is the Saudi Arabia of solar. Now is the time to put that rhetoric into action with policies that leverage our abundant solar resource for the benefit of all Arizonans."

"Arizona's landmark Renewable Energy Standard is the engine that will drive solar's development in the state -- but net metering and interconnection are the road. Without good net metering, the state's road to a renewable energy future will be unnecessarily rocky," said Mr. Browning.

The report can be downloaded here:

http://www.newenergychoices.org/uploads/FreeingTheGrid2007_report.pdf

Grace (Grass Roots Action Center for the Environment)

CONTACT: Adam Browning of the Vote Solar Initiative, +1-415-817-5062; orSean Seitz of the Arizona Solar Electric, +1-602-768-3260; or Shaun Chapman ofthe Network for New Energy Choices, +1-212-991-1831

Web Site: http://www.gracelinks.org/