Solar energy use by Arizonans heating up
Dec 13 - McClatchy-Tribune Regional News - Ed Taylor The Tribune, Mesa,
Ariz.
Gilbert resident Alan Morgan never considered himself to be an
especially "green" sort of person. But when he read about how Valley
utilities were offering rebates to help customers afford rooftop solar
energy systems, he decided to look into the possibility of installing a
solar system on his home.
After studying the pros and cons and figuring the costs and benefits, he
decided to give it a try, eventually installing a substantial 8-kilowatt
photovoltaic system on his rooftop and on top of a ramada behind his
house.
Since completing the installation earlier this year, he figures he has
saved nearly $1,000 on his electricity bills. At that pace, he could
offset the cost of the system in 10 to 12 years.
"Ten years from now, I think I will look back and be very pleased I did
it," he said. "From that point, everything is totally free."
An increasing number of Arizona residents are reaching the same
conclusion and taking advantage of utility rebates and government tax
credits to install clean solar systems on their homes. As a result,
Arizona utilities greatly expanded their renewable energy programs in
2009, and they anticipate further increases next year.
By the end of this year, Salt River Project said it will support the
installation of three times more commercial and residential photovoltaic
and solar hot water systems than it subsidized in 2008.
And Arizona Public Service experienced a "landmark" year in renewable
energy in 2009, with customers installing more solar systems in the past
12 months than in all prior years combined, said Eran Mahrer, manager of
renewable energy.
"People want these systems," he said. "Our customers are more aware of
the programs, there are more installers in the market and more financing
options are available."
Both utilities offer rebates on new rooftop photovoltaic and solar water
heating systems to make them more affordable. Also, federal and state
tax incentives are available to encourage greater use of solar and other
renewable technologies.
According to SRP figures, the Tempe-based utility has supported the
installation of 1,570 rooftop systems under its Earthwise Solar
Incentive program so far this year, compared with 530 all of last year
and 383 in 2007.
The 2009 figure is just through Dec. 3 and about 250 more will be added
before the end of this year, said Lori Singleton, SRP's manager of
renewable energy programs.
The energy being saved from all of SRP's renewable programs is about 1.5
million megawatthours annually, power the utility doesn't have to
generate at fossilfuel plants, she said.
The growth in 2009 occurred despite the weak economy and SRP's cut in
its subsidy per installation on June 1.
"We had a flurry of installations before then and a decline in June,
July and August," Singleton said. "But since then, we've had a big
increase again."
SRP did not disclose the amount it spent on Earthwise rebates this year,
but the demand so exceeded SRP's expectations that the utility had to
increase its Earthwise budget in midyear, Singleton said.
"This is one of the most expensive ways to incorporate renewable energy
into our portfolio," she said. "It is less expensive to purchase power
from (large, utility-scale) wind farms, geothermal and biomass plants.
But we recognize our customers want (rooftop solar systems), so we are
providing them. ... We have decided that we want to meet customer
demand."
Singleton attributed that demand to concerns about the possibility of
future electric rate increases. "People are thinking of solar as a way
to guarantee their prices for years to come," she said.
APS also has aggressively supported solar projects -- prodded by the
Arizona Corporation Commission, which is requiring that regulated
utilities meet 15 percent of their electricity demand from renewables by
2025. About 20 megawatts of customer photovoltaic-generating capacity is
in place, and APS has made commitments to its customers to provide
incentive money for another 40 megawatts, Mahrer said.
"To give an idea of how much interest there is, between 2002 and 2008
about 2,400 customer residential systems were installed," he said. "And
year to date in 2009, over 2,500 residential systems have been
installed."
Commercial installations of solar equipment also took a big jump in the
APS service territory this year, far exceeding capacity installed in all
prior years, he said.
Both utilities expect their renewable programs to continue expanding
next year, but probably not by the same percentage gains.
SRP plans to decrease its subsidy rate again on May 1, 2010, and will
change the way it pays subsidies for commercial installations, which
will make yearover-year spending comparisons difficult, Singleton said.
SRP has decreased the subsidy because the cost of photovoltaic panels
has been declining, she said.
From the utilities' perspective, spending on renewable energy subsidies
saves money in the long run by reducing the need to construct large and
expensive generating plants that run on coal or natural gas.
This year, SRP is meeting about 6.5 percent of its customers' power
demand from renewable sources, including rooftop installations;
utility-scale wind, geothermal and biomass plants; and hydroelectricity
from dams on the Salt River.
SRP's board of directors has set a goal of meeting 15 percent of the
project's electricity demand from renewable sources, including hydro, by
2025.
APS also expects customer interest in rooftop systems to grow.
And the utility will look for opportunities to support more
utility-scale wind, geothermal and solar plants, Mahrer said.
He expects that the delayed 280-megawatt Solana solar generating station
near Gila Bend will obtain financing and begin construction during 2010.
APS estimated in October it will meet about 2.4 percent of its
electricity demand from renewable sources this year, up from 2.1 percent
last year.
To spur growth in the industry, the Arizona Solar Power Society said it
plans to launch a new Web site in January and conduct a "Go Solar in
Arizona" public relations campaign next year to educate residents and
businesses on the benefits of solar power.
"We would like to see solar installed on 9,000 rooftops by the end of
2010," said Robert Hosking, the society's executive director.
CONTACT WRITER:
(480) 898-6537
or etaylor@evtrib.com
Solar use
Photovoltaic and solar hot water installations (2007 to 2009)
2009 (as of Dec. 3)
Residential Solar Electric -- 583 Solar Water Heating -- 964 Total
Residential -- 1,547 Commercial Solar Electric -- 13 Solar Water Heating
-- 10 Total Commercial -- 23 Total 2009 Installations -- 1,570
2008
Residential Solar Electric -- 158 Solar Water Heating -- 355 Total
Residential -- 513 Commercial Solar Electric -- 15 Solar Water Heating
-- 2 Total Commercial -- 17 Total 2008 Installations -- 530
2007
Residential Solar Electric -- 120 Solar Water Heating -- 256 Total
Residential -- 376 Commercial Solar Electric -- 7 Solar Water Heating --
0 Total Commercial -- 7 Total 2007 Installations -- 383 Source: Salt
River Project
SOLAR SAVINGS: Gilbert resident Alan Morgan has installed an 8-kilowatt
photovoltaic system on his rooftop and on top of a ramada behind his
house and says the system could pay for itself in 10 to 12 years through
energy bill savings. THOMAS BOGGAN, TRIBUNE
(c) 2009,
McClatchy-Tribune Information Services
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