TEP - SunShare PV Purchase

September 19, 2002

Summary

Tuscon Electric Power (TEP) created the SunShare hardware buydown program to encourage residential and business customers to install new photovoltaic equipment. Under the SunShare hardware buydown program, systems of 1 kW to 5kW are eligible. The customer may either purchase a qualifying system 1 kW or larger from a third party or may purchase a 1-kW or 5-kW system kit from TEP. The Sunshare program kicked off in 2001 and will continue through at least 2003, and possibly until 2012. Under the third party option, TEP will credit the customer $2,000 per AC kW of proven, installed solar generating capacity. Under the TEP kit option, TEP will credit the customer $2,000 for the 1 kW system and up to $10,000 for the 5 kW system. The kit includes panels, inverter, supports, meter, and meter socket. The cost for a 1 kW solar kit is approximately $9,000 plus installation costs. A kit purchased from TEP will cost $6000 after the $2000 credit. TEP also offers a net metering option which credits the customer with the energy sent into the grid on a kWh basis. To qualify for the buydown program, participants must: 1) be a customer of TEP; 2) have at least 250-sq. ft. of unobstructed space; 3) have a roof facing true south; 4) be within 100 ft of where tying to the grid; and 5) have a roof that can accommodate panels at a 32-degree angle. Installations must have been made after January 1, 1997. Annual inspections and maintenance labor for repairs will be provided by TEP. The PV equipment must meet TEP and Arizona Corporation Commission requirements for self-generation equipment. The program has received over 1000 inquiries and over 150 applications. As of September 2002, about 27 customers have received payback or are in the process of being tested for acceptance. In addition to financial assistance from TEP, state tax benefits are available up to $1,000.