UES - Renewable Energy Credit Purchase Program

Summary

Note: The Arizona Corporation Commission (ACC) is in the process of modifying some elements of this program. When the ACC issues their final order it is expected that the up-front incentive for residential and commercial photovoltaics (PV) will be reduced to $0.10 per watt and the incentive for solar water heating will be reduced to $0.40 per equivalent kilowatt-hour (kWh). The summary below reflects the program as it was available in 2012.

Through the Renewable Incentive Program, UniSource Energy Services (UES) offers customers who install various renewable energy sources the opportunity to sell the credits associated with the energy generated to UES. Previously, UES only provided incentives for solar technologies, but they expanded the list of qualified renewables in 2008 to include all technologies eligible for Arizona's Renewable Energy Standard (RES). The solar technologies eligible for a rebate include photovoltaic (PV), solar hot water, solar HVAC and solar daylighting systems. Up-front incentives for PV may be de-rated based on expected performance. As of May 15, 2012, renewable energy systems are eligible for the following credit amounts:

• Residential photovoltaics (PV): Funding has been depleted for 2012
• Non-residential PV (up to 70 kW-AC): Funding has been depleted for 2012
• Non-residential PV (greater than 70 kW-AC): Production-based incentive (PBI) on a 10, 15 or 20 year contract.
• Residential solar water heating and space heating systems: $0.50/kWh (up-front incentive), up to $1,750
• Small commercial solar water heating and space heating systems: $0.50/kWh (up-front incentive), up to $200,000
• Large commercial solar water heating systems: Performance-based incentive
• Solar space cooling systems (non-residential only): The incentive for the thermal energy delivered for cooling by a solar HVAC system is based on actual performance and ranges between $0.104/kWh-equivalent and $0.116.kWh equivalent. In addition, systems that incorporate solar thermal heating and/or solar thermal water heating are eligible for the large solar water heating PBI.
• Grid tied residential and commercial wind (less than 1 MW): $1.25/W
• Solar Daylighting (non-residential only): $0.18/kWh anticipated first year savings.
• Other renewables installed by non-residential customers can apply to receive a PBI.

Funds are assigned through a reservation process. All necessary forms can be downloaded from the program website.

UES is purchasing solar credits and renewable energy certificates to help the company meet the state's Renewable Energy Standard (RES). Participating customers receive a one-time rebate or receive an incentive based on system output or kWh savings. UES will have access to the credits for the life of the RES program.