Reminder- Arizona tax credit information is available here: Arizona Tax Incentives
Federal investment tax information, including end of year rules, is available here: Federal Tax Incentives
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The following items have been recently added or updated:
Energy vs. Agriculture in Italy
Electrification of transportation sector = More Renewable Energy Needed
Tucson Electric Power (TEP) to provide 70% of its energy from solar and wind by 2035
Reminder- Arizona tax credit information is available here: Arizona Tax Incentives Federal investment tax information, including end of year rules, is available here: Federal Tax Incentives
Arizona Legislature
Not in session
Arizona Corporation Commission
The Arizona Corporation Commission (ACC) has posted STAFF'S THIRD REVISED PROPOSED DRAFT RULES (DOCKET no. RE-00000A-18-0284) That lay out a clearer framework for Electric Utilities to report their compliance with the proposed standards for the Renewable Energy Standard, Clean Peak Standard, Distributed Renewable Storage Requirement, and Electric Vehicle Infrastructure. See the ACC Staff Report: docket.images.azcc.gov/E000004960.pdf See also Materials Presented by the Joint Stakeholders at the Commission's March 2020 Energy Rules Workshop ACC Staff has made substantial changes to the draft rules that were filed on July 2, 2019 based on feedback received at each workshop held in this matter, comments to the docket, and a review of relevant energy policies across the United States. The Nature Conservancy has submitted their report "Arizona Thrives - A Path to a Healthy and Prosperous Future" to the ACC. Interesting. APS has submitted their report, The Solar Center has slightly reformatted this report by rotating the pages for easier viewing. APS has provided two presentations to address the ACC questions. Worth a read.
Arizona Corporation Commission-POSSIBLE MODIFICATIONS TO THE ARIZONA CORPORATION COMMISSION'S ENERGY RULES
Update July 30, 2020: When the Arizona utility regulators met to decide these issues they deadlocked over whether they should increase the state's requirements for renewable energy. It proved not possible to obtain the agreement of at least three commissioners, the meeting was adjourned. See the Arizona Republic article on this: Arizona utility regulators hit roadblock on clean-energy rules, abruptly end meeting. The Arizona Corporation Commission (ACC) has released the Notice of Final Rulemaking Interconnection of Distributed Generation FacilitiesInterconnection of Distributed Generation Facilities document. With this rulemaking, the Commission adds a new Article 26, entitled " Interconnection. of Distributed Generation Facilities" to 14 A.A.C. 2, the Chapter containing the Commission's rules for fixed utilities, with the new Article 26 including 28 new rules. The rules for Interconnection of Distributed Generation Facilities ("DGI Rules") establish mandatory technical standards, processes, and timelines for utilities to use for· interconnection and parallel operation of different types of distributed generation ("DG") facilities; customer and utility rights and responsibilities; provisions for disconnection of DG facilities from the distribution system; specific safety requirements; more flexible standards for electric cooperatives; a reporting requirement; and a requirement for each utility to create, submit for initial approval and submit for approval periodically and when revised, and implement and comply with a Commission-approved Interconnection Manual. The first dozen pages are basically legal stuff. The document defines how an utility must review, then accept/reject/etc. an application to connect distributed generation to the utility. It defines both customer rights and utility procedures. There are a lot of utility, installer and customer comments along with the ACC staff recomendations.
Interconnection of Distributed Generation Facilities
This is a good report that provides a conceptual framework for the Statewide Transportation Electrification Plan for Arizona, including planned or proposed near-term utility actions to support the growth of Electric Vehicles (EVs) in the state. The report is part of a filing on the Arizona Corporation Commission website: Arizona Statewide Transportation Electrification Plan
Arizona Statewide Transportation Electrification Plan
Municipality Info
The City of Phoenix is now (January 2020) requiring a special permit from the Fire Department for most solar systems and batteries. The fees and required plans varies with size and content. See this link for an application and details: https://www.phoenix.gov/firesite/Documents/Solar Photovoltaic OTC Bundle Rev 01-2020.pdf This is in addition to a building permit from the Planning & Development Department and must be separately obtained at a different address (150 South 12th Street) or on-line via the above link. Also noted is that residential PV permits are no longer over the counter and as of March 2020 are estimated to take 29 working days to process. Separate inspections are required. The code requirements are contained in Phoenix-Chapter 12 BESS R-3-1.pdf Also note: All Phoenix solar building permits are now electronic submittal only. Contact the Electronic Plan Review (EPR) Triage Team at 602-534-5933 or epr.support@phoenix.gov. For more information on EPR, visit us at https://www.phoenix.gov/pdd/onlineservices/electronic-plan-review. Related: PV Rapid Shutdown Signage- Phoenix .
Phoenix Fire Dept. now requires a separate permit for solar systems and batteries
At the Federal Level
The US House passed the Moving Forward Act, H. R. 2, on July 1, 2020. The US$1.5 trillion infrastructure support bill includes a raft of measures in support of America’s clean economy. The bill proposes to extend the solar Investment Tax Credit (ITC) scheme to 2025. Major resistance is expected in the Senate. More details on this bill are at: Solar-friendly US infrastructure bill inches forward as it passes House Additional coverage: House Democrats Spell Out Climate, Clean Energy Priorities in Sweeping Plan Update August 4th: 07/20/2020 Senate Received in the Senate. No action since. Call your Senators!
Solar-friendly US infrastructure bill inches forward as it passes House
The President Trump released a Proclamation on October 10, 2020 that will increase the tariff on imported solar cells and panels next year. Bifacial solar panels will officially lose their exemption status. The solar industry was the first market to feel the hit of tariffs brought on by Trump in 2018. Beginning in February 2018, imported crystalline silicon cells, modules and AC/integrated modules were tariffed 30% as part of a four-year outline. Imports received a 25% tariff in 2019, a 20% tariff in 2020 and were scheduled for a 15% tariff in 2021. Update (10/15/20): A U.S. trade court again denied a request by the Trump administration to end a tariff exemption for imported two-sided solar panels. (caution: paywall) U.S. Court of International Trade Judge Gary Katzmann refused to lift an order preventing the administration from withdrawing an exemption for two-sided, or bifacial, panels The government didn’t follow the law the first time it moved to withdraw the loophole, and it didn’t fix the procedural errors the second time it tried, Katzmann said. Katzmann said he was taking no position on whether the duties would protect the domestic solar industry “Once again, the court merely continues to...
Trump Proclamation increases tariff on imported solar panels and revokes bifacial’s exemption
Utility Information
Update July 18, 2020 APS has posted a Final report on the McMicken Battery Energy Storage System Event Technical Analysis and Recommendations. See the full article: https://azsolarcenter.org/update-utility-solar-battery-fire-in-arizona
Update- Utility Solar Battery Fire in Arizona (Intro)
Arizona Public Service Co. has announced that it plans to produce all of its electricity from carbon-free sources by 2050 and will get 45% of its power from renewable sources like solar and wind by the end of this decade. This is a good improvement from the point of view of sustainable energy. There are still a lot of details to be worked out such as the role that distributed energy will take. Will APS APS improve its policies in regard to residential and small commercial systems. There are several good news articles and the APS press releases on this announcement: APS:APS sets course for 100 percent clean energy future Arizona Republic: APS will eliminate carbon emissions by 2050 and close coal plant ahead of schedule, CEO says The Washington Post: Arizona’s biggest utility says it will get all of its electricity from carbon-free sources by 2050
APS sets course for 100 percent clean energy future
Tucson Electric Power (TEP) plans to provide more than 70 percent of its power from wind and solar resources as part of a cleaner energy portfolio that will reduce carbon emissions 80 percent by 2035. TEP has filed its integrated resource plan (IRP) with the Arizona Corporation Commission, outlining plans for 2.5GW of new solar and wind over the next 15 years and 1.4GW of energy storage capacity as it progressively shutters its coal power stations. See the TEP Press Release for more information: https://www.tep.com/news/tep-plans-clean-energy-expansion-carbon-reduction/
Tucson Electric Power (TEP) to provide 70% of its energy from solar and wind by 2035
TEP customers intending to install a new PV system now need to check that their system can be safely installed and connected to TEP’s grid. TEP now has service areas that are saturated with PV systems where new PV systems are subject to additional review and requirements under Arizona’s Distributed Generation Interconnection Rules. TEP has prepared DG Saturation Maps showing these areas. This further described at https://www.tep.com/get-started-with-solar/ This requirement stems from the recent Distributed Generation Interconnection Rules issued by the Arizona Corporation Commission. Further information is available at:Interconnection of Distributed Generation Facilities Update: See the related article on tucson.com: New state rules limit rooftop solar systems in some Tucson neighborhoods
TEP PV Saturation Maps
Interesting Technology Updates;
Battery Storage Costs Drop Dramatically, Making Way to a New Era. A recent Rocky Mountain Institute (RMI) report continues to confirm that clean electrification through batteries is advancing at impressive rates. Very interesting report: Breakthrough Batteries- Powering the Era of Clean Electrification
Breakthrough Batteries Powering the Era of Clean Electrification
Other Announcements
Caution- News leads open in new windows. Warning- These news links are automatically generated by others such as Google News and are not reviewed by the Arizona Solar Center, Inc. We are not responsible for link content.
Announced 8/21/2017 4:26 PM Stakeholders, The Arizona Corporation Commission (ACC) has approved a decision in our rate review, and we are happy to share some details with you affecting our solar customers. We appreciate your support in delivering this message to customers and will be glad to help you with any questions you may have. For your reference, attached are letters that were sent to customers regarding grandfathering. Other resources are available at aps.com/gosolar. Grandfathering
Resource Comparison Proxy (RCP) Export Rate In addition to the typical requirements, to qualify for RCP the solar system will need to meet the following criteria:
Use this link to learn more: Rate Rider RCP Interconnection Application Checklist The checklist used to review applications has been revised to include RCP qualification criteria, and is attached for your convenience. Please use this tool to ensure applications meet the qualifications and Interconnection Requirements for expeditious approval. New Homes In order to qualify for RCP (see RCP requirements above), customers installing solar systems over 10 kW DC on a newly constructed home that does not have established usage history will need to provide load calculations stamped by an Electrical Professional Engineer in Arizona. These load calculations will need to be uploaded to the application under the document type “New Build Load Calculations”. Resubmittals After Approval In order to continue our efforts to streamline the application review process, applications that have new diagrams submitted after approval (i.e. change in equipment and new diagrams are uploaded) will need to be canceled and a new application will be required. The new application will be subject to the rate rider in effect at the time the complete application is submitted. This change is effective immediately. (See below, APS has extended this) Applications with resubmittals prior to today will continue to be manually processed. Saver Choice Tech Plan Qualification (Formally known as R-Tech) The Saver Choice Tech Plan Qualification application will be available online August 22, 2017. Customers interested in this experimental rate can apply if they meet the requirements. Use this link to learn more: Saver Choice Tech
Solar Water Heater Incentive Program The Solar Water Heater Incentive Program is now closed. Applications that have already been submitted will remain active. We appreciate your patience as we process the high volume of applications received over the past several months. We will continue to work with you and answer any questions that may arise during this time of transition. If you would like more information regarding the rate review decision, please visit azenergyfuture.com. Sincerely, APS Renewable Energy Team |
On 8/21/2017 5:35 PM, APS Renewable Energy emailed a revision: Stakeholders, We are contacting you again to provide a slight change and clarification regarding resubmittals after approval, which was mentioned in the Stakeholder Communication sent today. Due to feedback and some concern regarding this change, we will be postponing this policy until after the Grandfathering 180 day period is over. It’s important to know that equipment changes or shortages do not extend the 180 day Grandfathering period. We appreciate your feedback and flexibility. Sincerely, APS Renewable Energy Team |
You have received this message from APS because we thought you might be interested in this information. If you don't want to receive these messages, This email address is being protected from spambots. You need JavaScript enabled to view it. and we will remove you from our contact list. aps.com | 400 N 5 Street, Phoenix, AZ 85004 |
The must-see panel of Intersolar North America (if you could only see one) discussed the most pressing issue in distributed solar today: What’s happening with net metering – and where does the industry go from here?
At 9 am on Tuesday morning, one of the most important issues in the industry was being debated in a conference room as part of the Intersolar North America trade show: net metering.
Across the nation, net metering policies are changing. The largest solar market, California, has moved to a successor policy, while other states including Hawaii and Indiana have shut the policy down entirely.
But looking beyond the more severe instances, an exploration of different states shows a definite shift in the direction of policies that attempt to put a more precise value on the electricity exported to the grid by distributed solar, along with a move to time-of-use rates. And more often than not the shift is more incremental than a step-change.
The assembled experts attempted to grapple with these big-picture issues, fragmented as they are in the individual experiences of different states.
Read the rest of the article on
https://pv-magazine-usa.com/2017/07/12/net-metering-is-dead-long-live-net-metering/
By Bill Ellard, Energy Economist March 9, 2017
The net-metering battle has begun, as utilities across the US are lowering the price they are willing to pay for customer-generated electricity from solar. I am predicting a series of solar wars in the near future. They will be mainly between the existing monopoly electric utilities and the solar industry that is involved with behind-the-meter solar installations. Utilities are not against solar, as this new technology gives them another method to meet electricity demand, but what utilities dislike is their customers producing their own electricity by any means such as solar, wind, or other on-site generators. It means customers purchase much less energy from the utilities.
Up until about 2005, the United States was the leader in solar electric installations, but other countries such as Germany have become larger players. As we can see on the graph, solar was not growing much in the US until about 2011-2012.
This surge in solar installations starting in 2011 has created this first solar battle about net-metering. Before 2012 utilities in the USA had no reason to see solar as a threat to them, as the amount of revenue lost to customer self-generation was extremely small. So during this timeframe, utilities did not mind giving customers full retail credit for their excess energy.
Net-metering typically occurs between 10 am and 4 pm when a customer’s solar system is producing more electricity than the onsite loads require: the sun is shining and the occupants are off at work. This “extra” energy is sent back through the utilityowned meter and into the grid; typically, it amounts to about 20-30% of the electricity produced by the solar system.
Net-metering means full retail credit for one’s excess energy; your bill would have it energy usage reduced, and if your usage goes negative, then you get a rollover credit for you next month’s bill. The battle is about the utilities wanting to change this credit on customers’ bills so that it’s lower than the retail rate of electricity. This has started discussions about the concept of “the value of solar” for utilities in many states.
Many utilities were startled after 2012 by the large increase in rooftop solar installations. In many locations this lost revenue was still not significant, but the growth and trends were disturbing.
Utilities are regulated on a stateby-state basis by their respective public utilities commissions, or PUCs.
The first three states to enter into the net-metering battle were California, Arizona and Nevada, due to excellent solar insolation and relatively high electric rates. Earlier this year, in California, the PUC rejected any changes to net-metering, while in Nevada the PUC allowed the utility NV Energy to reduce its credit to customers by 75% reduce how much they credit consumers bills by 75%.
The Nevada decision is still being altered and reviewed, but Solar City, one of the nation’s largest residential installers, has left Nevada due to this PUC decision.
What happens next in the net-metering battle?
We had an electricity war over 100 years ago – the current wars. This battle was between Thomas Edison and George Westinghouse: Edison wanted a direct current grid, while Westinghouse fought for alternating current. This war was fierce and very public, as the solar wars are becoming today. Nikola Tesla’s patent for the inductive motor was the innovation needed to help decide the “war of the currents.” Inductive motors work with AC, not DC, so when Westinghouse licensed Tesla technology he was able to defeat Edison, and now we have the AC electric grid. Free markets today are helping to decide our solar war about net-metering. This free market competition in the solar industry has brought down the cost of solar-generated electricity to under 3 cents per kwh.
We are seeing innovation in the energy storage space. Remember the typical residential solar system only nets back to the grid about 20-30% of its production. Most of the electricity produced by a solar system is consumed directly in the home. The reason this is important is that to effectively eliminate net-metering back to the grid, you don’t need a lot of storage. Could it be a strange twist of fate that the company called Tesla can use technology, just as the firm’s namesake Nikola Tesla did, to decide this battle in energy?
The short-term impacts of the net-metering battle will adversely affect residential solar installations in the United States. This will happen on a state-by-state basis, depending on the political leanings of each state’s PUC. Here are some of states that are either in, or may soon enter, the net-metering battle: Arizona, Nevada, Maine, Florida, and Alabama.
The biggest short-term loser may be Sun Power due to its exposure to the United States residential market, and its weak cost structure as mentioned in my last article on solar.
The longer term impacts on the solar industry are much more interesting. This net-metering battle is driving innovation in the energy storage and inverter space. Tesla has already announced that it will develop the solar roof and its own inverter/storage technologies. Tesla is buying Solar City, so the combination of the two firms can continue to innovate to eliminate the need for net-metering.
In my opinion within a few years, all residential solar installations will have storage, smart inverter, and curtailment control. In this case with no electricity being passed to the utilities equipment and grid, customers will not even need to notify their utility of their new solar system – or ask for “approval.”
With these longer term impacts in mind, I see this as a positive for several companies: Enphase Energy , Solaredge Technologies, Tesla, and Aquion Energy. All these firms are spending money on research and development on smart energy storage, and have shown to be quite innovative. I do see a technological battle between lithium ion battery and aqueous flow type technology in the near future.
About the Author:
Bill Ellard is an energy economist and consultant, serving businesses, utilities, and municipalities and focusing on distributed generation implementation, solar energy, demand response, demand side management, microgrid development, facility energy management, and renewable energy integration. He can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it..
An Arizona utility can’t escape being sued for anti-trust violations for the rates it sets solely because it’s a quasi-governmental entity, at least not now — if ever, a federal appeals court ruled Monday.
The 9th Circuit Court of Appeals rejected arguments by attorneys for Salt River Project that SolarCity cannot challenge its pricing system. The appellate judges said they have no authority to consider the finding of a trial judge in Phoenix who said the challenge should be allowed to go ahead.
While Monday’s ruling is specific to SRP and its claims of immunity from suit, the implications could be broader.
Unless overturned on appeal, it means SRP ultimately could have to defend in court the rates it charges customers who want to generate their own electricity.
That could lead to rulings on how broad is the ability of utilities, all of which are monopolies, to set rates in a way that could harm other companies. And that, in turn, could impact efforts by other Arizona utilities to increase costs to solar customers.
SRP spokesman Scott Harelson said an appeal is possible.
“We would argue that ours is a statutory pricing process and that the courts have no business setting rates,” he said. But Harelson said if the case goes to court, the company believes its rate structure — and the additional charges imposed on solar customers — can be justified.
That’s the same argument that is being advanced by utilities like Tucson Electric Power and UniSource Energy which have pending rate hike requests.
Arizona Public Service has reached a settlement with SolarCity and other solar companies. But that deal is contingent on review by a hearing officer and final approval by the Arizona Corporation Commission.
Central to the debate is whether customers who install their own rooftop solar units and generate some of their own power are effectively being subsidized by others.
Attorneys for SolarCity contend SRP’s new pricing plan approved last year amounts to a “substantial penalty” on customers.
“Because solar customers are unable to completely disconnect from SRP’s grid — they still need power in the evening hours and at other times when their energy demands exceed what their solar energy systems produce — they cannot escape SRP’s penalty,” the lawsuit contends.
That penalty, according to SolarCity lawyers, is about $600 a year, an increase of about 65 percent over prior rate plans. That compares with an average 3.9 percent increase for residential customers who buy all their power from SRP.
“Customers recognize that SRP’s new pricing plan leaves them with no choice: After the effective date of SRP’s new plan, applications for distributed solar energy systems in SRP’s territory fell by 96 percent,” the lawsuit states.
All that, the lawyers contend, are part of SRP’s illegal efforts to eliminate competition and violate anti-trust laws.
SRP, for its part, contends the fact that the rates were approved by its governing board precludes the SolarCity lawsuit. Its attorneys said there was the legally required notice and comment period, public hearings, a board vote and an opportunity to challenge the board’s decision in state court, something SolarCity chose not to do.
Beyond that, Harelson said SolarCity can’t rely on antitrust claims. He said those laws “generally let businesses set their prices in a way that allows them to recover their costs, without regard to the impact of those prices on companies like SolarCity.”
That contention, Harelson said, is backed by the policies adopted by the Arizona Corporation Commission — which regulates utilities other than SRP — which concluded that utilities should be able to recover the cost of serving any particular group “and avoid shifting costs from solar customers to the rest of the customer base.” But the exact amount of what that figure is has to be decided on a case-by-case basis.
June 12, 2017