Arizona Bank Invests in Solar For Itself and Arizona State

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Arizona Bank Invests in Solar For Itself and Arizona State

Tuesday, August 30th 2011 4:09 PM

By GetSolar Staff.

The National Renewable Energy Laboratory hosts a variety of maps detailing the potential of solar power in the United States, and the areas of the country best-suited to take advantage of the technology. Different regions vary substantially based on the criteria used to make the map, but one thing stays consistent: Arizona is one of the states best-suited to make use of solar installations.

The NREL reports that essentially every part of Arizona sees at least 6 kilowatt-hours per square meter per day, the threshold at which the U.S. Energy Information Administration considers an area to hold "solar potential."

Despite the wealth of solar resources and huge swaths of open land across the state, Arizona has been comparatively slow to adopt solar power. While the state boasted the fourth most new solar installations in 2010 with 54 megawatts of added capacity, according to the Solar Energy Industries Association, this represents barely more than one-fifth of first-place California and less than half of second-place New Jersey. Though the SEIA reports that first quarter installations grew in 2011, the state added no utility-scale developments.

One local company has made a point to help reverse this disappointing trend for what could be the country's leading solar energy producer. The National Bank of Arizona announced in May of 2010 that it would partner with California solar installer SunPower to add $2-million-worth of solar panels to the roof of its Tucson, Arizona, headquarters, the second largest commercial Arizona solar installation to that date.

With 1,320 panels, the new solar system has a capacity of 402.6 kilowatts and is expected to produce more at least 580,000 kilowatt-hours each year. That amounts to roughly 25 percent of the building's needs.

The EIA reports that Arizona's electricity rates were a comparatively modest 9.85 cents per kilowatt-hour in February of 2010, below the national average of 10.11 cents per kilowatt-hour. Nevertheless, this still amounts to savings of more than $57,000 per year on utility bills.

Of course, this assumes electricity rates stay static. In 2009, the EIA reports electricity rates averaged around 9.56 cents per kilowatt-hour and in 2001 the state was paying only 7.27 cents per kilowatt-hour. Already by February in 2011, electricity rates had risen to 9.93 cents per kilowatt-hour. The EIA notes that in 2009 the state drew about one-third of its electricity each from coal and natural gas, both fuels that have increased in price in recent years.

"This is both an economically and environmentally sound decision," David Lyons, executive vice president of National Bank of Arizona, said in a statement. "We feel it's important to continue to expand our solar initiatives throughout the state and with Tucson being our founding city, we are excited to lead the way with one of the largest commercial solar systems."

National Bank of Arizona had already added a 222 kilowatt solar installation on a carport next to its Phoenix facilities, bringing the bank's total capacity to more than one-half megawatt. Beyond its own investments in solar power, The Arizona Republic reports that the bank has partnered with the Arizona Public Service Co. and SolarCity, another California solar installer, to start Solar Phoenix. This program is designed to offer 1,000 Phoenix residents the opportunity to add solar installations to their homes without paying any up-front costs.

With programs like this and more businesses realizing the benefits to be gained from solar power, the Arizona solar industry should see its fortunes improve in years to come.

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