The idea behind the reduction is two-fold. First, a lower per-watt solar rebate will enable TEP to keep the incentive program funded through the end of the year. Originally, the rebate program for PV residential systems stood at $3.00 per watt. After the reduction, the rebate now stands at $2.00 per watt. The rebate for PV commercial systems when the program began was $2.50 per watt. Now, the rebate for such systems is $1.75 per watt, and will soon be reduced to $1.50 per watt.

Second, the cost of installing solar PV in Arizona has come down considerably over the past 18 months. Because home solar electric systems cost relatively less, so the logic goes, the amount of incentive dollars available to promote the adoption of solar power should likewise be brought down.

It bears noting that, even at the new level, TEP’s solar rebates still represent a great deal when compared to rebate programs in many other parts of the country.

It also bears noting that there is a maximum incentive for TEP rebate. When it comes to residential solar power systems, for instance, the rebates only apply to the first 20 kilowatts (kW). You can find all the information about Arizona solar rebates and related program on our Arizona solar energy incentives page.

a

Before beginning this newest project, REC still has some loose ends to tie up. REC Solar will complete a single-axis tracker-system at the same facility by the end of this month, according to Solar Industry Magazine. A single-axis tracker, which gives the solar panels one axis of rotation to follow the sun throughout the day, can help boost electricity output.

This newest installation that REC will soon begin working on will be added to the nearly completed PV array, and together they are expected to pump out 5.2 million kilowatt-hours (kWh) annually. That is enough solar-generated electricity to power over 500 average homes in the United States for a full calendar year.

These Arizona solar electric installations are part of the plan outlined by the U.S. Department of Veterans Affairs in mid April of this year to add solar energy systems to its facilities in Texas, California, Nevada and Arizona. And in early January, the Department of Veterans Affairs contracted the Hudson Valley solar installation firm SunWize Technologies to upgrade current solar energy systems at a number of hospitals across the country.

a

Why? Faced with dwindling rebate funds, the Arizona utility has asked state regulators for permission to cut the rebate to $2.25 per watt from $3.00 per watt. The proposed cut would begin with rebate applications received after July 7. TEP says that its customers have already cashed in on $12.2 million of the $17.6 million available for this year. The Arizona utility notes that at this rate the rebate dollars will be gone by August, but scaling them back would allow more customers to benefit from the program.

This year, nearly 1,100 TEP customers have received the SunShare rebate for an Arizona solar home photovoltaic (PV) system — more than in the past nine years combined. As we’ve noted before, the Tucson Electric solar rebate has in 2010 been among the nation’s highest in per-watt terms. Couple this fact with falling solar PV costs, and you can begin to see why so many Arizona residents have been installing solar panels: it’s a great investment.

TEP says that since the cost of installing solar has dropped, it makes sense that the incentive be scaled down with it. The goal at the end of the day, according to Katharine Kent, president of The Solar Store, is for the solar industry to eventually stand on its own without government incentives.

Bottom line: even at $2.25 per watt, the TEP solar rebate will go a long way to offset the cost of installing solar in Arizona. If you’re a TEP customer who’s thinking about going solar, you best shake a leg: these rebates won’t last forever.

a

The Arizona solar projects would go up in the greater Tucson area and, if all goes according to plan, could begin feeding energy into the grid as early as 2011. All ten are currently in the planning stages and are awaiting approval.

The projects are broken up into three different types of solar generation: three of them will use fixed photovoltaic (PV) panels; four will implement single-tracking devices to harness solar energy; and the remaining three will use concentrated solar power (CSP) technology.

Under Arizona’s Renewable Energy Standard (RES), utilities are to meet 15 percent of their customer’s electricity demands with renewable energy by 2025. Tucson Electric Power’s solar projects would help meet that goal.

a

As announced by Arizona Governor Jan Brewer earlier this week, the Arizona Department of Commerce Energy Office has awarded nearly $640,000 in renewable energy project grants for 14 different non-profit organizations statewide. Funding has been available through the American Recovery and Reinvestment Act (ARRA).

Most of the 14 organizations are located in Phoenix. Two recipients, the Red Cross of Southern Arizona and the Southern Arizona Aids Foundation, are in Tucson (a city where the utility Tucson Electric Power (TEP) offers one of the best solar rebates going), and two are in Flagstaff. All told, 77 applications were received. See left for a rundown of the winning organizations, courtesy of Governor Brewer’s office.

Installations that qualify for Department of Commerce grants include solar hot water heaters, photovoltaic (PV) electric systems and solar daylighting systems. The idea is that, by alleviating some of the organizations’ operating costs (by reducing electricity bills), the grants free up resources so that the non-profits can serve more Arizona residents. Grants to each non-profit organization were capped at $50,000.

“We’re moving swiftly to invest Arizona’s stimulus dollars into projects that should help boost the State’s economy and provide significant long-term energy savings,” said Gov. Brewer in a press release addressing the investment.

The allocation was spurred by a $55.4 million grant through the State Energy Program (SEP) to the Arizona Department of Commerce Energy Office.

a