Utilities' solar-energy programs offer sunny outlook
Sue Doerfler
The Arizona Republic
May. 7, 2005 12:00 AM
Jim and Jean Arwood can thank the sun for reduced, not increased, utility rates this summer and in the future.
Through a new rebate program offered by Salt River Project, the Phoenix couple installed a photovoltaic system on their east Phoenix home. Solar panels now line their roof.
Jim Arwood expects solar electricity to account for about a third to a half of the family's electrical usage depending on the time of year, meaning a savings of $300 to $400 a year in utility bills. advertisement
The Arwoods were the first customers in the SRP EarthWise Solar Energy program, which pays up to $9,000 to residential and small-business customers who purchase and install photovoltaic systems that interconnect with SRP's system. In addition, SRP customers can apply for up to $750 to install solar water heaters in their homes.
SRP, like APS, which has operated a similar program the past three years, is offering the rebates to encourage more people to use alternate forms of energy, such as solar.
The Arwoods, who paid $12,000 for a 2-kilowatt system, received a $6,000 rebate from SRP and received an Arizona tax credit of $1,000. Arizona residents who buy solar systems are eligible to receive a state tax credit of up to 25 percent of the purchase price, with a maximum payout of $1,000.
Jim Arwood, a longtime solar-energy proponent who heads the solar-energy program at the Arizona Department of Commerce, said the reason he invested in the photovoltaic system was simple: economics.
The family's investment was $5,000. If he had kept the money in the bank, Arwood said, he would have earned about $100 to $150 a year in interest, less than the utility-bill savings. He and his wife, who have three children, have added other energy-efficient measures, including foam insulation to the exterior walls and compact fluorescent light bulbs, to their 1954 house.
At a savings of $400 a year, it would take about 12 years to recover the $5,000 investment.
SRP has designated $1 million a year for the EarthWise Solar Energy program, said Lori Singleton, the utility company's manager of environmental initiatives. The program is planned for the next six years, at which time it likely will be re-evaluated, she said.
Under the program, SRP customers receive a $3,000 rebate for a 1-kilowatt system, $6,000 for a 2-kilowatt system and $9,000 for a 3-kilowatt system. Prices range from $7,000 to $21,000 for a 1- to 3-kilowatt system.
Additionally, customers can receive a $750 rebate for a solar water heater, which costs about $3,000.
So far, 17 customers have installed solar systems, said Patricia Garcia Likens, SRP spokeswoman. Another 25 families have applied to participate, she said.
For more information on SRP's program, contact Marlene Anderson at (602) 236-2302.
In 2004, 200 Valley families participated in APS' EPS program, which also includes a solar-water-heater rebate, which is $700.
For information on APS' program, check out aps.com or call (602) 371-7171. It pays residential customers up to $4,000 per kilowatt or up to 50 percent of the cost of a photovoltaic system, whichever is lower, said Cassius McChesney, APS' solar programs services manager. The APS program has existed for three years.
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