Late last year, Electrical District No. 3 (ED-3) started offering a maximum $15,000 solar rebates on professionally-installed photovoltaic solar systems. The was so much interest in the program that ED-3 looked at ways to reduce popularity. Already, the response has exceded the funds set aside for the solar rebate.
The ED-3 solar rebate program is funded by a renewable energy tariff it charges customers - 30 cents a month for residential users and $12 a month for commercial. The fees help the company with $300,000 a year, which is used to continue funding renewable energy projects.
Unfortunately, these projects pale in comparison to large-scale utility companies such as Arizona Power Service (APS) and Salt River Project (SRP). These companies charge its customers between $1.88 and $3.46 a month for renewable energy projects. This will provide APS with $86.7 million in tariffs in 2010.
Despite collecting a large amount of money to fund renewable energy, APS and SRP are planning to scale down their programs. The number of solar installations in 2009 is greater than the previous 8 years combined, resulting in the funding going dry.
One way APS will accomplish this is through reducing it's maximum rebate. If APS does not takes this action, the funds set aside for this year will run out by June.
Still, thanks to the generous federal rebates and APS, a solar system costs $8,000 - $12,000 out of pocket (instead of $30,000 - $35,000). Imagine purchasing a solar system at $8,000 that will provide you with electricity for the rest of your life!
In addition, any excess energy produced by your solar system will run your meter backwards, giving homeowners a rebate on their electricity.
APS is also discussing raising fees to support these renewable energy programs. APS is discussing whether the renewable energy fees are something the residents of Phoenix would want to pay.
This brings up one important point - the residents of Phoenix pay for the solar rebates. Why would anyone pay for other homeowners to install solar systems instead of taking advantage of this great offer? Getting a solar system 60% off in a state with as much sunshine as Arizona seems like a no-brainer. |
