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Market Spotlight: ARIZONA

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ARIZONA

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Welcome! Here you will find market highlights, pricing, requirements, and other market-specific information about Arizona.

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IMPORTANT MARKET INFORMATION

Arizona Service Area

Our service area covers South-Central Arizona including the major cities of Pheonix, Tucson, Mesa, Chandler, Scottsdale, Glendale, and surrounding areas. In certain areas travel adders are required, as indicated on the following map. 

Arizona Solar Coverage Map
Arizona Solar Installation Travel Adder Map

Solar Installation Map For: 

  • Solar Installation Phoenix, AZ  (Surrounding Areas)

    Solar Installation Scottsdale, AZ (Surrounding Areas)
    Solar Installation Tucson, AZ 
    (Surrounding Areas)
    Solar Installation Chandler, AZ 
    (Surrounding Areas)
    Solar Installation Flagstaff, AZ 
    (Surrounding Areas)
    Solar Installation Prescott, AZ 
    (Surrounding Areas)
    Solar Installation Lake Havasu City, AZ 
    (Surrounding Areas
    )

Below is a map of  installations in Arizona, updated May 2023

Solar Installation Map for Arizona

Overall Project Timeline - Arizona

 

How long does it take to install a project in Arizona?

The average time it takes from a signed contract to a complete installation in Arizona is between 90-95 Days. Once the installation is complete, the average time to Permission to Operate (PTO) is between 25-35 days. This is the state average, and while some projects can be installed faster or take longer, it is best to set a conservative expectation with your customers.

The average timeline from Contract to Installation:

91 Days

The average timeline from Installation to PTO:

30 Days

Are there any additional considerations that may extend the project lifecycle?

The following areas have regulations or guidelines for solar projects that may require additional steps or result in extended project lifecycles:

  • Ground Mounts: Due to permitting and installation requirements, ground-mounted solar projects may be delayed depending on the local AHJ.

  • Main Panel Upgrades: Projects that require a main panel upgrade in Arizona may see extended project lifecycles between 30-60 days due to additional installation steps required by local authorities.

  • Roof Work: When selling projects with roof work in Arizona, project cycle times may be delayed by 30-60 days.

 

 

 

How long does utility approval take?

For most utilities in Arizona, utility approval for PTO generally occurs 1-2 weeks after inspection is passed.

Arizona Public Service Company (APS):

Average timeline to Installation Approval:

2-4 Weeks

Average timeline to PTO:

2 Weeks

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Tucson Electric Power Company (TEP):

Average timeline to Installation Approval:

2-4 Weeks

Average timeline to PTO:

2 Weeks

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UNS Electric:

Average timeline to Installation Approval:

1 Week

Average timeline to PTO:

2 Weeks

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Columbus Electric Cooperative:

Average timeline to Installation Approval:

1 Week

Average timeline to PTO:

2 Weeks

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Duncan Valley Electric Cooperative:

Average timeline to Installation Approval:

1 Week

Average timeline to PTO:

2 Weeks

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Garkana Power Association:

Average timeline to Installation Approval:

1 Week

Average timeline to PTO:

2 Weeks

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Mohave Electric Cooperative:

Average timeline to Installation Approval:

1 Week

Average timeline to PTO:

2 Weeks

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Navopache Electric Cooperative:

Average timeline to Installation Approval:

1 Week

Average timeline to PTO:

2 Weeks

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Sulphur Springs Valley Electric Cooperative:

Average timeline to Installation Approval:

1 Week

Average timeline to PTO:

2 Weeks

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Trico Electric Cooperative:

Average timeline to Installation Approval:

1 Week

Average timeline to PTO:

2 Weeks

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Are there any additional considerations for utility approval and cycle times?

Yes. In the event that Power Shut-Off is required for additional electrical work or installation in Arizona, this may require additional time for utilities to review and approve installation or PTO.

 

 

Utility Approval Cycle Times - Arizona

Permitting Approval Cycle Times - Arizona

How long does AHJ approval take?

Based on Powur’s experience across the state of Arizona, the average Cycle Time for permitting approval is 28 days.

We will be updating this section with more location-specific information when it becomes available. Until then, it is a safe assumption that permit approval will take 4-5 Weeks for solar projects in Arizona.

Are there any additional considerations for permitting and approval times?

Yes, Arizona is beginning to adopt an online permitting system through SolarAPP. This will provide instant permit approvals and will continue to decrease overall project cycle times.

 

Are there any additional considerations for permitting and approval times?

Yes, Arizona is beginning to adopt an online permitting system through SolarAPP. This will provide instant permit approvals and will continue to decrease overall project cycle times.

 

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ARIZONA
Net Metering Information

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ARIZONA
Net Metering Information

 

What is the Net Metering Policy in Arizona?

Net metering has largely been phased out due to Arizona Corporation Commission in 2016. In some cases, rooftop solar customers in certain areas may still be eligible for net metering. Additionally, rooftop solar customers who installed solar while Net Metering was available continue to receive net metering rates. The export rate has taken the place of net metering.

What is Arizona's Export Rate?

In the same way that utilities set the rates for electricity, the utilities in Arizona are able to set the rate that homeowners receive credit for exporting solar electricity to the grid. The export rate for solar customers is typically less than historical net metering rates.

Under the current rules set by the Arizona Corporation Commission, the export rate at the time a customer goes solar is locked in for 10 years. Every October, the export rate is scheduled to decrease by up to 10% and will reset for new solar customers.

How does the Export Rate effect solar customers?

For new customers, the longer a homeowner waits to go solar, the lower the export rate will be, and the less credit they will receive for excess solar energy.

For more information, click here.

 

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ARIZONA
Rebates And Incentives

ARIZONA
Rebates And Incentives

Are there any statewide rebates in Arizona?

Yes! Arizona has a number of solar energy programs:

Residential Solar Tax Credit: The Residential Arizona Solar Tax Credit reimburses homeowners $0.07/Watt based on the solar project size. This credit is available up to $1,000 and is applied to the personal state income tax in the year the system is installed. For more information, click here.

Equipment and Property Tax Exemptions:

Solar customers are exempt from sales tax on the purchase of your solar system or additional property taxes based on the value added to the customer's home from installing solar panels.

Are there any utility or municipality rebates in Arizona?

Yes! Below are details about the following utility-based solar incentives:

Arizona Public Service Company (APS): Arizona Public Service Company utility offers two riders that allow homeowners to save money when installing solar panels.

RCP (Resource Comparison Proxy): RCP is a net billing solar purchase rider, it measures excess power production and provides a monthly bill credit based on the current RCP purchase rate. The credit will apply towards the APS bill amount each month, and any remaining credit will roll over to the next month’s bill. At the end of the year, APS will issue a refund check if monthly bill credits are more than $25.

Eligibility for the RCP rate rider:

      • Electricity must be generated using on-site solar panels

      • Solar panels must be interconnected to the APS grid

      • Solar panels must be installed at the service address

      • Homeowner must have an AMI meter

      • The RCP export rate is subject to the requirements found in the Arizona Administrative Code Distributed Generation Interconnection Requirements, the Interconnection Manual, and the Electric Service Requirements Manual

EPR-2: EPR-2

 is a net billing renewable energy rider. It measures excess power production and provides a monthly bill credit based on the current EPR-2 purchase rate. The credit will apply towards the APS bill amount each month, and any remaining credit will roll over to the next month’s bill.

Eligibility for the EPR-2 rate rider:

      • Must have a qualifying onsite generation such as solar power, wind power or others

      • Must have a generating nameplate capacity of 100 kW-ac or less

      • Must have an AMI meter

For more information about these APS Riders, click here.

What is the Resource Comparison Proxy (RCP)?

The Arizona Corporation Commission (ACC) established the Resource Comparison Proxy (RCP) in September 2018 to compensate residential and small commercial customers for excess power produced by private rooftop solar systems.

The RCP is based on average market costs over a recent five-year period. The rate is usually adjusted annually, but customers are compensated for up to 10 years at the RCP export rate in place at the time they requested the interconnection of a new solar power system. Because solar energy prices have fallen over time, this rule has allowed customers to preserve higher export rate benefits.

The current RCP export rate is $0.932 per kWh, effective from October 1, 2021 through September 30, 2022.

From October 1, 2022 through September, 2023, the RCP rate is $0.0839 per kWh.

For more information, click here.

What utilities have a Resource Comparison Proxy (RCP)?

The RCP is confirmed to be available from multiple utilities including Arizona Public Services, Tucson Electric Power, and Unisource Energy Services. For other utility companies, it is best to inquire directly with the company website or contact them for updated information.

Are there any additional resources for rebates and incentives in Arizona?

Some other utilities may offer incentives or rebates for solar customers in Arizona. You can find up-to-date information about available rebates related to renewable energy and efficiency projects here: https://programs.dsireusa.org/system/program/az.

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