Energy-Efficiency Funds and Demand Response Programs, Arizona

Updated July 2007

What public-purpose-funded energy efficiency programs are available in my state?

Arizona's restructuring law provides for a systems benefits charge to fund energy efficiency programs. The SBC is collected through a non-bypassable surcharge on electricity bills. Annual funding for energy efficiency is about $20 million. However, some of these funds have been transferred to pay for renewable energy, and most of the existing energy-efficiency programs funded through this charge are not available to federal facilities. Nonetheless, federal customers may take advantage of the following programs:

The Salt River Project and Tucson Electric offer the Business Energy Advisor, which provides on-line facility energy audits to small- to medium-sized customers.
SRP Lighting Solutions offers a free onsite analysis of the facility's lighting system and a detailed report recommending improvements.

What utility energy efficiency programs are available to me?

For information on utility energy efficiency programs, see the previous section.

What load management/demand response options are available to me?

Arizona utilities do not currently offer load management/demand response programs to federal customers.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewable Energy (DSIRE) provides information on programs that offer incentives for renewable distributed generation. The following programs may of interest to federal customers:

Tucson Electric offers the SunShare Program, which pays the customer up to $2,500 per kW (DC) for qualified solar electric generating capacity, up to a maximum of 100 kW.
UniSource Energy Services offers its own version of the SunShare Program, which provides rebates of up to $3,000 per kW of DC-rated PV capacity.
The Salt River Project sponsors EarthWise, which offers rebates of $3/watt (DC) for photovoltaic (PV) systems sized up to 10 kW, with a maximum payout of $9,000; $2.50/watt for larger PV systems (up to $500,000 per system) and $0.50/installed kWh for solar-assist hot water systems. However, customers must agree to let SRP take ownership of the renewable energy credits from their systems.
Through the EPS Credit Purchase Program, Arizona Public Service offers customers who install a PV system the opportunity to sell the credits associated with the energy to APS. For grid-tied systems, commercial customers may choose from a credit of $2.50/Watt DC (up to $500,000), or a production-based incentive.

Are there energy efficiency programs sponsored by the state government?

No state energy efficiency programs are currently available to federal customers. For information on future opportunities, contact the Energy Office at the Arizona Department of Commerce.

What additional opportunities are available to me?

Federal customers whose utilities have area-wide contracts with GSA and, by extension, all other federal agencies (e.g., Arizona Public Service, Continental Divide Electric Cooperative, Navajo Tribal Authority, and Tucson Electric Power), may take advantage of additional energy efficiency opportunities. Federal facilities should contact their account executive to determine the level of each utility's participation.