Arizona Utilities Expand Solar Energy Incentives

September 1, 2004

Two Arizona utilities are offering new or expanded incentives for their customers to install solar power systems. Following approval by the Arizona Corporation Commissioners in early August, Tucson Electric Power (TEP) has expanded its solar power incentives to provide a subsidy of up to $3,000 per kilowatt of rated direct-current capacity for a limited number of solar power systems, and $2,000 per kilowatt of rated alternating-current capacity. TEP will not provide maintenance for systems earning the higher subsidy. According to TEP, solar power systems could also qualify for up to $1,000 in state tax credits. UniSource Energy Services (UES), TEP's sister company, is offering the same incentives. UES has also started a voluntary program for customers to add $2 to their monthly electric bill to support solar power projects in the UES service territory. See the press releases from TEP, UES and the ACC.