RENEWABLE ENERGY IN THE 50 STATES: WESTERN REGION

Renewable Energy in Arizona

Summary
With Arizonas ideal combination of land area and resource potential for solar power, the state now has the second highest solar photovoltaic capacity of any state, as well as the most PV installed per capita. Research institutions and companies in Arizona are conducting research in algae-based biofuel, which is well suited for development in the states arid climate. Arizonas modest renewable energy standard of 15% by 2025 and industry recruitment measures have been successful in attracting renewable energy companies to the state, although the future of certain state incentives is uncertain.

Installed Renewable Energy Capacity, 2012

Wind Power Solar Photovoltaic Solar Thermal Electric Geothermal Power Hydropower 238 MW 1,106.4 MW 3.5 MW 0 MW 2,718 MW Marine Power Biomass Power Ethanol Biodiesel Totals 0 MW 41.2 MW 55 mGy 48 mGy 4,107 MW; 103 mGy
Sources: See Users Guide for details

Market Spotlight
The Solar Energy Industries Association (SEIA) estimates that the states net metering program will produce $34m in net benefits annually by 2015.1 Solar installations in Arizona fell 9% from Q4 2012 to Q1 2013, despite the U.S. hitting a solar installation record during this timeframe, blamed by industry advocates as the result of reduced state incentives. Construction on the 16 MW solar PV plant located at the Davis-Monthan Air Force Base in Tucson is expected to complete at the end of 2013. The plant will supply 50% of the energy needed to power the base during its first year of operation. The base will purchase the energy produced through a 25-year power purchase agreement, and the system will be owned and operated by a third party. In summer 2013, the U.S. Department of the Interior approved both the 500 MW Mohave County Wind Farm and the 100 MW Quartzite Solar Energy Project to be built on federal land in Arizona, which are expected to create hundreds of jobs and inject millions of dollars in investment into the state.

Economic Development
Employment
Green Goods & Services Jobs 2011 48,851 2011 $5.8bn $5.5m 2012 $511.2m $15.9m

Investment (Grossed-up)
Asset Finance Venture Capital & Private Equity

Sources: Bureau of Labor Statistics (BLS); Bloomberg New Energy Finance (BNEF). See Users Guide for details.

http://www.seia.org/sites/default/files/resources/AZ-Distributed-Generation.pdf American Council On Renewable Energy (ACORE) Updated September 2013

RENEWABLE ENERGY IN THE 50 STATES: WESTERN REGION

Renewable Energy in Arizona

State Policy
Renewable Energy Standard (RES) 15% by 2025 Investor-owned utilities (IOUs) and electric co-ops (representing 58.6% of states electric load) 30% of target to come from distributed generation technologies o Half from residential applications o Half from non-residential, non-utility applications Bundled renewable energy credits (RECs) acquired in any year can be used to meet existing requirements Extra credit multipliers of up to 2x per REC awarded for in-state solar installations and projects using in-state manufactured content Surcharge applied to electric utility bills to allow utilities to recover RES costs IOUs, electric cooperatives Net excess generation (NEG) credited to customers next bill at retail rate; reconciled annually at the avoided-cost rate No capacity limit or aggregate limit specified Customer owns RECs IOUs, Salt River Project Other rules vary by utility Production Tax Credits (Personal or Corporate): Wind, biomass, or solar power systems over 5 MW Paid for 10 years Individual cap: $2m/year; program cap: $20m/year Business Tax Incentives: Property tax incentives and an up to 10% income tax credit available For businesses that establish or expand manufacturing facilities or corporate headquarters in state Must pay employees above certain income level and/or invest at least $25m in facilities, equipment, land and infrastructure Residential Tax Credits for Wind and Solar (Personal): For 25% the cost of a solar or wind energy device $1,000 maximum allowable limit Unused portion carried forward up to five years Non-Residential Tax Credits for Wind and Solar (Personal or Corporate): For 10% the cost of a solar or wind energy device (includes tax-exempt entities) $25,000 maximum limit for one building in the same year, and $50,000 per business in total credits in any year Unused portion carried forward up to five years Property Tax Incentive: Utility-owned renewable energy equipment assessed at 20% its depreciated cost Personal Deduction: The cost of converting an existing wood fireplace to a qualifying wood stove is tax deductible, up to $500 Up to $75,000 to encourage use of biofuels and promote fueling infrastructure DSIRE Database: www.dsireusa.org/incentives/index.cfm?state=AZ Corporation Commission: www.azcc.gov/divisions/utilities/electric/environmental.asp Arizona Commerce Authority incentives: www.azcommerce.com/incentives Renewable Energy Mapping Project: http://renewablemap.az.gov/portal

Net Metering

Interconnection Standards Tax Incentives

Grants More Info

American Council On Renewable Energy (ACORE)

Updated September 2013