SRP EarthWise Solar Energy FAQ
1. What is a solar photovoltaic system?
A solar photovoltaic (PV) system uses panels placed on the rooftops of
homes and businesses to absorb the sunlight and create electricity.
2. Are solar PV systems and solar water heating the same thing?
No, solar PV systems generate electricity for use in your home. Solar
water heaters use sunlight to directly heat water. No electricity is
created or used by solar water heaters.
3. What components make up a solar PV system?
Typical solar PV systems on the rooftops of homes feature small photovoltaic
cells joined together, called modules. Joining modules creates a photovoltaic
panel. Combining multiple panels creates an array that can be placed on a home
or building rooftop to generate electricity.
4. How does the system generate electricity?
The system generates DC electricity, so an inverter is required (to convert
the DC electricity from the PV panels to AC electricity). The inverter
also ensures the AC power is the correct voltage and quality.
Some systems also have batteries that store electricity generated by a PV
system to provide power in the event of an outage. A backup battery system
adds to the cost, complexity and maintenance of the solar PV system.
1. What is solar water heating?
A solar water heater uses the sun's energy, rather than electricity, to heat
water for use in the home.
2. How do solar water heating systems work?
Solar water heating systems feature a solar collector facing the sun to
absorb sunlight and heat the water in your home or business. Solar system
professionals can help you select the most appropriate system for your home
or office.
3. Do I have to change my lifestyle to use a solar water heater?
No, most solar water heaters are installed with a backup heating system
to ensure hot water is available at all times.
4. What other factors should I consider before purchasing a solar system?
Prior to installing a solar system, please take the following considerations into account:
- Solar technologies have high initial costs.
- It is important to take into consideration the amount of solar variation when the sun is not shining during evening/nighttime hours or during cloudy weather conditions.
- Depending on the mounting method, some systems may impact roof warranties and home insurance policies.
- Homeowner association rules may affect system selection and mounting. It is advisable to review these documents with your association before installing a system.
1. What are the advantages of solar PV?
The benefits of using solar energy include:
- Cost savings: Solar energy can reduce your electric utility bill by
approximately $160 to $500 annually depending on the size of the system
installed. Commercial customers can reduce their electric utility bill by approximately $500 to $1,600 annually, depending on the size of the system installed.
- State tax incentives: Arizona residential customers are eligible for a 25% state tax
credit, up to $1000. Also, interest deductions
may be possible for a system financed with certain types of loans.
- Federal tax incentives: Arizona residential and commercial customers are eligible for a 30% federal tax credit, up to $2,000.
2. What are the benefits of solar water heaters?
Solar water heating is beneficial for a number of reasons:
- Electricity savings: reduces the need for conventional water heating by
about two-thirds.
- Cost savings: reduces annual electricity bill by approximately $200 (depending
on size and system selected).
- State tax incentives: Arizona residents are eligible for a 25% state tax credit,
up to $1000.
- Federal tax incentives: Arizona residential and commercial customers are eligible for a 30% federal tax credit, up to $2,000.
1. Who installs solar systems?
SRP does not install solar systems, nor do we promote individual contractors.
The following Web sites provide lists of solar PV and water heating contractors:
SRP requires using a licensed contractor to ensure systems are properly installed
and meet all applicable building codes. Using a licensed contractor is required to
receive the EarthWise Solar Energy payment from SRP.
2. How can I determine if a contractor is licensed?
Please visit the Arizona Registrar of Contractors Web site or call them toll free at (888) 271-9286 to verify a contractor's license validity.
3. Are roof warranties affected by the installation of solar panels?
Installing a solar system requires modifications to a roof. Therefore, it is
advisable to refer warranty questions to the manufacturer prior to installing
a solar system.
4. Will homeowners insurance cover the installation of the solar system?
Most policies cover solar systems; however, customers are advised to
contact the insurance provider before installing a solar system.
5. What can I do if my homeowner's association restricts the installation of solar systems?
In February of 2003, the Arizona Court of Appeals ruled homeowner's associations
prohibiting the installation of a solar system violated the public policy of
Arizona as expressed in Arizona Revised Statue Section 33-439.
Please refer to this statute to learn more about the state law regarding this issue.
1. How long will my solar PV last?
Most systems last 20 years or more with proper maintenance.
Panels typically have a one-year warranty for workmanship and 20-25 year warranty
for performance. Inverters are typically warranted for a period of 5-10 years. SRP
recommends reviewing warranties with solar equipment retailers before selecting a
particular system.
2. How long will my solar water heating system last?
Properly designed and installed solar water heating systems may last 20 years
or longer. Most solar equipment retailers offer warranties ranging from 5-10 years.
3. Do solar systems require maintenance?
Yes, solar systems do require periodic maintenance checks to keep the system in
proper working condition. It is advisable to consult manufactures for further
questions regarding maintenance of solar systems.
1. What should I know when buying a home with a solar PV system?
If you purchase a home with an existing solar PV system, you have the option of
utilizing the system to generate electricity or leaving it off.
Buyers of homes interested in using the PV system should call 602-236-2302 to request an Interconnection Agreement. SRP must have a completed, signed Interconnection Agreement before the system can be re-connected to SRP's grid.
2. I am considering building a new home. Is it possible to include a solar PV
system as part of the original construction of my home?
This is the ideal time to include a PV system in your new home. Contact your builder
to discuss the possibility of installing a PV system during construction.
1. What payments will SRP provide to customers who participate in the EarthWise Solar Energy program?
For the PV program, SRP offers a $3,000 per kW payment for the purchase of a new system as follows:
For residential customers
| System size |
SRP payment to you |
| 1-kW |
$3,000 |
| 2-kW |
$6,000 |
| 3-kW |
$9,000 |
For commercial customers
| System size |
SRP payment to you |
| 3-kW |
$9,000 |
| 4-kW |
$12,000 |
| 5-kW |
$15,000 |
| 4-kW |
$12,000 |
| 5-kW |
$15,000 |
| 6-kW |
$18,000 |
| 7-kW |
$21,000 |
| 8-kW |
$24,000 |
| 9-kW |
$27,000 |
| 10-kW |
$30,000 |
For the water heating program, SRP offers a payment of $750 for the purchase of a new system. In exchange for payment, the customer allows SRP to retain the green energy credits for the electricity produced.
2. What are "green energy credits"?
"Green energy credits" or "green tags" represent the environmental attributes associated
with electricity generation from new renewable technologies like solar power and wind energy.
A renewable energy facility produces two distinct products. The first is electricity.
The second is the package of environmental benefits resulting from not generating
the same electricity – and emissions – from conventional gas or coal-fired plants.
These environmental benefits can be separated from the electrical power and packaged into
a green tag. The green tag, then, represents those collective environmental benefits.
3. Will the incentive amount stay the same over time?
Payments will decrease by $0.30 per watt each year as follows:
Application received
and approved by SRP by: |
Payment |
| Dec. 31, 2006 |
$3.00/watt |
| Dec. 31, 2007 |
$2.70/watt |
| Dec. 31, 2008 |
$2.40/watt |
| Dec. 31, 2009 |
$2.10/watt |
| Dec. 31, 2010 |
$1.80/watt |
4. What types of solar systems qualify for the EarthWise Solar Energy payment program?
To qualify for the PV program, solar panels and inverter must be UL listed. Additionally, the solar PV system must be located in SRP service territory.
To qualify for the Solar Water Heating program, systems must be OG-300 rated and located in SRP service territory. Please visit www.solar-rating.org for more information.
5. Can I apply for both a solar PV and a solar water heating payment?
Yes.
6. I already have a solar system; do I qualify for the rebate?
The eligibility date for installation of a qualifying solar PV system is Jan. 1, 2004.
The eligibility date for installation of a qualifying solar water heating system is Sept. 1, 2004.
7. After installing a PV system, will my SRP electric bill look different?
No, unless the customer would like to sell excess power back to SRP. For more
information, please review the SRP Solar
Buyback Rider.
8. I am a residential customer. Can I install a PV system larger than 3-kW?
Yes, however, SRP payments are only offered for systems up to 3-kW.
9. I am a commercial customer. Can I install a PV system larger than 10-kW?
Yes, however, SRP payments are only offered for systems up to 10-kW.
10. Can a PV system be installed to serve the needs of the house only and
not feed excess power back into SRP's electric system?
Yes, please consult with solar equipment dealers for information regarding
these types of systems.
11. Will I need a separate meter for my PV system? If so, who will install it?
Yes, a separate meter is required. SRP will provide and install the meter.
12. Are PV systems that use battery back-up eligible for the program?
Yes, however, the use of battery back-up adds to the cost, complexity and maintenance of a solar PV system.
13. Can I replace parts of an existing solar system and still qualify for the program?
No; to qualify for the program, you must install a new and complete PV or solar water heating system.
14. I want/have a solar system for my swimming pool. Do I qualify for the program?
No; this program was developed to encourage the interest in solar water heating or solar PV systems only.
15. What happens if my PV system produces more energy than I use?
Excess energy production is rolled into next month's bill as a dollar amount of credit based on buyback rates. If no excess energy is produced, no credit will be applied to the customer's account.
What is an interconnection agreement?
An interconnection agreement is an agreement between an SRP customer and SRP
outlining the rules and requirements for interconnecting to SRP's electrical
distribution system.
When is an interconnection agreement required?
An interconnection agreement is required if a customer chooses to connect their
system to the grid. Please request and review the Interconnection Agreement for more information.
Is interconnection with SRP different if I want to use battery back-up with my PV system?
Yes, systems that use a battery back-up must meet additional guidelines. Please request and review SRP's Interconnection Guidelines for Distributed Generators for more information.
If you would like more information about SRP's EarthWise Solar Energy program,
please e-mail or call the Program Manager
at (602) 236-5816.
Please direct correspondence to:
SRP EarthWise Solar Energy Program
P.O. Box 52025, PAB355
Phoenix, AZ 85072-2025
If you are interested in additional information regarding solar PV systems,
the following online resources are helpful: