Scott Harelson, SRP, (602) 236-2500
March 7, 2018

SRP – Tesla Agreement

Tesla and Salt River Project Agricultural Improvement and Power District (“SRP”) have taken the first step toward resolving SolarCity’s 2015 lawsuit. They have agreed to a memorandum of understanding, which they expect to form the basis of a final resolution.

That resolution is expected to include the following elements:

  1. SRP will purchase a 25MW/100MWh battery energy storage system from Tesla, at market pricing, which will be installed at the Agua Fria Generating Station in Glendale, Arizona.
  2. SRP will initiate a 3-year pilot program for solar and non-solar customers on the E-27 price plan that, in specified circumstances, will limit the effect of an unusual demand spike on billing. This temporary pilot may help inform potential future modifications to the design of the E-27 price plan.
  3. SRP will initiate a Consumer Storage Incentive Program, which will provide incentives to SRP’s customers toward the purchase of qualifying home energy storage systems.

Tesla and SRP look forward to finalizing their agreement. Both companies remain committed to providing value for their respective customers and providing renewable energy in Arizona.

Program Details

  • SRP will purchase at market price, a 25 megawatt battery from Tesla to install at the Agua Fria Generating Station in Glendale and brought online between January 2021 and March 2021.

Additional resources

  • SRP will provide an incentive of up to $1,800 ($150 per DC-kWh) for residential customers who purchase and install qualifying battery storage systems – including Tesla Powerwall battery products.
  • The incentive will be available for up to 4,500 SRP customers on a first-come first-served basis during a 36-month period, beginning in May 2018.
  • The research project will include 20 Tesla Powerwall 2 home batteries.
  • The business relationship with Tesla gives SRP the ability to work with and learn from a company whose experience and advancements with battery storage is well known.
  • SRP and Tesla will hold two workshops to share lessons learned and results from SRP’s research.
  • SRP will study how battery storage can enhance residential use of rooftop solar technology.
  • SRP’s proposed incentive for residential battery storage systems will help build the foundation for widespread use of this technology in the future.
  • SRP’s Agua Fria Generating Station in the west Valley provides an optimal location for a Tesla utility-scale battery storage system.
  • SRP will create and recommend a new Demand Excursion Pilot Program for up to 10,000 E-27 and E-27P customers, at their option, beginning with the May 2018 billing cycle that includes a modified demand charge calculation. 
  • For the pilot rider, the billing demand is the maximum 30-minute integrated kilowatt demand occurring during the on-peak periods of the billing cycle – with the exception that the billing demand cannot be more than three kW higher than the maximum on-peak billing demand incurred in the previous 12 billing cycles.