Scott Harelson, SRP, (602) 236-2500
March 21, 2018

SRP and Tesla Finalize Agreement to Resolve SolarCity Lawsuit

Includes Commitments to Increase Battery Storage Opportunities for SRP Customers

Salt River Project and Tesla have finalized an agreement to resolve SolarCity’s 2015 lawsuit on the same terms announced earlier this month in a Memorandum of Understanding.

Terms of the agreement include the following:

  • SRP will purchase a 25-megawatt (MW) / 100-megawatt hour (MWh) battery energy storage system from Tesla, at market pricing, which will be installed at the Agua Fria Generating Station located in Glendale, Ariz.
  • SRP will initiate a three-year pilot program for solar and non-solar customers on the Customer Generation Price Plan (E-27), that, in specified circumstances, will limit the effect of an unusual demand spike on billing. This temporary pilot will help inform potential future modification to the design of the E-27 price plan.
  • SRP will initiate a Customer Storage Incentive Program, which will provide incentives to SRP’s customers towards the purchase of qualifying home energy storage systems.
  • The litigation is being dismissed with prejudice.

SRP and Tesla remain committed to providing value for their respective customers and providing renewable energy in Arizona.

SRP’s Customer Storage Incentive Program 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 program 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.

"This program will provide an excellent opportunity to conduct research that will help us learn more about how battery storage can enhance residential use of rooftop solar technology," said SRP General Manager and CEO Mark Bonsall. "The 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."

Twenty Tesla Powerwall 2 home battery systems will be part of the research project and SRP and Tesla will hold two workshops in the future to share lessons learned and results from SRP’s research.

The 25MW battery from Tesla will be installed and brought online between January 2021 and March 2021. According to Bonsall, the Agua Fria Generating Station in the West Valley provides an optimal location for a utility-scale battery storage system.

SRP is a community-owned, not-for-profit public power utility and the largest prover of electricity in the great Phoenix metropolitan area, serving more than 1 million customers. SRP is also the Valley’s largest supplier of water, delivering about 800,000 acre-feet annually to municipal, urban and agricultural water users.