FOR IMMEDIATE RELEASE
Monday, August 16, 2004
News Media Contact: Joe Salkowski (520) 884-3625
TEP Expands “Sunshare” Subsidy to Encourage Use of Solar Power
Tucson, Ariz. – Tucson Electric Power (TEP) has expanded its SunShare solar subsidy program to cover even more of the cost of installing photovoltaic systems at a home or office.
TEP customers who purchase, install and maintain their own equipment could be eligible for a SunShare subsidy of up to $4,500 on a typical 1,500-watt solar power system. The expanded incentive was approved Aug. 3 by the Arizona Corporation Commission (ACC).
“We hope this new, larger subsidy will encourage more customers to invest in solar power,” said Tom Hansen, Vice President and Technical Services Advisor for TEP.
“TEP is working with the ACC to ensure that solar power plays a significant role in Arizona’s energy future,” Hansen said. “Every customer who installs a grid-connected photovoltaic system brings us a step closer to that goal.”
The enhanced incentive is one of three options available through TEP’s SunShare program, which subsidizes the installation of solar power systems linked to the company’s local distribution system. That connection gives customers a chance to earn credits toward their TEP bill by providing excess power to the local grid.
Customers choosing SunShare Option 1 receive a subsidy of $2,000 per kW of verified AC output for solar systems they purchase themselves. Under SunShare Option 2, customers receive a $2,000 discount on a 1-kW AC solar system kit purchased directly from TEP.
The enhanced SunShare Option 3 provides incentives based on their solar system’s DC capacity. Photovoltaic panels produce DC (Direct Current) power – the same sort of energy that’s stored in automotive batteries – that must be converted to AC (Alternating Current) power for use in homes.
SunShare Option 3 offers a subsidy of up to $3,000 per kW of rated DC capacity. For a system to qualify for that subsidy, TEP must receive a completed SunShare agreement by the end of 2004 and the system must be operational within 180 days after receipt of that agreement. The subsidy will be reduced to up to $2,700 in 2005 and up to $2,400 in 2006. This year, a typical 1.5 kW DC system expected to produce approximately 2,000 AC kWh annually would be eligible for a subsidy of up to $4,500 under SunShare Option 3. The program is limited to subsidizing up to 200 kW of solar capacity per year.
TEP provides maintenance for systems purchased under SunShare Options 1 and 2. Customers who take advantage of SunShare Option 3 must maintain their own solar systems. TEP will inspect all SunShare systems at least once a year to ensure they are functioning properly.
TEP customers who install solar energy systems also may qualify for up to $1,000 in state tax credits. For more information about SunShare and TEP’s other renewable energy programs, visit www.greenwatts.com.
Tucson Electric Power Company, a subsidiary of UniSource Energy Corporation (NYSE:UNS), provides safe, reliable power to more than 370,000 customers in southern Arizona. For more information about TEP, visit www.tep.com. For more information about UniSource Energy, visit www.unisourceenergy.com.