Green Energy - Home Programs
Small Hydro
| TEP is offering rebates to residential and nonresidential customers to encourage the installation of Small Hydro systems. Hydropower is a renewable resource that uses water to create electricity. Location and the source of swift moving water will play a key role in the decision to invest in a hydropower system. Since water is relatively scare in the desert, solar generation or wind power may be a better option. |
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What is hydropower and how does it work?
Hydropower or hydroelectric power is a renewable resource fueled by the water cycle which is driven by the sun. Turbines and generators convert the energy produced by flowing water into electricity which is then fed into the electric grid to power homes and businesses. Three Pacific Coast states (Washington, California and Oregon) generate over 50 percent of the hydropower in the United States. The largest concentration of hydroelectric generation comes from Washington State, where the nation’s largest hydroelectric facility resides.
The water cycle Source: U.S. Department of Energy |
Water evaporates from lakes and oceans and forms clouds. The clouds produce rain or snow which then flows as runoff and fills rivers and streams which flow into lakes and oceans. The warmth of the sun evaporates the water and the cycle repeats itself. |
What are the benefits of hydropower?
- Generally, produces no emissions and is replenished naturally
- Reduces greenhouse gases if vegetation is not covered by water impoundments
- Saves one-half gallon of water consumption for each kWh of hydropower energy produced
- Saves the release of 2 lbs. of carbon dioxide (CO2) for each kilowatt-hour (kWh) produced by your small hydro system
- Saves the release of other emissions that result from the burning of fossil fuels such as nitrogen oxides, sulfur dioxide and mercury
- Hydropower is a very low-cost source of energy. On a large-scale generation basis, hydropower can cost as little as 1 cent per kilowatt-hour (kWh)
- Provides customers with options to reduce their electric bills. For every kWh produced by your small hydro system, you will avoid about 10 cents (including taxes) on your electric bill
- Improves energy security
Is hydropower right for me?
The decision to install a hydropower system is limited by a customer’s location because of the specialized nature of hydropower and the need for flowing waterways. You must have a relatively stable source of water running through your property and applicable usage rights. Note: Power produced from flowing water delivered by water mains that are pressure induced by mechanical means will not be considered for qualification under this program.
What rebates are available to TEP customers?
2008 and 2009 Rebate Schedule
| Performance Based Incentives (1) | |||
| 10-Year REC and Payment Agreement (˘/kWh) | 15-Year REC and Payment Agreement (˘/kWh) | 20-Year REC and Payment Agreement (˘/kWh) | |
| SMALL HYDRO | 0.060 | 0.056 | 0.054 |
(1) Performance Based Incentive or a (PBI) provides customers with a long term payment stream from 10 to 20 years based upon term chosen. In turn the customer would a sign a credit purchase agreement assigning TEP the Renewable Energy Credits (REC) for the same number of years.
Who is eligible for the rebates?
- You must be a Tucson Electric Power customer.
- The hydropower energy system must be installed at a Tucson Electric Power service address.
- You must purchase and install a qualifying hydropower energy system for this rebate.
- Check with your tax professional to see if you qualify for state or federal tax rebates.
- You must provide at least 15 percent of the hydropower project cost after TEP’s incentives and tax rebates.
How do I get started?
This option is only available to customers who have a stable source of water running through their property and rights to harvest that water.
- Get an estimate from a contractor who will install a hydropower system. Look in your phone book or on the Internet under “Hydropower Installers in Arizona.”
- Fill out and submit the appropriate application for your system (click on the link below).
- A TEP representative will review your application to ensure it conforms to program requirements.
- Following review of your application, TEP will notify you of the status of your reservation request.
Renewable Energy Credit Purchase Agreement
Application
Supplemental Program Information
Some helpful websites
- Department of Energy (DOE) – general information
- The National Renewable Energy Laboratory
- Hydropower facts, state resource assessment, and R&D
