New Study: Distributed Solar Energy Provides $34 Million in Benefits to Arizona Ratepayers

A study released today shows that distributed solar generation (DG) and net energy metering will provide Arizona Public Service (APS) customers with $34 million in annual benefits.

The study was commissioned by the Solar Energy Industries Association (SEIA) and was authored by Tom Beach of Crossborder Energy. Using data from APS’ 2012 Integrated Resource Plan and other APS data, the study examines the costs incurred and the benefits generated by distributed solar over the useful life of a distributed solar system — 20 years. This is consistent with how APS approaches long-term resource planning.

The study found that for each dollar of cost, DG provides $1.54 worth of benefits to APS customers. The net benefits for APS customers will amount to $34 million per year beginning in 2015. Benefits include savings on expensive and polluting conventional power and power plants; reduced investments in transmission and distribution infrastructure; reduced electricity lost during transportation over power lines, as distributed solar power is generated and consumer locally; and savings on the cost of meeting renewable energy requirements.

“This study clearly shows that solar offers concrete net benefits to all APS ratepayers, regardless of whether or not they have installed solar” said Carrie Cullen Hitt, senior vice president of state affairs at the Solar Energy Industries Association (SEIA). “It’s essential that we keep smart policies like net metering in place so that Arizona can continue to benefit from its abundant solar resources.”

Net metering is a popular consumer policy in place in 43 states that empowers homes, businesses, schools, and public agencies to install solar while helping the economy and other ratepayers. As a result of thousands of Arizonans’ choice to adopt rooftop solar, a competitive solar energy industry employs 9,800 Arizonans today. Arizona boasts the most solar per capita of any state in the nation with 1,097 megawatts (MW) of solar capacity. Beyond making a smart energy choice, this study shows that these customers’ investments provide financial benefits to all APS customers. Overall, Arizona ranks 2nd in the country for most installed solar, with enough capacity to power 139,000 homes. In 2012 alone, $590 million was invested in Arizona to install solar on homes and businesses.

“Arizona has become a national leader in the use of distributed solar energy. This is due to net metering and other policies put into place by the Arizona Corporation Commission and Legislature. In order to maintain this leadership role, it is imperative that these consumer-friendly policies remain in place,” says Michael Neary, former executive director of AriSEIA, the Arizona SEIA chapter.

Crossborder Energy has deep analytical experience in the energy field, and has participated actively in many of the major energy policy debates over the last 30 years, including the addition of new natural gas pipeline capacity to serve California and the restructuring of the state’s gas and electric industries. Crossborder Energy provides expert testimony, strategic advice, market intelligence, and economic consulting services on market and regulatory issues in the natural gas and electric industries in California, the western U.S., Canada, and Baja California, Mexico.

Established in 1974, the Solar Energy Industries Association® is the national trade association of the U.S. solar energy industry. Through advocacy and education, SEIA and its 1,000 member companies are building a strong solar industry to power America. As the voice of the industry, SEIA works to make solar a mainstream and significant energy source by expanding markets, removing market barriers, strengthening the industry and educating the public on the benefits of solar energy. www.seia.org

Source: SEIA

For more information on: SEIA