Lori Singleton Manager, Sustainability Initiatives and Technologies September 15, 2010

Lori SingletonLori Singleton

Manager, Sustainability Initiatives Manager, Sustainability Initiatives

and Technologiesand Technologies

September 15, 2010September 15, 2010

SRP’s Sustainability SRP’s Sustainability Initiatives and Programs Initiatives and Programs

209/15/2010 L.A. Singleton

Who is SRP?Who is SRP?

Established in 1903

105 year steward of the environment

Largest water supplier to Valley

Third largest public power utility in the Nation

935,000 electric customers

309/15/2010 L.A. Singleton

Established by SRP Board

2001 – Allocated $29 million; 4 year renewable program

2004 – Established sustainable portfolio (includes: renewables and energy efficiency measures) with target of 2% of retail sales by 2010

2006 – Adopted new target of 15% of retail sales by 2025

Sustainable Portfolio OverviewSustainable Portfolio Overview

409/15/2010 L.A. Singleton

Sustainable Portfolio Mix Sustainable Portfolio Mix Fiscal Year 2010Fiscal Year 2010

Energy Efficiency

25.6%

Biomass3.8%

Fuel Cell0.1%

Hydro 57.6%

Landfill Gas0.9%

Solar 0.6%

Wind 7.2%

Misc.4.2%

Total 7.4% of Retail Sales All numbers listed are approximate and have not been finalized

509/15/2010 L.A. Singleton

Solar

Hydrogeneration

Landfill Gas Wind

Geothermal

Renewable Energy ResourcesRenewable Energy Resources

Low Impact Hydro

EarthWiseEarthWise™™ Customer Customer Solar Incentive Programs Solar Incentive Programs

709/15/2010 L.A. Singleton

Solar Electric Application SubmittalsSolar Electric Application Submittals

809/15/2010 L.A. Singleton

Solar Electric InstallationsSolar Electric Installations

909/15/2010 L.A. Singleton

Solar Program ExpendituresSolar Program Expenditures

1009/15/2010 L.A. Singleton

Average Cost for Residential Solar Average Cost for Residential Solar Electric SystemsElectric Systems

1109/15/2010 L.A. Singleton

Residential Solar IncentivesResidential Solar Incentives

Solar electric

– $2.15 per watt, 5 kW or less

– Interconnection required

– Incentive provided to customer in exchange for green tags / credits

– 1,835 systems installed

– 678 systems pending

– 13.4 MW installed and pending

Solar water heating

– $0.50 per kWh energy savings rating

– 2,746 systems installed

– 479 systems pending

1209/15/2010 L.A. Singleton

Typical Residential CostTypical Residential Cost

SizeTypical

CostAZ Tax Credit

Federal Tax Credit

SRP Solar Incentive

Net Cost

5 kW $35,000 $1,000 $7,275 $10,750 $15,975

Solar Electric System

RatingTypical

CostAZ Tax Credit

Federal Tax Credit

SRP Solar Incentive

Net Cost

2,600 kWh $5,000 $1,000 $1,110 $1,300 $1,590

Solar Water Heating System

* Arizona State Tax Credit: 25%, $1,000 cap

* Federal Tax Credit: 30%, no cap for solar electric, $2,000 cap for solar water heating

1309/15/2010 L.A. Singleton

Commercial Solar Energy ProgramCommercial Solar Energy Program

Incentives paid to customers based on actual energy generation ($ / kWh) versus one-time payment

Solar electric

– $2.00 per watt up-front incentive up to 30 kW

– $0.147 per kWh for 20 years up to 300 kW

– 97 systems installed / 64 systems pending

– 13.2 MW installed and pending

Solar water heating

– $0.50 per kWh up-front incentive up to $100,000

– $0.08 per kWh incentive for 20 years over $100,000

– 21 systems installed / 33 systems pending

Solar pool heating

– $0.25 per kWh up-front incentive up to $100,000

– 19 systems installed / 7 systems pending

1409/15/2010 L.A. Singleton

Typical Commercial CostTypical Commercial Cost

* Charts do not include further savings through accelerated depreciation

Small Solar Electric System (One Time Incentive)

SizeTypical

CostAZ Tax Credit

Federal Tax Credit

SRP Solar Incentive

Net Cost Savings

30 kW $195,000 $19,500 $58,500 $60,000 $57,000 $3,840

Large Solar Electric System (Performance Based Incentive)

SizeTypical

CostAZ Tax Credit

Federal Tax Credit

Net CostSRP

Annual Incentive

Annual Savings

100 kW $650,000 $25,000 $195,000 $430,000 $23,520 $12,800

1509/15/2010 L.A. Singleton

Typical Commercial CostTypical Commercial Cost

* Charts do not include further savings through accelerated depreciation

Small Water Heating System (One Time Incentive)

Size Typical CostAZ Tax Credit

Federal Tax

Credit

SRP Solar Incentive

Net Cost

Savings

81,000 kWh per year

$90,000 $40,500 $9,000 $27,000 $13,500 $3,539

Large Water Heating System (Performance Based Incentive)

Size Typical CostAZ Tax Credit

Federal Tax Credit

SRP Solar Incentive

Net Cost

Savings

1,100,000 kWh per year

$1,500,000 $25,000 $450,000 $1,025,000 $87,610 $48,054

1609/15/2010 L.A. Singleton

Small Commercial Customer SystemsSmall Commercial Customer Systems

Optima– 8 kW system

Body Sculpting Center– 29 kW system

Integrity Building Corp.– 19 kW system

CDC Pools– 9.2 kW system

1709/15/2010 L.A. Singleton

GatoradeGatorade

Located on Gatorade / PepsiCo Distribution Center in Tolleson

Solar electric on distribution center:

− 500 kW system contains 2,448 solar panels. Spans 68,000 sq ft

− Estimated CO2 reductions of

approximately 400 metric tons per year

Solar water heating for manufacturing:

− Uses sun's light to heat water used in manufacturing process for Gatorade products

− 110 kWTH system contains 84 solar panels. Spans 9,600 sq ft

Other Solar InitiativesOther Solar Initiatives

1909/15/2010 L.A. Singleton

Community SolarCommunity Solar

20MW facility to be built in 2011 (Iberdrola)

Energy sold to customers

18 MW for school districts

− $0.09 per kWh

− Allocated among interested schools

2 MW for Residential customers

− 1 – 5 kW size options

− Price to be determined

2009/15/2010 L.A. Singleton

EarthWise Energy™ allows customers to fund solar energy projects in the community

− $3 per month

− 4,978 residential customers

− 81 business customers

New projects:

– Liberty Wildlife

– Sunshine AcresChildren’s Home

EarthWise™ Energy EarthWise™ Energy

Desert Botanical GardensDesert Botanical Gardens

The Phoenix Zoo The Phoenix Zoo

Nina Mason Pulliam Rio Nina Mason Pulliam Rio Salado Audubon Education Salado Audubon Education CenterCenter

2109/15/2010 L.A. Singleton

Solar for SchoolsSolar for Schools

Grant program to complete installation and ten year maintenance of solar PV systems on Valley schools

Educational materials and educator training related to solar energy

Allows students to monitor energy output and use data for “real-world” math learning and application

12 schools in Phoenix Metro and 2 schools in Northern Arizona have been awarded 10 kW systems

Projects to be completed by theend of 2010

2209/15/2010 L.A. Singleton

Tessera Solar / Stirling Energy Tessera Solar / Stirling Energy SystemsSystems

Tessera Solar, Independent Global Power Producer, exclusively responsible for the worldwide deployment of the SunCatcher™ Solar Dish

Stirling Energy Systems, Scottsdale-based company, formed in 1996, manufacturer of SunCatcher™ Solar Dish Maricopa Solar Plant

2309/15/2010 L.A. Singleton

Tessera Solar / Stirling Energy Tessera Solar / Stirling Energy SystemsSystems

1.5 MW Plant (Maricopa Solar) consists of 60 SunCatcher™ Solar Dishes

− 38 ft tall, 40 ft wide, 25 kW, 40 mirrors

− Dish concentrator tracks, collects and focuses the sun’s rays to produce heat

− Stirling Engine converts thermal energy to electricity

Maricopa Solar Plant

2409/15/2010 L.A. Singleton

Dedication and ribbon cutting ceremony on January 22, 2010

Project provides hands-on access to performance of the technology, grid integration

Local company, economic development, green jobs

Low water use (fraction of acre ft / year)

Project helps establish Arizonaas a solar energy leader

Maricopa Solar PlantMaricopa Solar Plant

Maricopa Solar Plant Ribbon Cutting & Dedication

2509/15/2010 L.A. Singleton

Partner with DMB on 40 − 50 acre solar technology demonstration park

− DMB would own site

− Solar companies would lease location

− SRP would purchase energy and RECs

Targeting 3 − 4 projects, 1 MW each

Select new solar technologies past R&D stage, but not yet demonstrated at MW scale in US

Discussions with numerous solar companies

DMB Solar Demonstration ParkDMB Solar Demonstration Park