SMALL WIND in
 ARIZONA 

This page provides information specific to buying and installing a small wind turbine in Arizona.

AWEA’s Web site also contains general information that is helpful regardless of which state you live in, including a Communications Toolbox for Wind Energy Advocates. You will find the information below more useful if you first read the general information available in the small turbine section.
Net Metering

There is no statewide net matering in Arizona. It is offered by some electric utilities in the state to help encourage renewables to interconnect with the utility grid. Generally these policies let the homeowner offset some of the costs of purchased electric power by selling surplus electric power back to the utility. The net period can be monthly or annual. It is necessary to check with the utility serving a specific address to determine whether net metering is available as an option.
FYI:
For general information about net metering, please read Net Metering - Frequently Asked Questions.

Tucson Electric Power Company - Net Metering

Tucson Electric Power Company (TEP) offers net metering for solar and wind systems with an AC peak capacity of up to 10 kW. TEP credits net excess generation to the following month's bill. At the end of the year, any remaining credit is granted to the utility. Total net-metered capacity in TEP territory is limited to 500 kW. As of September 30, 2004, a total of 35 customers had signed up for the net metering program, providing solar generation capacity of 76 kW (DC).  For more information contact TEP . Information on their solar program is available online; contact their net metering representative about wind.

Salt River Project - Net Metering

Salt River Project (SRP) began offering net metering to residential customers using Standard Price Plan E-23 or E-26 on June 1, 2004. The program is available for solar-electric systems with an AC peak capacity of up to 10 kW, and not stated for wind. An interconnection/generation agreement is required. For more information or questions contact SRP.
 
 

Interconnection Standards 

In July of 1999, the Arizona Corporation Commission initiated a general investigation of distributed generation and interconnections for potential retail electric competition. The final report (PDF 105 KB), issued June 28, 2000, documented the results of that investigation. The final report included identifies key stakeholder issues and makes recommendations for developing standards, policies, and tariffs for distributed generation through the rulemaking process. Recommendations include: design fair and reasonable tariffs, c onsider the benefits and costs of distributed generation to the utility distribution grid, address operational issues, such as the scheduling and accounting of distributed energy.

As of July 2002, each utility had adopted special contracts for the interconnection of distributed generation. Until the commission adopts formal rules, the utilities have been instructed to use these special contracts for distributed generation. More information, including reports from the Distributed Generation & Interconnection Working Group, is available on the Arizona Corporation Commission Web site.

Environmental Portfolio Standard

Arizona is in the process of revising its Environmental Portfolio Standard during 2005. In Decision No. 63364 (dated Feb. 8, 2001), Arizona implemented an Environmental Portfolio Standard whereby any load-serving entity that sells electricity or aggregates customers for the purpose of selling electricity must derive at least 0.2% of the total retail energy sold from new solar resources or environmentally-friendly renewable electric technologies. For additional information, see Distributed Generation and Interconnection Rules, Decision No. 63364
(PDF 80 KB) Download Acrobat Reader.

Arizona’s Environmental Portfolio Standard (EPS) became effective in 2001. Under the standard, regulated utilities in the state are required to provide a certain percentage of their electricity from renewable energy. The standard begins with 0.2% renewables for 2001 and increases to 1.1% renewables according to the following schedule.  

0.2%-----------------2001  
0.4%-----------------2002  
0.6%-----------------2003  
0.8%-----------------2004  
1.0%-----------------2005  
1.05%---------------2006  
1.1%-----------------2007 - 2012  

Of these amounts, solar-electric must make up 50% in 2001, increasing to 60% for 2004 through 2012. Applicable technologies include solar-electric (photovoltaics), solar water heating and solar air conditioning, landfill gas, wind, and biomass.

Funding for the EPS comes from existing system benefits charges and a new surcharge to be collected by the state’s regulated utilities. For more information contact the
Arizona Corporation Commission.
 

Local or State Incentive Programs for Wind Energy Investments

Solar and Wind Energy Systems Credit

Arizona's Solar Energy Credit provides an individual taxpayer with a credit for installing a solar or wind energy device at the taxpayer's Arizona residence. The credit is allowed against the taxpayer's personal income tax in the amount of 25% of the cost of a solar or wind energy device, with a $1,000 maximum allowable limit, regardless of the number of energy devices installed. The credit should be claimed in the year of installation. If the amount of the credit exceeds a taxpayer’s liability in a certain year, the unused portion of the credit may be carried forward for up to five years. For more information contact the
Arizona Department of Commerce.

Solar and Wind Equipment Sales Tax Exemption

House Bill 2433, passed in 1991, established a sales tax exemption for solar and wind energy equipment purchased from a retailer. Contractors may sell solar and wind energy equipment to customers without charging a state sales tax. To do so, they must register with the Arizona Department of Revenue (ADOR), filing Arizona Department of Revenue Form 6015 - Solar Energy Devices. The 2003 bill also clarified that the deduction cap of $5,000 applies to the contract, rather than each energy device. The exemption is for taxable periods from and after December 31, 1996 and ending before January 1, 2011. Qualifying wind systems include wind electric generators and wind-powered water pumps. The sales tax exemption does not apply to batteries, controls, etc. that are not part of the system.  
 
Most cities have a 0.5 to 2% sales tax that still must be collected and reported for either of these exemptions unless the cities specifically exempt solar devices. For more information contact the Arizona Department of Commerce.

 
Wind Resource Information

The US Department of Energy has produced wind resource maps for each state. The map for Arizona can be found here. You may also find the definitions of Wind Power Classes for the maps helpful.

The US Department of Energy’s Energy Efficiency and Renewable Energy Network has also collected wind resource data for Arizona.

You may also find useful information at the web site for the National Renewable Energy Laboratory (NREL).
Additional Resources

The American Wind Energy Association provides a list of wind turbine manufacturers
For a list of wind turbine installers in your area, please contact the manufacturers.

Focus on Energy supports a Wind Maps and Data center, which has multiple resources for small wind.

Source Guides offer a list of renewable energy companies in each state. To see companies in AZ, visit their website.
Utility Contacts

For more information about Arizona Electric Utilities visit the
Arizona Corporation Commission (ACC), which oversees the electric power industry in Arizona. To get power to your home or business, utilities or their affiliates provide power generation, high-voltage transmission and low-voltage distribution. Power can be purchased from another company or generated at a power plant owned and operated by a traditional utility.
Government Contacts

The US Department of Energy’s Energy Efficiency and Renewable Energy Network maintains a list of state contacts.

The US Department of Energy Office of Energy Efficiency and Renewable Energy has published a Small Wind Consumer's Guide for AZ. ( PDF 2.1 MB).
Local Organizations Interested in Renewable Energy Issues

Wind Working Group

An Arizona State Wind Working Group has been formed under the auspices of the Wind Powering America program to identify specific state concerns, barriers, and obstacles to wind development in Arizona. The working group is a collaboration of government agencies, nonprofit organizations, businesses, and industries interested in wind development. All interested parties are welcome to participate. For more information contact
Tom Acker, Northern Arizona University, 520-523-8363.

Southwest Wind Power

Southwest Wind Power is a Flagstaff Arizona-based company that is a world leader in the production of small 400-3,000 watt wind generators. Southwest is now also selling the 1000 watt Whisper turbine. For more information see their website.

The Arizona Solar Center

The Solar Center is a non-profit serving as Arizona’s source for solar energy information. On their website you can explore technologies, including photovoltaics, solar cooking, solar water heating, solar architecture, wind power, and hands-on activities for the classroom. For more information see their website.
Feedback
Keeping an information database such as this one useful and up-to-date requires feedback from people using the site. If you have comments or ideas about how to improve this site, please contact: kathy_belyeu@awea.org  Be sure to mention not only your ideas, comments or criticisms, but also the specific URL (Web address) for the page.

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