White Paper | Arizona Research Institute for Solar Energy

The Solar Investment: A Financial Analysis of Residential Photovoltaic Systems in Arizona

This report presents an analysis of the financial returns that a photovoltaic system can provide for the average Arizona household. Special attention is given to construct a full comparison between the financial payoffs of a 4.5 kW photovoltaic (PV) system and an alternative long-term investment, such as a bond or certificate of deposit. The comparison shows that homeowners investing in solar energy can earn healthy untaxed returns, while gaining a hedge against future increases in electricity costs.

Numerical figures used for this analysis are largely reflective of statistical means.

Visionary Integrated Resource Planning to Advance Solar Energy in Arizona

At present, Arizona does not have a functioning resource planning process, but the Arizona Corporation Commission is considering revising its suspended planning requirements. Community leaders should support the reinvigoration of resource planning in Arizona and use the planning process as an opportunity to prepare and advocate a visionary solar energy plan in order to influence utilities and regulators.

Integrated resource planning is a formal regulatory process in which electric utilities compare a wide range of supply and demand side resources and prepare a long range plan for meeting the demand for energy services. The public may participate in the resource planning process. Regulators review utility plans and may approve or acknowledge them. Plans to acquire solar energy resources – both central station and those sited at consumers’ premises -- can be made through this process.

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Designating Land for Solar Development

This paper provides background on and the rationale for identifying and designating land, information on regional and state efforts underway to identify suitable land for solar energy (commonly known as Renewable Energy Zones), an overview of the disconnect between transmission and solar energy planning, the benefits of designating land for solar energy development, and recommendations on actions to help identify and designate land.

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Utility Sector Incentives and Disincentives for Renewable Energy

This paper addresses utility sector economic incentives and disincentives and their impact on the deployment of renewable energy.

No matter what the regulatory approach, regulation necessarily presents utility managers with a set of economic incentives or disincentives which may favor or disfavor the deployment of renewable energy. Regulators should be attuned to these incentives in their decision making and strive to align them with public policy objectives.

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An Analysis of the Quality Jobs through Renewable Industries Program

Today, Arizona has a real opportunity to initiate this cumulative process of development. One can already witness the forces that economic theory describes at work in certain parts of the state. Arizona will undoubtedly be a hub of solar power generation, with the world’s largest generation plant being developed in Gila Bend by the Spanish company Abengoa. Further, Arizona will also be the home of consumption of solar power. However, the element Arizona is missing is the high-tech manufacturing facilities needed to make the panels to conduct solar power. Within the solar industry chain, these facilities yield the most economic benefit to a state.