Production Based Incentives for Solar Process & Space Cooling

Production Based Incentives (PBIs), are available on a competitive basis for non-residential customers installing solar process & space cooling systems and are paid quarterly based on the actual kWh the system saves each year as measured by an accumulating BTU meter connected to your system. Once your project is approved, incentive funds are reserved for the duration of your production contract with APS (either 10, 15 or 20 years based on customer preference).

There are two tiers of PBI projects, based on project size. Each tier has different competitive funding periods as noted below. Incentive applications received each period will be given a ranking score using the APS PBI Ranking Calculator and will be ranked against other applications within the same tier and received during the same period.

When submitting an application you may request up to the maximum incentive amount allowed according to the Non-Residential Renewable Energy Incentive Chart, however, projects requesting less incentive per kWh of production will generally receive more competitive scores. Applications are due the last business day of the respective period.

Because we typically receive requests for more funding than we have available, it is likely that not all projects will be funded in any given period. Also, since this is a competitive process, “winning scores” changes each period based on the volume and scoring of applications we receive. While we cannot give any specific guidance regarding competitive scoring, we do publish the cutoff scores from the most recent period (meaning every project receiving funding had a score equal to or lower than the score published).

In order to qualify for a production based incentive, your total incentive request must be more than $75,000. Systems not meeting this requirement may apply for an incentive using our up-front incentive program.

For solar process & space cooling systems which are requesting up to $2.5 million in lifetime incentive payments, funding is equally divided into six bi-monthly allocation periods. 

1. January and February
2. March and April
3. May and June
4. July and August
5. September and October
6. November and December

For solar process & space cooling systems requesting more than $2.5 million in lifetime incentive payments, funding is awarded on a competitive basis two times each year. Applications must be received by the nomination period deadlines of February 28 or August 31 respectively.

Your installer will most likely be familiar with the qualification process, but you should familiarize yourself as well. Please note that in order to have your project considered for funding you must submit a complete reservation request form linked below along with all required documents, including a copy of a signed contract with your installer or developer (the contract can be contingent on receiving APS funding).

Before you apply:

• Review the Production Based Incentive reservation request - Solar Process & Space Cooling to make sure you will be able to provide all of the necessary documentation at the time you make your funding request.
   
• Review the decision process to see how APS determines if your request for funding is approved and when you can expect to receive a funding decision.
   
• View the PBI Ranking Calculator (MS Excel) so that you have an understanding of how your project will be scored.
   
• Review the Equipment Qualification & Installation Guidance – Solar Process & Space Cooling for information on technical requirements for your project.
   
• Review the Non-residential Incentive Timeline for information on the process flow and corresponding milestones which will help you stay on track to receive your incentive. Systems receiving a production based incentive must be installed within 365 days of receiving funding notification from APS. Missing this or other project completion milestones may result in funding being cancelled for you project. Additional applicable forms referenced in the timeline are listed below.

Energy Savings and Designed Output Report (ES&D Report)

Acceptance and Installation Certification

Sample Credit Purchase Agreement

Submit all program documents to: commercial-renewables@aps.com

Forms & Resources
Contact APS Interconnect | Renewable Energy Home
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