Up-Front Incentives for Geothermal Energy – Space Heating and Process Heating

New geothermal process heating/cooling & space heating systems installed within the APS service territory can compete for a one-time incentive from APS of up to $0.90 per estimated kWh saved during the first year of operation, up to a maximum incentive of $75,000. Systems requesting greater than $75,000 may apply for an incentive under our production based incentive program. Total up-front incentive payments are also limited to 50 percent of the cost of your system.

Funding for up-front incentives is awarded on a competitive basis every other month. At the end of each bi-monthly period, renewable energy projects are compared to each other based on the “ranking score” each project receives from the APS UFI Ranking Calculator.

The score given to a geothermal electric generation project is largely based on the amount of incentive that is requested for each kWh your system is estimated to displace during its first year of operation. The maximum incentives per kWh available under the program vary by technology and are listed on the APS Incentive Chart. When applying for an incentive, you may request the maximum incentive per kWh available, however, projects requesting less incentive per kWh will generally receive a more competitive score. Available funding for up-front incentives will be equally divided into the six bi-monthly allocation periods as noted below. Applications are due the last day of the respective period.

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

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” change 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).

Before you apply:

• 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 a working model of the UFI Ranking Calculator (MS Excel) so that you have an understanding of how your project will be scored.
   
• 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 an up-front incentive must be installed within 180 days of receiving funding notification from APS. Missing this or other project completion milestones may result in cancellation of your incentive funding.

Steps in the incentive process:

1. Submit a completed and signed Reservation Application - Geothermal which includes:

   • A project description and an itemized quote for all system and installation costs. The quote must include the manufacturer and model number of the system equipment.
   • Your UFI Ranking score from the APS ranking calculator.
   • A copy of the signed installation contract between you and your chosen installer (the contract can be contingent on receiving APS funding). Applications that are submitted without a signed installer contract will not be accepted.
       
2. Approximately two weeks after the nomination period has ended, the cutoff score for that period will be posted on aps.com/GoSolar and projects receiving a funding reservation will be notified. If accepted, APS will send you a Credit Purchase Agreement (CPA) which you must review, sign and return within 45 days. The CPA is the document that spells out the obligations between you and APS regarding the renewable energy credits (RECs) associated with the production from your system and must be signed in order to participate in the program.
    
3. Submit a completed ES&D report, stamped by a professional engineer, showing the estimated kWh savings your system will provide. Once approved by APS, the ES&D report will be used to calculate the actual incentive for which you qualify.
    
4. Obtain any local permits and proceed with the installation of your system.
   Typically your installer will assist you in obtaining permits for the construction of your system. After installation, your local jurisdiction will inspect your system and provide any municipal clearances (also called "green tags") which must be submitted to APS.
    
5. Request your incentive payment from APS.
   Your request for payment should include:

   • Proof of final clearance from your local jurisdiction.
   • An installation certification form signed by both your equipment dealer and installer
   • A copy of paid invoice(s) confirming the system purchase price, payment, and installation by an Arizona licensed contractor

Submit all program documents by e-mail: commercial-renewables@aps.com

If you have any questions regarding the process, please call (602) 328-1924.

Forms & Resources
Contact APS Interconnect | Renewable Energy Home
Learn more about all APS Green Choice programs