Production Based Incentives for Non-residential Photovoltaic - Off-Grid

Production Based Incentives (PBIs), are available on a competitive basis for non-residential customers installing photovoltaic systems that are not tied to the APS grid. These incentives are paid quarterly based on the actual kWh production of the PV 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 electric generating systems up to 200 kWac or other non-electric generating renewable energy systems which are requesting up to $2.5 million in lifetime incentive payments, funding is 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 electric generating systems larger than 200 kWac or other non-electric generating renewable energy 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 29 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 - PV Off-Grid to make sure you will be able to provide all the necessary documentation at the time of 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 Equipment Qualification & Installation Guidance – Photovoltaic 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.

Steps in the incentive process:

1. Submit a completed and signed Reservation Application which includes:
   • A project description and itemized quote for all system and installation costs. The quote must include the manufacturer and model number of the solar panels and, if applicable, the inverter.
   • Your PBI Ranking score (from the APS ranking calculator).
   • A copy of the contract between you and your chosen Installer or Developer executed by both customer and Installer or Developer for the installation of the system (the contract can be contingent on receiving APS funding). Applications that are submitted without a signed installer contract will not be accepted.
   • System Annual Production calculation sheet, i.e. PVWatts or PVSYS.
   • If applicable, a Landlord-Tenant Rider and a copy of lease agreement.
     1. The lease agreement must specifically state that Customer will retain ownership of the Renewable Energy Credits (RECs).
     2. Exhibit A to the Credit Purchase Agreement (CPA) requires Customer to be the sole owner of the RECs.
         
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. Obtain AHJ approval.
   Typically your installer will assist you in obtaining permits for the construction of your system.
   
4. Complete and submit an interconnection application and sample diagrams within 120 days of receiving notification of your incentive reservation.
   • APS Interconnection requirements were revised July 1, 2011. All Interconnection Applications must be submitted with AHJ approved stamped diagrams. Your installer can provide the necessary technical information and typically submits this to APS directly. Please refer to aps.com/dg for detailed Interconnection requirements and examples.
   • Final approval will be provided only after an on-site interconnection inspection. You will also receive an Interconnection Agreement which you must sign and return to APS before the commissioning of your system.
      
5. Proceed with 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.
6. Contact APS to schedule an interconnection inspection.
   After your system has passed any inspections required by your local jurisdiction, please forward your proof of clearance to APS at the e-mail address below so that we may schedule a final inspection of the system’s interconnection to our network (if applicable). You will be sent written confirmation that your system has passed inspection and that we have activated your system.
   
   Activating your system prior to passing the APS inspection is extremely hazardous and is in violation of the terms and conditions of your interconnection agreement. Only an APS representative may activate your system.
    
7. Project Commissioning
   The project must be commissioned by 365 days of receiving notification of your incentive reservation.
    
8. Request your incentive payment.
   After your system has been activated, please send the following to APS so that your incentive payment may be processed:
   • An Installation & Commissioning Certification form signed by the equipment dealer, installer, and customer.
   • Final Invoice confirming the system purchase price, payment, and installation with by an Arizona licensed contractor.
     1. If PV, please include total panel count.
     2. Must be marked “Paid in Full”.
   • AHJ Approval (green tag)

Additional documents may be required if Incentive payment assignment has been noted within Installation & Commissioning Certification form. APS Incentive department will send additional documents as needed. Submit all program documents by e-mail to: commercial-incentives@aps.com

If you have any questions regarding the process, please e-mail commercial-incentives@aps.com.

Sample Credit Purchase Agreement

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