Up Front Incentives for Small Solar Water Heating Systems (OG-300 Rated)

Up-Front Incentives (UFIs), for the installation of domestic solar water heating systems for non-residential customers are available on a competitive basis up to a maximum incentive equal to $0.68 times the system’s "OG-300" performance rating as published by the Solar Rating and Certification Corporation (SRCC). The OG-300 rating is an industry standard that provides an estimate of the kWh savings your system will provide in its first year of operation. UFIs are limited to $75,000 and cannot cover more than 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 solar water heating 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 is 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 during that period 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 forinformation 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 funding being cancelled for you project.

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 OG-300 rated system.
   • 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 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 any local permits and proceed with installation of your system.
   After installation, obtain necessary municipal clearances ("green tag"). Typically your installer will assist you in obtaining permits and clearance.
    
4. 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 the paid invoice(s) confirming the system purchase price, payment and installation by an Arizona licensed contractor.

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

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

Forms & Resources
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