A New Solar Opportunity -What is Community Power?
Arizona Public Service (APS) is the largest electric utility in Arizona, serving nearly a million customers. APS has launched a pilot project to install, own, operate, and maintain solar panels on customer rooftops at no upfront cost to qualified customers.
- Eligible customers must be served by a specific part of the APS distribution system.
- The customer's home must meet technical requirements such as roof direction, building age, and structural integrity.
- An on-site assessment of the home will verify engineering and eligibility requirements.
- Customers will sign an easement, allowing APS access for installation and maintenance.
- After installation is complete the customer will be eligible to receive a reduced rate for the power generated on their rooftop.
Community Power programs are based on the same concept as Energy Service Companies (ESCOs) where an independent company "rents" rooftop space on commercial buildings, installs a renewable energy system, and sells the power back to the building owner. ESCOs typically split their profits with the building owner through revenue sharing agreements. Due to the capital-intensive nature of renewable energy investments, this approach to energy service provisioning will play a larger role in our future.
Even as renewable energy costs decline, new systems still require a large upfront investment. Let's face it, most people don't have the needed $10, 000-$15, 000 to prepay their electric bill for 30 years. Credit markets remain tight and few loans are available. The homeowners who do have cash might not have the optimal south-facing pitch.
