SRP caps solar system size, limits renewables budget

The Salt River Project decided yesterday to cap the size of residential rooftop systems eligible for its rebate to 5 kws, limit the amount allowed for any commercial solar rebate and cap the per watt solar rooftop incentive to $2.70 per watt. http://www.azcentral.com/business/articles/2009/04/21/20090421biz-solarcuts0422.html. While I have never been an advocate of keeping the per watt incentive high forever, I think what SRP has done is premature, and demonstrates an unfortunate lack of seriousness when it comes to rooftop solar in Arizona and renewables in general. In every category of renewable energy, the Project is vastly underspending the state's other utilities, which are regulated by the Corporation Commission and must comply with the Commission's Renewable Energy Standard. The problem here is that SRP isn't just a little irrigation ditch company anymore -- it's one of the largest utilities in the state, and by ratcheting back its solar program, SRP is sending the wrong signal to the rest of the country at precisely the time Arizona is trying to brand itself as the solar energy capitol of the country. It also creates a disparity between utility customers in Phoenix: if you happen to live in Arizona Public Service's territory, you will receive a growing number of solar options, and if you take electricity from SRP, a lesser amount of renewable energy. Over time, as Congress considers and probably passes a cap and trade program, this will also mean that SRP customers, who will be more exposed to coal-fired electricity, will pay higher prices. SRP should rethink this decision, or find some other way to show it's committed to building a solar energy future for Arizona.