Dive Brief:

• The Arizona Corporation Commission has approved a solar program for Tuscon Electric Power which will be made available to up to 600 customers next year.
• After paying a $250 administrative fee, TEP solar participants will pay a fixed monthly electric rate that roughly matches their current average bills,
• TEP will partner with local solar companies to install and maintain the systems, but the utility will own and operate the systems, adding them to the company's renewable resources.

Dive Insight:

The Arizona Corporation Commission has signed off on an innovative program proposed by Tucson Electric Power, which allows 500 to 600 customers to use solar power with no installation or maintenance costs. After paying a $250 administrative fee, participants will pay a fixed monthly electric rate that roughly matches their current average bills, "generating significant savings if TEP's rates or energy costs increase in the future," the utility said.

The approval marks a reversal of recent ACC actions on rooftop solar. In November, the regulatory staff recommended rejection of a similar bid to own rooftop solar proposed by Arizona Public Service.

"This innovative program will expand the availability of solar power across our community at a stable, affordable price without compromising the reliability of our electric system," said Philip Dion, TEP's senior vice president of public policy and customer solutions.

The program will be made available next spring. TEP said it will seek participants in areas where the utility's solar arrays would maximize benefits for the local electric grid that serves all customers. System size requirements, proximity to the grid and opportunities to integrate advanced inverter technologies will be considered. TEP will also look for sites where solar panels can be positioned to maximize output that more closely coincides with peak demand.

By the end of this year TEP said it expects to have more than 340 MW of total renewable generating capacity, enough to meet the electric needs of more than 71,000 homes.