An analysis of Utility Incentives for Residential Photovoltaic Installations in Phoenix, Arizona

Arizona regulators have implemented net metering and renewable energy production rules that prescribe distributed generation via photovoltaics. Analyses demonstrate that the wise homeowner seeks only to avoid electricity charges rather than achieving net generation with a grid-tied system. Whereas maximum energy production occurs for panels oriented directly south at a fixed angle near latitude, maximum economic return depends on the electricity rate structure which may include different charges due to seasonal and time-of-use (TOU) energy demand. For Phoenix, TOU plans typically favor optimal panel placement toward the southwest. With utility rebates and government tax credits, smaller systems achieve breakeven faster.