With escalating fuel costs and an increasing global demand to reduce the use of fossil fuels, our company believes it is more important than ever to invest in the development of renewable energy resources and advanced technologies. 

APS explored renewable energy long before the Arizona Corporation Commission’s Environmental Portfolio Standard was adopted in 2001. And, as a leader in the development of renewable energy resources in Arizona, we are committed to furthering technologies that serve our customers and support our environment today and in the years to come.

• As far back as 1954, APS was the principal organizer of the first International Solar Energy Exposition, held in Phoenix. In response to the 1973 oil embargo, APS and the nation embraced renewable energy research. APS helped organize the Arizona Solar Energy Research Committee (now the Solar Energy Advisory Council), and developed internal research programs.
• In 1988, APS built its Solar Test and Research (STAR) Center, which serves the research needs for both APS and solar equipment manufacturers. Scientists, engineers and students from around the world regularly use STAR to test the latest developments in solar technology. As a result of its work at STAR, APS has constructed solar power plants around Arizona, including one in Prescott that upon completion, is expected to be one of the largest photovoltaic plants in the world.
• APS also continues to explore the use of hydrogen as fuel in combustion engines. For example, APS’ hydrogen and compressed natural gas fueling station in downtown Phoenix offers hydrogen, compressed natural gas and a compressed natural gas-hydrogen blend. The Compressed Natural Gas/Hydrogen (CNG/H) fuel, used by employees and contracted companies, has shown improved vehicle performance with lower air emissions. The station received Valley Forward Association’s Crescordia Environmental Excellence Award in 2003.
• In 2004, APS was awarded an $800,000 cost-sharing grant from the Department of Energy. This grant will be used to model the interconnected workings of a conceptual hydrogen-based power park incorporating renewable energy, hydrogen-vehicle fueling, hydrogen-based heating and cooling and hydrogen based electrical generation.
• STAR hosts the world’s first utility demonstration of new photovoltaic cells – the same technology used for powering spacecraft and the Mars Rover. This new technology uses concentrated sunlight, making it almost 50 percent more efficient than conventional photovoltaic cells. This application is the first known utility-produced electric power from such space cells.
• The company is also involved in projects ranging from biomass to biogas to geothermal technologies to wind energy to developing blended fuels.

Solar tracking technology at STAR Center

APS Solar Partners Program
Under the Solar Partners Program, APS customers are invited to purchase 15 kilowatt-hour blocks of energy generated by the solar power plants. The cost to customers is a $2.64 per month premium. Solar Partners offers residential and business customers an affordable way to take advantage of the state’s most abundant source of renewable energy, the sun, while helping APS develop a secure energy source for our future. At year’s end, APS had more than 5,000 Solar Partners.

Solar Education
A major component of our renewable energy efforts is education and outreach. While it is a bit more expensive, APS has made a deliberate effort to build renewable energy facilities in multiple communities to educate Arizona on the viability of solar and renewables and to demonstrate the benefits to customers.

APS also participates in community events with informational displays and comprehensive information packets to educate the public and promote renewable energy. In addition to the educational opportunities found at the APS Solar Test Research Center, APS also offers Project SOL, a Web-based program designed to allow students to study the effects of weather and other factors on solar generation.

Students can access real-time information on APS’ solar plants across the state and compare the effects of elevation, temperature and the angle of the sun, which all affect the intensity of the sunlight that powers the solar cells.

The Project Sol Web page can be accessed at http://projectsol.aps.com/

APS EPS Credit Purchase Program
APS offers a credit purchase program to customers buying and installing solar systems. The program’s objective is to encourage residential and business customers to use solar energy. Under the program, APS pays customers who install solar systems for the renewable energy credits generated by these systems and helps offset the cost of installing solar on their home or business.

The company pays customers $4 per watt – up from $2 per watt in 2002 – for solar systems that are tied to APS’ electric grid, for up to 50 percent of the system’s cost. In addition, in 2003, APS paid customers $700 for installing solar water heating systems to purchase their EPS credits. The goal of this program is to increase demand for solar energy sources, thus leading to systems that become more affordable for everyday consumers.

Here is a summary of the current renewable projects in which the company is involved:

Generation Procurement

Since 2003, APS has formally included environmental factors when evaluating power purchase agreements or generation assets for procurement. Environmental factors considered include air emissions, water consumption and source, and compliance history.