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Shining light on the solar boom in Maricopa
By Raquel Hendrickson
July 1, 2015 - 5:01 pm
Solar installation permits in Maricopa exploded by 273 percent in the first four months of the year compared to the same time frame in 2014.

The reasons for the growth are myriad, but there are nearly as many reasons residents have shied away from utilizing the sun. So the pace of the new installations is as much a tribute to the selling power of solar consultants as it is a push-back against utility companies.

Interim Development Services Director Dana Burkhardt said electricity costs and recent rebate programs played a factor.

“ED3 has the highest electricity rates in the state,” said Advanced Energy Systems (AES) consultant Paul Melnik.

That drives people to solar, but Melnik said utility companies like Arizona Public Service and Salt River Project have been “propagandizing” solar power and scaring people away with solar surcharges.

Kelly Roberts and Ted Anderson at their Homestead house with solar panels from SolarCity. Consultant Drew Marusharow is among those credited with a boom in solar installations in Maricopa this year.

“Sales for the whole East Valley shrank,” he said.

A solar tax by SRP “that doubled the amount of the minimum charge” and a continuing impression that solar is too expensive to install blunted the influence solar energy might have had in Arizona’s metro areas, Melnik said.

The issues in the East Valley sent solar companies to other communities to educate residents in places like Maricopa that bask in the sun most of the year.

From January through April 2014, Maricopa saw 73 solar permits. During the same period this year, the number was 272. There were 100 permits in March alone.

“It’s a movement; it’s not just buying energy,” said Drew Manusharow, senior energy consultant with SolarCity. “I love what I do,” Manusaharow says. “We’re doing something amazing.”

Solar customers are taking advantage of an Energy Star solar tax credit while they can. The credit is 30 percent of the cost, up to $500 per 0.5 KW of power capacity. Federal and state credits could pay for $7,000 of a $20,000 system, Melnik says. But the credit goes away Dec. 31, 2016.

An even earlier development may also change the solar trend in Maricopa. ED3 announced it was altering its solar policy beginning July 1. Its fixed cost recover charge will rise from 70 cents to $3 per month for all new solar customers. ED3 General Manager Bill Stacy said it would apply only to future customers.

A customer who applies for “distributed generation” by July 1 must be interconnected by Oct. 1, according to ED3, or will be subject to the new charges.

ED3 will also limit the number of new solar installations to 30 per month. Those kinds of decisions from utilities are frustrating for solar consultants, who have to explain the policies to potential customers already cautious about the switch.

“Arizona should be among the leaders in the world for solar, as we are in the top three locations in the world for solar production,” Melnik said.

Maricopa has been a transient community, with people moving an average of every two years, whether to a new city or just across town, HomeSmart Success Real Estate owner Ted Anderson said. Making a long-term investment in a solar energy system for a temporary situation has not seemed logical. Even if residents decided on solar they did not even know the questions to ask.

“Nobody had a really good understanding of it,” Anderson said. “They are more likely to buy a house with panels once they understand it.”

Anderson and his fiancée Kelly Roberts bought their Maricopa home almost two years ago in Homestead. Anderson said they decided on solar to save on electricity and also to reduce their carbon footprint.

“Eventually you start going through life and paying attention to where the money is going and the impact of what you are participating in,” Anderson said.

They were studious about choosing a company and a plan.

They hired SolarCity for the installation. Once complete, Roberts said they saw an instant change. She said their combined bill for the system and for ED3 service went from $270 to $190. By itself, the electricity cost was around $32.

That kind of word of mouth amid frustration with bills and distrust of the Arizona Corporation Commission helped reputable solar companies get a stronger foothold in Maricopa. Once ED3 allowed leasing programs for solar installations, new avenues opened up.

“That has taken off like crazy,” Manusharow said.

Leases work for some but not for others. SolarCity leases systems, including lease transfers, but AES does not. Manusharow said it is important for potential solar customers to do their research and sit down face to face with consultants who know the process, especially with changing utility policies.

“There are also lease transfers to new owners, or the owner can take it with them,” Manusharow said.

Stiff competition among solar companies that shifted their focus to Maricopa has also separated the wheat from chaff. Word of mouth has worked both ways among residents and real estate brokers.

Companies have also had to adapt to a changing industry, changing rules and changing perceptions. The perception in Maricopa has taken a positive swing.

“Being on a budget and knowing how much you’re going to pay is amazing,” Manusharow said.

“What’s cool about solar is that it’s cheaper in the long run – you can overproduce in the mild months and you get to use that during the summer. It levels off the big spikes in energy use you usually see,” Melnik said.

That, too, is getting an overhaul at ED3, which is drawing up a new rider explaining its buyback option. In a letter sent to customers June 3, the company said “net excess generation will no longer be carried forward.”
Educating residents on how solar systems work, what kind of service to expect from a quality company, and available financing and rebates helped boost solar companies’ Maricopa sales in dramatic fashion. So has a conviction that investing in solar now could pay off in the real estate market of tomorrow.

And there is always the energy savings.

“People are getting more educated that we live in the desert,” Melnik said. “When enough people notice that their neighbors have solar, they ask them about it. And they’ll show them a $35 bill.”