SRP is announcing changes to its residential and commercial solar electric system incentives effective June 1, 2009, to allow us to accommodate more customers who may want to participate.

SRP is reducing the residential solar electric incentive from $3.00 per watt to $2.70 per watt, and is reducing the commercial solar electric incentive from $2.50 per watt to $2.25 per watt. The current residential and commercial solar water heating incentive level of $0.50 per kilowatt-hour will remain unchanged.

In addition, SRP is revising the cap on commercial solar water heating incentives to $250,000 per site, limiting the size of eligible residential solar electric systems to 5 kilowatts, and limiting the commercial solar electric incentive cap to $450,000 per site.

The incentives have been adjusted to accommodate the tremendous increase in requests for participation. We believe that increasingly generous federal tax credits, coupled with declining solar costs, will help offset the slight decrease in the SRP incentives. Ultimately, these changes will allow more customers to take advantage of the funding provided by SRP.

All applications postmarked on or after June 1, 2009, are subject to these new incentive levels and must use new incentive application forms, which will be available on SRP’s Web site soon.

Both the residential and commercial solar incentive programs are offered by SRP EarthWise™ Solar Energy. For more information, please refer to our Web site at www.srpnet.com/solar or contact us via e-mail at EarthWiseSolar@srpnet.com.