Arizona’s renewable energy standard has been instrumental in scaling investments and driving down the cost of renewable energy across the state to the benefit of Arizona’s utilities and ratepayers. The Arizona Renewable Energy Standard and Tariff: 2020 Progress Report, calculates the economic benefits of Arizona’s 2006 Renewable Energy Standard and Tariff (REST), which requires 15% of Arizona’s energy come from renewable energy resources by 2025.
Since 2006, REST has delivered significant benefits to Arizona utilities, companies and residents in the form of avoided energy and generation costs, water savings, pollution reduction, technology cost reductions and new jobs. Analysis shows that REST has led to more than $1.5 billion and $469 million in gross benefits for the public and customers of Arizona Public Service (APS) and Tucson Electric Power (TEP), respectively. Combined, APS and TEP provide nearly half of the state’s retail electricity sales.
Other benefits from the program to date include:
$11.62 billion in solar-industry investments, which has stimulated job growth and market development;
A 3% reduction in statewide greenhouse gas emissions, leading to improvement in air quality and public health; and
Savings of 7,129-acre feet of water annually, enough water to serve the needs of nearly 44,000 Arizonans each year.
Expanding REST to require 45% renewable energy in Arizona by 2030 would help the state build on this success by generating an additional billion dollars in net benefits over the next 10 years.