SRP, Tesla finalize agreement to resolve SolarCity lawsuit

Salt River Project and Tesla have finalized an agreement to resolve SolarCity’s 2015 lawsuit on the same terms announced earlier this month in a memorandum of understanding.

Terms of the agreement include:

  • SRP will purchase a 25-megawatt/100-megawatt hour battery energy storage system from Tesla, at market pricing, which will be installed at the Agua Fria Generating Station in Glendale.
  • SRP will initiate a three-year pilot program for solar and non-solar customers on the Customer Generation Price Plan that, in specified circumstances, will limit the effect of an unusual demand spike on billing. This temporary pilot will help inform potential future modification to the design of the price plan.
  • SRP will initiate a Customer Storage Incentive Program, which will provide incentives to SRP’s customers toward the purchase of qualifying home energy storage systems.

The litigation is being dismissed with prejudice, and SRP and Tesla remain committed to providing value for their respective customers and providing renewable energy in Arizona, a release announcing the agreement stated.

SRP’s Customer Storage Incentive Program will be available for up to 4,500 SRP customers on a first-come first-served basis during a 36-month period, beginning in May.

The program will provide an incentive of up to $1,800 ($150 per DC-kWh) for residential customers who purchase and install qualifying battery storage systems – including Tesla Powerwall battery products.

“This program will provide an excellent opportunity to conduct research that will help us learn more about how battery storage can enhance residential use of rooftop solar technology,” SRP General Manager and CEO Mark Bonsall stated in the release. “The relationship with Tesla gives SRP the ability to work with and learn from a company whose experience and advancements with battery storage is well known.”

Twenty Tesla Powerwall 2 home battery systems will be part of the research project, and SRP and Tesla will conduct two workshops to share lessons learned and results from SRP’s research, according to
the release.

The 25MW battery from Tesla will be installed and brought online between January 2021 and March 2021. According to Mr. Bonsall, the Agua Fria Generating Station in the West Valley provides an optimal location for a utility-scale battery storage system.

SRP is a community-owned, not-for-profit public power utility and the largest provider of electricity in the greater Phoenix metropolitan area, serving more than one million customers.

The Apache Junction Independent is mailed each month to 35,000 homes.

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