Arizona Public Service Co. filed its plan last week to implement renewable energy production into its portfolio for next year and beyond in a move that will hike the amount of money it invests, but lower the individual incentives for solar. The plan, filed July 1 with the Arizona Corporation Commission, dedicates $96.4 million in 2011 to funding renewable energy through incentives for rooftop and commercial systems, as well as construction of its own power plants. Eran Mahrer, the utilityâ¿¿s director of renewable energy, said the plan would allow APS to exceed the stateâ¿¿s mandates for producing renewable power as a portion of its portfolio in a five-year time frame. The plan includes a number of ways of dealing with the onslaught of requests for incentives on rooftop solar systems, both at the residential and commercial level. APS has dropped its incentives twice in the past six months, and is overbooked for its program for this year. â¿¿The customers have become accustomed to the solar value proposition,â¿ Mahrer said. To deal with the residential side, the utility is proposing a series of decreases based on the amount of applications it receives. Under the plan, the current incentive of $1.95 per installed watt would drop to 90 cents over time. Those systems approved through APS now can get an incentive of nearly $10,000 on a 5-kilowatt system. At the end of the program, the same system would get about a $5,000 incentive. That funding stream would start in October, a period for which APS already has more than 7 megawatts of applications and $13 million in funding from requests already in the system, according to the APS website that tracks the stats. APS also is planning for a â¿¿rapid requestâ¿ program that would give customers an incentive of $1 per installed watt to allow people to avoid waiting for the higher rates and get the incentive nearly immediately.