An Arizona company specializing in residential solar installation claims a 500 percent increase in business for 2010, according to published reports.

Sky High Energy of Scottsdale attributed the gains to rising energy costs and an increased demand for residential solar installations. A large demand for solar panel installation has come from the Phoenix area.

"We've been inundated with calls daily as people are frantic to get their systems installed before the rebates get slashed further," said Preston Hansen, chief executive officer of Sky High Energy.

The company reported seeing record sales and installations for 2010, and noted some installation is taking up to a year because of the large amount of requests for installation. It anticipates seeing even more requests next year, given expectations that Arizona's electric utility, APS, will raise rates again.

Incentive rebates from APS dropped 50 percent from last year when they were $3.00 per watt. The decreases are due to large demand for solar installations.

"It's unbelievable that APS can operate at this breakneck speed," Hansen said.