Strong Arizona Solar Rebate For APS Customers

The Grand Canyon State is on the ever-growing list of states offering rebates to businesses and homeowners who invest in renewable energy systems. A state tax credit ($1,000 max) is available to all residents, and utilities within the state offer solar energy rebates to their customers. Phoenix-area residents served by SRP should check out our recent update on that incentive, but APS customers, read on below.

Through the Renewable Energy Incentive Program, Arizona Public Service (APS) offers a rebate of up to 50 percent on the cost of a solar installation (PV or hot water). Why so generous? APS is working towards the state-mandated renewable portfolio standard goal of 15 percent renewable energy by 2025. As for the nearer future, APS has set a 2.5 percent goal for 2010.

In order to reach these goals, APS has been authorized to offer $62,700,000 in renewable energy incentives in 2010, with more to be distributed for production-based incentive past the one year deadline.

The rebate can save APS customers up to 50 percent of solar installation cost.

Rebate levels vary depending not only on project type, but on estimated performance. For instance, a normal grid-tied residential solar installation qualifies for $3/watt (30-40 percent of costs, depending on your quote), while off-grid non-residential systems receive a lower rebate of $1.50/watt. DSIRE breaks it all down for you here.

APS has allotted generous funding for each sector:

Residential: $44.1 million in up-front incentives
Non-Residential Large Projects: $65 million of lifetime commitment in production-based incentives
Non-Residential Medium Projects: $20 million of lifetime commitment in production-based incentives
Non-Residential Small Projects: $2 million in up-front incentives
School/Governmental: $15 million of lifetime commitment in production-based incentives

APS has not listed any restrictions for grid-tied systems, but has said that off-grid systems must be less than 5 kW. Additionally, PV and solar hot water heating systems must be installed by a licensed contractor who holds specific certification with the Arizona Registrar of Contractors. And because incentives do depend on system performance, working with an experienced solar installer is your best bet to optimizing system performance–and thus, your APS solar rebate.

Adam Sewall Said,

May 26th, 2010 @6:19 pm

You’re right, Jim, that the APS rebate has been reduced recently — to $1.95/watt. The cut off date for $3/watt reservation was April 2, 2010, which came about just after the date when this post was published.

Readers can see the Arizona Solar Energy Association’s spring newsletter for more details:

“Cut-off Date for $3.00/Watt Applications – An amendment was made that set the cut-off April 2nd 2010 as the cut-off date for reservation applications at the $3.00/watt incentive level. This means that about 4 million dollars of the incentive funds were consumed over the three days of 3/31 to 4/2, which effectively depletes the fund until July 1st.”

http://www.arizonasolarenergy.org/newsletter.html