Arizona solar incentives for commercial energy systems
Beyond accelerated depreciation rules and a 30-percent renewable energy tax credit** available from the federal government, Arizona sponsors a number of its own solar incentives that can help reduce the cost of installing a commercial solar energy system. Read below for a general overview of Arizona's main solar energy programs.
When you're ready to move forward with your project, simply fill out our solar energy information form. It's free and requires just a few minutes to complete. After learning about your company's energy needs, we'll work with our solar installation partners serving Arizona to get you a free site visit and quote. We're here to get you quality service and a great price on your solar energy system. So what are you waiting for? Be the next business to get solar in Arizona!
**For solar commercial systems installed in 2009 and 2010, businesses may -- instead of taking the federal tax credit -- receive a solar energy grant equal to 30 percent of installed system costs. The grant option has been made possible by the federal stimulus package that was passed in February 2009.
Are you an Arizona homeowner? See our AZ residential solar incentive page.
10% Corporate Solar (and Wind) Tax Credit
Arizona businesses (and non-profits) can receive a 10 percent tax credit when they install solar photovoltaic (PV) panels or a solar thermal (solar hot water) system. A number of other technologies also qualify for the credit. The AZ solar tax credit is worth 10% of installed costs, up to $25,000 per building, not to exceed a total of $50,000 per year for an individual business. Unused credits may be carried over to the subsequent tax year, not to exceed five years. To be eligible for the credit, systems must be meet standards for performance and safety, as well as fulfill specific warranty requirements.
See the AZ Dept. of Commerce website for more information.
Arizona Public Service Co. (APS) Green Choice Solar Rebates
Through their Green Choice program, APS offers all of their residential and commercial customers a rebate for the purchase of a solar energy system. Here's an overview of what to expect:
Grid-tied non-residential PV systems can receive a rebate worth up to $2.50 per installed DC watt.
Off grid non-residential PV systems can receive a rebate worth up to $1.50 per installed DC watt.
Non-residential solar water heating systems can receive $0.75/kWh saved during the first year of system use.
Finally, for all APS customers, be sure to review their rules on net metering. In October 2008, APS adopted net-metering rules that apply to all investor-owned utilities and cooperatives in the state. The bottom line is that, if you install a grid-tied solar PV system, you'll want to sign up for their Optional EPR-5 Net Metering Rate (or the equivalent rate structure once the new rules come into effect). For details on APS net-metering rules, see their helpful FAQ section.
For more information, check out the APS website or contact them directly: Phone: (602) 328-1924; E-Mail: email@example.com
SRP: EarthWise solar energy for businesses
SRP offers its commercial customers a rebate for installing solar PV panels or a solar water heating system. Through April 30th, 2011, the rebate levels are as follows:
Solar PV: $2.00/watt for systems up to 30 kW in size with a maximum incentive of 60,000, larger systems have a production based incentive - $0.147/kWh for 20 years or $0.188/kWh for 10 years
Solar water heating: $0.50 per kWh saved in the first year, up to $100,000. If expected savings are greater than this, a performance based incentive plan goes into effect, earning $0.08 per kWh generated over 10 years.
See the SRP website for details on applying and recent updates.
Tucson Electric Power (TEP) SunShare program
TEP provides solar incentives to its customers that install solar PV panels or a solar water heating (solar thermal) system. Solar PV panels are eligible for either a rebate of $2.50/watt or a performance-based incentive that provides a set amount for each kWh produced by the system for systems as large as 100 kW. Larger systems are eligible for a performance based incentive. Incentive amounts vary depending on system size. Solar water heating systems are eligible for a production-based incentive.
For full details and recent updates on these commercial incentives, see TEP's website.
Trico Electric Coop SunWatts Program
Trico’s SunWatts Incentive Program has been put on hold due to budget concerns, but they are still taking rebate applications for 2010 projects. These projects will receive funding in order of application as it becomes available. Email them at firstname.lastname@example.org with application questions.
Solar water heat and solar PV systems for the residential and commercial sectors would be eligible to receive the following rebates: $3/watt DC of a small PV system less than 10 kW; up to $.202 per kWh produced for larger PV systems; Solar Water Heaters: $0.75 per expected first year kWh savings; maximum amount set at 50% of project costs. See the Trico website for more details.
UniSource Energy Services (UES) commercial solar programs
UES offers rebate and production-based incentive (PBI) options to its commercial customers who install solar panels or a solar water heating system. Grid-tied PV systems may be eligible for an upfront rebate of $2.50/watt, capped at 60% of system costs, or a PBI that provides compensation for each kWh of electric generation. Commercial solar water heating programs are eligible for a performance based incentive.
You read more (and apply) on the UES website.
Solar energy property tax exemption
Arizona permits a 100% property tax exemption for solar PV panels, solar thermal systems and and range of other solar energy technologies. Commercial (and residential and industrial) systems qualify. The exemption means that, for tax purposes, solar energy systems do not increase your business's property value.
[Last updated: 6/26/10]
Arizona: Commercial Solar Incentives