Arizona solar incentives for home energy systems
Beyond 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. AZ lawmakers have in recent years been actively pursuing legislation to promote the adoption of solar power.
Across the state, a number of different utility-sponsored programs offer rebate programs for residents and businesses interested in purchasing solar energy systems. In general, the programs take the form of a per watt rebate for PV systems. A solar hot water system, in contrast, usually receives a payment for each kWh it's expected to save over the course of its first year of service. While the programs’ application and technical requirements vary a bit, ballpark figures are in the range of $2-3/Watt of DC power (PV) and $0.50 to $0.75 for each kilowatt-hour saved by a SWH system.
To get started on your project, simply fill out our solar energy information form. It's free and takes just a few minutes to complete. After learning about your household energy needs, we'll work with solar installation pros 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.
Are you and Arizona business owner? See our AZ solar commercial incentive page.
Arizona Public Service (APS)
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 residential PV systems can receive a rebate worth up to $1.95 per installed DC watt. Off grid residential PV systems can receive a rebate worth up to $2.50 per installed DC watt. A residential solar water heat (SWH) system may get $0.50 for every kWh it's expected to save over the course of its first year in use, an incentive that is capped at 50% of total installed costs.
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. These new rules will be coming into effect in 2009. 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: renewables@aps.com
SRP EarthWise Solar Energy:
Residential (and commercial) PV and solar thermal systems in SRP service territory are eligible to receive rebates through the SRP EarthWise Solar Energy program. Through April 30, 2011, the rebate level for residential PV system is $2.15/watt of DC Power installed with a maximum rebate of $10,750. Residential solar water heat (SWH) systems may get $0.50 for every kWh it’s expected to save over the course of its first year.
Sulphur Springs Valley EC: SunWatts Incentive Program:
PV systems for residential and (commercial) sectors in Sulphur Springs may be eligible to receive rebates through the SunWatts program. PV systems costing less than $75K and/or producing up to 10kW may opt for either an upfront rebate of $3.00/ DC watt installed or a production based incentive of $0.108-$0.202 per kWh produced. (The exact rebate per kWh depends on the length of the agreement and whether the system is connected to the grid.) The upfront rebate option is not available to systems larger than 10 kW and/or costing greater than $75K, which may only opt for the production incentive.
A residential solar water heat (SWH) system may get $0.50 for every kWh it's expected to save over the course of its first year in use, an incentive that is capped at 50% of total installed costs.
Trico Electric Cooperative: SunWatts Incentive 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 sunwatts@trico.coop with application questions.
Solar water heat and solar PV systems for the residential and commercial sectors may be eligible to receive 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 Cooperative website for more details.
Tuscon Electric Power: SunShare Program
The SunShare Program for customers in Tuscon Electric Power’s service area offers $2.25/watt of grid-tied DC power installed and $2.00/watt of off-grid DC power installed. For residential solar water heaters, $0.25/kWh saved plus a $750 up front rebate.
Unisource Energy Services (UES): SunShare PV Buydown:
Grid-tied residential and commercial PV systems may receive rebates through the UES SunShare program. Residential PV systems can receive $3.00 per grid-tied DC watt installed and $2.00 per off grid watt installed. According to the rules, rebates may cover no more than 60% of total installed costs.
Arizona Tax Incentives for Solar Power:
For more information on any of the specific tax programs outline below, please visit the Arizona Solar Center website, a great public resource for all your questions regarding solar energy in Arizona.
25% Residential Solar (and Wind) Energy Systems Tax Credit: Residential solar PV and solar thermal systems are eligible for a 25% state tax credit, worth up to $1,000 per residence. 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. For more info on the tax credit, see the Arizona Dept. of Commerce.
Solar Energy Property Tax Exemption: Arizona permits a 100% exemption for solar PV and solar thermal systems. Put simply, solar-energy home improvements do not increase homeowner’s tax liability.
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[Last updated: 8/2/10] Arizona Residential Solar Incentives |
