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| Rebate Type |
Amount |
| Solar Power Installation Rebate |
$2,000 to $3,000 per kW installed, varies by installation type, up to 50% of cost. |
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Arizona Residential Solar and Wind Energy Systems Tax Credit
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25% of cost or up to $1,000 maximum credit per residence |
| Arizona Solar Energy Property Tax Exemption |
100% of increased or system valu |
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Arizona Public Service (APS) Renewable Incentive Program
| Incentive Type: |
Arizona Utility Solar Power Rebate Program |
| Eligible Renewable/Other Technologies: |
Solar Water Heat, Solar Space Heat, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Geothermal Heat Pumps, Solar HVAC, Solar Pool Heating, Daylighting, Anaerobic Digestion, Small Hydroelectric, Other Distributed Generation Technologies |
| Applicable Sectors: |
Commercial, Residential |
| Incentive Amount: |
PV incentives may be de-rated based on expected performance
Grid-tied residential PV: $3/watt DC
Off-grid Residential (less than 5 kW): $2/watt DC;
Grid-tied non-residential PV: $2.50/watt DC or production-based incentive (PBI)
Off-grid non-residential PV: $1.50/W DC or PBI
Residential/small solar water heating: $0.75/kWh of estimated first-year savings
Commercial/large solar water heating and solar HVAC systems: production based incentive
Solar Daylighting: $0.20/kWh estimated first year savings
Other renewables: performance-based incentive |
| Maximum Incentive: |
PV: 50% of project costs. Up-front incentive payment is limited to $75,000
SWH: 50% of system costs |
| Eligible System Size: |
No size restrictions for grid-connected systems specified; Less than 5 kW for off-grid systems.
Under the small SWH system incentive, systems must have OG-300 ratings of 10,000 kWh per year energy savings. "Large" SWH systems have minimum 5,000 kWh/yr. estimated energy savings |
| Installation Requirements: |
PV systems must be installed by a licensed contractor holding one or more of the following certifications with the Arizona Registrar of Contractors: C-11, K-11, L-11.
SWH systems must be installed by a licensed contractor holding one or more of the following certifications with the Arizona Registrar of Contractors, C-37, C-37R, K-77, K-78, L-77, L-78. |
| Ownership of Renewable Energy Credits: |
Arizona Public Service |
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Through the Renewable Incentive Program, Arizona Public Service (APS) offers customers who install various renewable energy sources the opportunity to sell the credits associated with the energy generated to APS.
Arizona Residential Solar and Wind Energy Systems Tax Credit
| Inncentive Type: |
Personal Tax Credit |
| Eligible Renewable/Other Technologies: |
Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Solar Ovens, Solar Cooling, Solar Pool Heating, Daylighting |
| Applicable Sectors: |
Residential |
| Amount: |
25% |
| Maximum Incentive: |
$1,000 maximum credit per residence, regardless of number of energy devices installed |
| Carryover Provisions: |
Excess credit may be carried over 5 years. |
| Eligible System Size: |
Not specified |
| Equipment/Installation Requirements: |
System must be new and in compliance with all applicable performance and safety standards; must carry a minimum 2-yr warranty on collectors, heat exchangers, and storage units; other equipment and installation must carry a minimum 1-yr warranty. |
Summary:
Arizona's Solar Energy Credit provides an individual taxpayer with a credit for installing a solar or wind energy device at the taxpayer's Arizona residence. The credit is allowed against the taxpayer's personal income tax in the amount of 25% of the cost of a solar or wind energy device, with a $1,000 maximum allowable limit, regardless of the number of energy devices installed. The credit should be claimed in the year of installation and if the amount of the credit exceeds a taxpayer’s liability in a certain year, the unused portion of the credit may be carried forward for up to five years.
Qualifying technologies include solar domestic water heating systems, solar swimming pool and spa heating systems, solar photovoltaic systems, solar photovoltaic phones and street lights, passive solar building systems (trombe walls, thermal mass, etc.), solar daylighting systems (excluding conventional skylights), wind generators, and wind powered pumps.
Arizona Solar Energy Property Tax Exemption
| Incentive Type: |
Property Tax Exemption |
| Eligible Renewable/Other Technologies: |
Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Solar Cooling, Solar Pool Heating, Daylighting |
| Applicable Sectors: |
Commercial, Industrial, Residential |
| Amount: |
100% of increased value |
| Date Enacted: |
6/21/2006 |
| Expiration Date: |
None |
TEP - Renewable Energy Credit Purchase Program Tucson Electric Power (TEP) created the SunShare Program in 2001 to encourage residential and business customers to install new photovoltaic (PV) equipment. TEP transitioned away from their original incentive structure for PV and added incentives for a variety of other technologies in May 2008. The technologies now eligible for funding through the SunShare program all qualify under Arizona's renewable energy standard (RES). TEP offers these incentives in exchange for the renewable energy certificates they generate.
Sulphur Springs Valley EC - SunWatts Rebate Program
Through the SunWatts Program, Sulphur Springs Valley Electric Cooperative (SSVEC) offers home and business owners a rebate of $4/W DC for installing photovoltaic, wind and biomass systems, with a maximum rebate of 50% total unit cost. Systems must be grid-connected to be eligible for the rebate. Note that customers receive no credit or payment for excess generation that flows back to the grid.
SRP - EarthWise Solar Energy
SRP's EarthWise Solar Energy Program provides incentives to residential and commercial customers who purchase photovoltaic (PV) or solar water-heating systems. For residential and commercial PV systems up to 20 kilowatts (kW) in capacity, the incentive is $3/watt DC, with a maximum payment of $60,000 per system. For commercial PV systems over 20 kW in capacity, the incentive is $2.50/watt DC, adjusted based on the expected energy generation and verified during a 30-day performance test. There is no stated maximum incentive for commercial systems, but installations which expect to receive incentives totaling $580,000 or more require pre-approval from SRP. A more detailed application process is required for systems over 20 kW in capacity. (Click here for more information on incentives for commercial applications.) PV systems that use battery back-up are eligible for the program.
For residential and commercial solar water-heating systems, SRP offers an incentive of $0.50/kilowatt-hour (kWh) of first-year energy production. Incentive payments for residential systems will be made based on the system's SRCC OG-300 rating. For commercial solar water heating systems the incentive payment is based on actual energy production, and are awarded one year after the system is installed. However, incentives can be reserved before the system is installed. After the incentive is reserved, SRP will require an Energy Savings and Designed Output (ES&D) report. The contractor will be cleared by SRP to make the installation if the ES&D report is favorable. After the system has been in operation for a full year, SRP will read the system's meter and issue a rebate check based on the system's actual performance at $0.50/kWh.
Residential solar pool heating systems are not eligible for incentives. Commercial solar pool heating systems are eligible for an incentive of $0.50/kWh of first-year energy production, not to exceed 60% of the system's cost.
In exchange for incentive payments, customers must allow SRP to retain the renewable-energy credits (RECs) associated with the electricity produced. Systems must be installed by a licensed contractor. SRP will provide and install a required separate meter, but the utility does not install systems or promote individual contractors.
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