The utility companies in Arizona are committed to renewable energy and offer financial incentives for the installation of solar systems. In addition, state and local incentives and rebates may apply.

Rebates/Incentives:
Currently there are 4 layers of incentives for residential systems in Arizona:
1. Utility rebate
2. Federal tax credit
3. State tax credit
4. State and county sales tax exemption

1. Each utility company offers a different rebate amount that is paid after the system is installed and commissioned (turned on). Fortunately, Sun Valley Solar Solutions (SVSS) covers the rebate amount upfront, so YOU NEVER HAVE TO PAY THE FULL SYSTEM COST. You are only responsible for paying up to the rebate amount. Utility rebate amounts can be found below.

2. The federal tax credit is $2,000. This can be carried forward up to 20 years,if your liability is low enough. For example, if you only owe $500 / year, you would owe the Federal government $0 for the next four years—until you’ve reached a total of $2,000 taken off what you owe in taxes.

3. The state tax credit is $1,000. This can be carried forward for up to 5 years if your liability is low enough. For example, if you only owe $500 / year, you would owe the state government $0 for the next two years—until you’ve reached a total of $1,000 taken off what you owe in taxes.

4. The state and county sales tax exemption saves over 4% off each system.

Of course, funding is limited and subject to availability. In many cases, it is recommended that you apply for the rebate right away, as soon as you have decided to install a solar system. This will reserve your place in the queue.

Arizona Public Service - EPS Credit Purchase Program

Applies To: Residential and commercial customers of Arizona Public Service Co.

System Type: All Systems (on- and off-grid)

Amount: $3.00 per Watt-DC for grid connected systems, $2.00 per Watt-DC for off-grid

Arizona Public Service Co. customers can receive a rebate of $3 for each watt of rated solar power (DC watts) installed in a grid-tied application and $2 for each watt installed in an off-grid application. You must be an existing customer or your property must be located in APS service territory. A licensed electrical contractor must install the system in order to qualify for the incentive. Customer receives payment directly from APS once the application has been processed and approved. Funding is limited and a reservation process is in place to guarantee funds for those customers pursuing projects.

Salt River Project - Solar Incentive Program

Applies To: Residential and commercial customers of the Salt River Project

System Type: All Systems (on-grid only)

Amount: $3.00 per Watt-DC up to a max of $30,000 per system

SVS customers can receive a rebate of $3 for each watt of rated solar power (DC watts) installed in a grid-tied application (up to a maximum of $30,000 per system). You must be an existing SRP customer. A licensed electrical contractor must install the system in order to qualify for the incentive. Customer receives payment directly from SRP once the application has been processed and approved. Funding is limited and a reservation process is in place to guarantee funds for those customers pursuing projects.

Tuscon Electric Power - SunShare Program

Applies To: Residential and commercial customers of Tucson Electric Power Co.

System Type: Grid-connected systems only - no battery back-up

Amount: $3.00 per Watt-DC up to 15 kW-AC for grid-tied only

TEP customers can receive a rebate of $3.00 for each watt of rated solar power (DC watts) installed in a grid-tied application for systems up to 10 kW-AC in size (15 kW-DC) and up to 100 kW-AC in size for commercial systems. You must be an existing TEP customer. Customer receives payment directly from TEP once the application has been processed and approved. Certain conditions apply and a reservation process is in place for Option 3.

UniSource Energy Services - SunShare Program

Applies To: Residential and commercial customers of UniSource Energy Services

System Type: Grid-connected systems only - no battery back-up

Amount: $3.0 per Watt-DC up to 10 kW-AC for grid-tied only

USES customers can receive a rebate of $2.70 for each watt of rated solar power (DC watts) installed in a grid-tied application for systems up to 10 kW-AC in size (15 kW-DC). You must be an existing USES customer. Customer receives payment directly from USES once the application has been processed and approved. Certain conditions apply and a reservation process is in place for Option 3.

AEPCO Co-ops (TRICO, SSVEC and more) - SunWatts Program

Applies To: Residential and commercial customers of Co-ops under the AEPCO partnership

System Type: All Systems (on- and off-grid)

Amount: $4.00 per Watt-DC grid-tied; up to 2 kW-DC for residential / up to 5 kW-DC for commercial

$4.00 per Watt-DC; up to 2 kW-DC for off-grid

Customers can receive a rebate of $4 for each watt of rated solar power (DC watts) installed in a grid-tied application or $4 for each watt installed in an off-grid application. You must be an existing customer or your property must be located in AEPCO member service territory. A licensed electrical contractor must install the system in order to qualify for the incentive. Customer receives payment directly from Co-op once the application has been processed and approved. Certain conditions apply.

US - Income Tax Credit

Applies To: Retail sale of solar-electric systems

System Type: Residential or Commercial on- and off-grid

Amount: 30% of system cost; $2,000 maximum for residential; one-time

The US Government has an income tax credit for residents and businesses that install a photovoltaic power system on their property. This credit applies to both on- and off-grid installations, and amounts to 30% of the system price, with a $2,000 cap on residential projects. This is a one-time tax credit and restricts the homeowner for additional credits for solar purchases made for the same residence in subsequent years.

State of Arizona - Personal Income Tax Credit

Applies To: Retail sale of solar-electric systems used in residential applications

System Type: Residential or Commercial on- and off-grid

Amount: 25% of system cost; $1,000 maximum for residential, $25,000 maximum for commercial;

Arizona has a personal income tax credit for residents that install a photovoltaic power system on their property. This credit applies to both on- and off-grid residences and businesses, and amounts to 25% of the system price or $1,000, whichever is less for residential systems, and 25% or $25,000 for businesses, whichever is less. This is a one-time tax credit and restricts the owner for additional credits for solar purchases made for the same property in subsequent years.

State of Arizona - Sales Tax Exemption

The expenditures on the construction of a solar electric power system is exempt from Arizona State & County Sales Tax. The remaining balance is taxed at the standard rate for contracting services. Note: Municipalities do not exempt solar electric power systems from sales tax.