Solar Incentives

 

Arizona's utility companies offer financial incentives for the installation of residential solar electric systems. In addition, tax credits and sales tax exemptions may be obtained.

Currently, there are four levels of incentives for residential systems in Arizona: utility rebates, federal tax credits, state tax credits, and state and county sales tax exemptions.

Utility Rebate - Each utility company offers a different rebate amount that is paid after the system is installed and turned on. Sun Valley Solar Solutions covers the rebate amount up front, so you never have to pay the full system cost.

Federal Tax Credit - This is now up to 30 percent of the system cost.

State Tax Credit - The state tax credit is $1,000. This can be carried forward for up to 5 years if your tax liability is low enough. For example, if you owe $500 in state tax, you would pay the State of Arizona $0 for the next 2 years - until you have reached a total of $1,000 in credits.

State and Local Sales Tax Exemptions - These exemptions save over 4 percent off the cost of each system.

Funding for rebates is limited and subject to availability. It's recommended that you apply for the rebate as soon as you have decided to install a solar system.

Arizona Public Service rebate - EPS Credit Purchase Program

Applies to Residential and Commercial Customers of Arizona Public Service Co.

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

Amount: $1.95 per Watt-DC for grid-connected systems; up to $2.00 per Watt-DC for off-grid

Arizona Public Service Co. customers can receive a rebate of $1.95 for each watt of rated solar power (DC watts) installed in a grid-tied application, and up to $2.00 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 for those customers pursuing projects.

Salt River Project - Solar Incentive Program

Applies to residential and commercial customers of the Salt River Project

System type: On-grid systems only

Amount: $2.15 per Watt-DC up to 5 kW system

SRP customers can receive a rebate of $2.15 for each watt of rated solar power (DC watts) installed in a grid-tied application. 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 approved. Funding is limited, and a reservation process is in place to guarantee funds for those customers pursuing projects.