Solar Incentives

 

Many of 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 can cover 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.

Local Sales Tax Exemptions - These exemptions save over 8 percent off the cost of each system.

Funding for utility 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

Amount: Funds exhausted for this year.

At this time all funds have been suspended through year-end. Check back soon for information on the 2012 incentive levels. For the most current information on incentive levels, go to www.aps.com/GoSolar. A licensed electrical contractor must install the system in order to qualify for the incentive.

Salt River Project - Solar Incentive Program

Amount: $1.20 per Watt-DC up to 5 kW system

SRP has set aside funding for a total of 4.5 megawatts (MW) of residential solar electric installations through April 30, 2012. The incentive level is offered at $1.20 per watt for 1.5 MW of installations, ending at $1 per watt for the remaining 1 MW of installations. A licensed electrical contractor must install the system in order to qualify for the incentive.

Tucson Electric Power -- Up-Front Solar Incentive

The incentive fund for 2011 has been depleted. Applications for grid-tied PV systems with the up-front solar incentive can be placed on a waiting list for 2012 funds at a yet-to-be determined rate for 2012.

Customers' projects receiving the up-front incentive can receive no more than 50 percent of the system cost in the total incentive payout. System must be installed at a TEP service address.