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Arizona Solar Energy Incentives
Solar Photovoltaic (PV) panel & Solar Thermal systems Rebates & Credits:
Solar (PV) systems:
UES - Renewable Energy Credit Purchase Program
(Commercial, Residential)
Rebate 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 solar water/space heating: $750.00 plus $0.25/kWh up to a maximum of $1,750.00
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
Rebate Maximum: Up-front incentives can pay for no more than 60% of the cost
SRP - EarthWise Solar Energy Incentive Program
(Commercial, Residential)
Rebate Amount: Incentive Levels through April 30, 2010:
Residential PV systems: $2.70/watt DC;
Commercial PV systems (up to 50 kW): $2.25/watt DC
Commercial PV systems (over 50 kW and up to 300 kW): Production-Based Incentive - $0.160/kWh for 20 years or $0.214/kWh for 10 years
Residential Solar water heaters: $0.50/kWh for 1-year estimated energy production (based on SRCC OG-300 rating)
Commercial Solar water heaters (up to 200,000 kWh annual energy savings): $0.50/kWh for 1-year actual energy production
Commercial Solar water heaters (with more than 200,000 kWh annual energy savings): $0.08/kWh for first 10 years
Solar pool heating (commercial only): $0.25/kWh for first year metered energy savings
Rebate Maximum: Maximum Incentive Levels through April 30, 2010:
Residential PV: $13,500
Commercial solar water heaters: $250,000 per project not to exceed 60% of the total project cost
Sulphur Springs Valley EC - SunWatts Rebate Program
(Commercial, Industrial, Residential, Construction, Agricultural)
Rebate Amount: PV systems up to 10 kW and/or that cost less than $75K: customer may choose a capacity-based upfront rebate or a production-based incentive.
PV systems over 10 kW or that cost more than $75,000, and all wind and biomass systems: customer may only take the production-based incentive
Upfront rebate (PV only): $3.00/W DC (residential), $2.50/W (commercial and industrial)
Production-based incentive: $0.108 per kWh to $0.202 per kWh, depending on the length of the agreement, and whether the system is grid-connected
Solar water heaters: $0.75 per first year expected kWh savings
Homebuilder incentive: $1,500 for 2kW systems or larger installed on new homes
Rebate Maximum: 50% of project costs
TEP - Renewable Energy Credit Purchase Program
(Commercial, Residential)
Rebate Amount: Up-front incentives for PV may be de-rated based on expected performance
Residential PV: $3.00/W-DC or performance-based incentive for on-grid systems, $2.00/W-DC for off-grid systems;
Non-Residential PV: $2.50/W-DC or performance based incentive for on-grid systems, $0.121/kWh of estimated annual production for off-grid systems;
Wind: $2.50/W-AC for on-grid systems, $2.00/W-AC for off-grid systems; or a performance-based incentive
Daylighting (non-residential only): $0.20 per kWh savings for 5 years; Residential Solar Water Heater: $0.25/kWh-equivalent, plus $750 up to a maximum amount of $1,750, or performance-based incentive;
Non-Residential Solar Water Heater: performance base incentive;
All other eligible technologies can receive performance based incentives which vary depending on the technology and the length of the contract. Contract options for performance-based incentives are 10, 15 and 20 years.
Rebate Maximum: Residential PV systems greater than 20 kW AC will receive rebates on the first 20 kW AC only, TEP incentive for PV can not exceed 60% of the total project cost.
TEP incentive for PV may be combined with other state and federal incentives, but combined they cannot pay for more than 85% of the total project cost
Trico Electric Cooperative - SunWatts Incentive Program
(Commercial, Residential)
Rebate Amount: PV and wind systems 10 kW or smaller: $3/watt DC
PV and wind systems 10 kW - 1 MW: Performance-Based Incentive (not to exceed $0.202 per kWh & negotiated on a per project basis)
Solar water heaters: $0.75 per expected first year kWh savings
Solar Daylighting: $0.20 per expected first year kWh savings
Geothermal Electric: $$0.022/kWh over 20 years
Geothermal Heat: $0.043/kWh over 20 years
Biomass/Biogas (electric): $0.054/kWh over 20 years
Biomass/Biogas (thermal): $0.013/kWh over 20 years
Biomass/Biogas (cooling): $0.029/kWh over 20 years
Biomass/Biogas (CHP - Electric): $0.031/kWh over 20 years
Biomass/Biogas (CHP - Thermal): $0.016/kWh over 20 years
Solar Space Cooling: $0.115/kWh over 20 years
Rebate Maximum: 40% of project costs
Solar Thermal:
UES - Renewable Energy Credit Purchase Program
(Commercial, Residential)
Rebate Amount: PV incentives may be de-rated based on expected performance
Grid-tied residential PV: $3/watt DC
Off-grid Residential (less than 5 kW): $2/watt DC;
Grid-tied non-residential PV: $2.50/watt DC or production-based incentive (PBI)
Off-grid non-residential PV: $1.50/W DC or PBI
Residential solar water/space heating: $750.00 plus $0.25/kWh up to a maximum of $1,750.00
Commercial/large solar water heating and solar HVAC systems: production based incentive
Solar Daylighting: $0.20/kWh estimated first year savings
Other renewables: performance-based incentive
Rebate Maximum: Up-front incentives can pay for no more than 60% of the cost
Trico Electric Cooperative - SunWatts Incentive Program
(Commercial, Residential)
Rebate Amount: PV and wind systems 10 kW or smaller: $3/watt DC
PV and wind systems 10 kW - 1 MW: Performance-Based Incentive (not to exceed $0.202 per kWh & negotiated on a per project basis)
Solar water heaters: $0.75 per expected first year kWh savings
Solar Daylighting: $0.20 per expected first year kWh savings
Geothermal Electric: $$0.022/kWh over 20 years
Geothermal Heat: $0.043/kWh over 20 years
Biomass/Biogas (electric): $0.054/kWh over 20 years
Biomass/Biogas (thermal): $0.013/kWh over 20 years
Biomass/Biogas (cooling): $0.029/kWh over 20 years
Biomass/Biogas (CHP - Electric): $0.031/kWh over 20 years
Biomass/Biogas (CHP - Thermal): $0.016/kWh over 20 years
Solar Space Cooling: $0.115/kWh over 20 years
Rebate Maximum: 40% of project costs
Sulphur Springs Valley EC - SunWatts Rebate Program
(Commercial, Industrial, Residential, Construction, Agricultural)
Rebate Amount: PV systems up to 10 kW and/or that cost less than $75K: customer may choose a capacity-based upfront rebate or a production-based incentive.
PV systems over 10 kW or that cost more than $75,000, and all wind and biomass systems: customer may only take the production-based incentive
Upfront rebate (PV only): $3.00/W DC (residential), $2.50/W (commercial and industrial)
Production-based incentive: $0.108 per kWh to $0.202 per kWh, depending on the length of the agreement, and whether the system is grid-connected
Solar water heaters: $0.75 per first year expected kWh savings
Homebuilder incentive: $1,500 for 2kW systems or larger installed on new homes
Rebate Maximum: 50% of project costs
TEP - Renewable Energy Credit Purchase Program
(Commercial, Residential)
Rebate Amount: Up-front incentives for PV may be de-rated based on expected performance
Residential PV: $3.00/W-DC or performance-based incentive for on-grid systems, $2.00/W-DC for off-grid systems;
Non-Residential PV: $2.50/W-DC or performance based incentive for on-grid systems, $0.121/kWh of estimated annual production for off-grid systems;
Wind: $2.50/W-AC for on-grid systems, $2.00/W-AC for off-grid systems; or a performance-based incentive
Daylighting (non-residential only): $0.20 per kWh savings for 5 years; Residential Solar Water Heater: $0.25/kWh-equivalent, plus $750 up to a maximum amount of $1,750, or performance-based incentive;
Non-Residential Solar Water Heater: performance base incentive;
All other eligible technologies can receive performance based incentives which vary depending on the technology and the length of the contract. Contract options for performance-based incentives are 10, 15 and 20 years.
Rebate Maximum: Residential PV systems greater than 20 kW AC will receive rebates on the first 20 kW AC only, TEP incentive for PV can not exceed 60% of the total project cost.
TEP incentive for PV may be combined with other state and federal incentives, but combined they cannot pay for more than 85% of the total project cost
Net-Metering:
Arizona - Net Metering
Amount: Credited to customer's next bill at retail rate; excess reconciled annually at avoided-cost rate
SRP - Net Metering
Amount: Reconciled annually; utility pays average annual market price minus price adjustment of $0.00017/kWh
Production Incentive:
APS - Renewable Incentive Program
(Commercial, Residential)
Rebate Amount: PV incentives may be de-rated based on expected performance
Grid-tied residential PV: $3/watt DC
Off-grid residential PV (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 Incentives: PV: 50% of project costs. Up-front incentive payment is limited to $75,000, SWH: 50% of system costs
Personal Tax Credit:
Non-Residential Solar & Wind Tax Credit (Personal)
(Commercial, Industrial, Nonprofit, Schools, Local Government, State Government, Tribal Government, Fed. Government, Agricultural, Institutional)
System: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics
Amount: 10% of installed cost
Maximum Incentive: $25,000 for any one building in the same year and $50,000 in total credits in any year
Residential Solar and Wind Energy Systems Tax Credit
(Residential)
System: Personal Tax Credit Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Solar Ovens, Solar Cooling, Solar Pool Heating
Amount: 25% of installed costs
Maximum Incentive: $1,000 maximum credit per residence, regardless of number of energy devices installed
Property Tax Exemption:
Property Tax Assessment for Renewable Energy Property
(Utility, Other entities that generate, transmit or distribute -- but do not use -- eligible electricity)
System: Solar Thermal Electric, Photovoltaics
Amount: Renewable-energy equipment assessed at 20% of its depreciated cost
Energy Equipment Property Tax Exemption
(Commercial, Industrial, Residential)
System: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Geothermal Electric, Geothermal Heat Pumps, Solar Cooling, Solar Pool Heating
Amount: 100% of increased value
Sales Tax Refund/Rebate:
System: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Photovoltaics, Solar Pool Heating
Amount: 100% of sales tax on eligible equipment
Corporate Tax Credit
Non-Residential Solar & Wind Tax Credit (Corporate)
(Commercial, Industrial, Nonprofit, Schools, Local Government, State Government, Tribal Government, Fed. Government, Agricultural, Institutional)
System: (Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics)
Amount: 10% of installed cost
Maximum Incentive: $25,000 for any one building in the same year and $50,000 in total credits in any year
Renewable Energy Business Tax Incentives:
(Commercial, Industrial)
System: (Solar Water Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics)
Amount: Varies
Maximum Incentive: No individual limit. The aggregate amount of tax credits that be approved state-wide is $70 million per taxable year.
Corporate Exemption:
Amount: N/A
Click here for additional information on Solar Incentives for Arizona
http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=AR
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