Arizona residential solar energy incentives

Personal Tax Credit

  • A personal Tax Credit of 25% is available as an incentive for installing solar and wind energy systems in your home.

    • There is an upper limit of $1,000 regardless of the number of devices installed.

Property Tax Exemption

  • The Solar Energy Property Tax Exemption in Arizona allows residents to claim 100% of the increased value after installing a solar energy device that provides heating and cooling without using conventional power sources.

Sales Tax Exemption

  • People are 100% exempt from sales tax on a solar power device which is purchased and installed in their residence.

    • Be sure to only buy solar energy devices from a retailer that is registered with the Arizona Department of Revenue.

Green Building Incentive

  • This incentive is designed to encourage environmentally responsible building by incorporating resource and energy-efficient materials and methods in the design and construction of homes.

  • With the Green Building Incentive projects receive building permits in two-thirds of the time as regular projects depending on degree of difficulty.

  • As part of the plan review and approval with this incentive, development process and technical assistance is provided.

Utility Loan Program

  • Arizona Public Service offers a GEOSmart Financing Program for residential solar energy generating systems.

    • This program helps one get a loan of up to $50,000, at low interest rates of 7.99% to 12.99%, for 10, 15 and 20 year terms.

    • This is to encourage people to finance solar energy technologies in residential areas.

  • Another program by Sulphur Springs Valley Electric Cooperative also offers loans for residential and commercial properties.

    • These loans are for Wind and Photovoltaics technology energy generating devices.

    • Loan amount offered is $2.00 per SunWatt produced, with a limit of 25% of the total cost of the project with an interest rate as low as 3%.

Utility Rebate Programs

  • APS offers a Renewable Incentive Program

    • Arizona Public Service offers customers who install renewable energy sources the option to sell the credits connected to the energy generated to APS.

    • The solar technologies eligible for a rebate include photovoltaic, solar hot water, solar HVAC and solar day-lighting systems. Up-front incentives for PV might be de-rated based on expected performance.

  • EarthWise Solar Energy policy provided by SRP

    • Small solar electric system- Up until April 30, 2010 when you install a small solar electric system, SRP will help settle your cost with an incentive of $2.25 per watt, up to $45,000.

    • Large solar electric system- When you install a large solar electric system, SRP will help defray your cost with an incentive of $2.25 per watt, up to $450,000. The incentive is adjusted based on the expected energy generation which is confirmed during a 30-day performance test.

    • Solar water heater- SRP commercial customers who install a solar water heating system qualify for an incentive of $0.50 per kWh of metered first year energy savings, up to $250,000.

  • SunWatts Rebate Program for Sulphur Springs Valley

    • This program provides incentives to SSVEC members for the installation of qualifying renewable energy systems including solar, wind and biomass technologies.

    • SSVEC will provide incentives of $4.00 per installed watt, or up to 50 percent of the total installed cost of the system, whichever is less.

  • TEP has a Renewable Energy Credit Purchase Program

    • Residential PV (on-grid): $3.00/W up front for qualified systems.

    • Residential PV (off-grid):$2.00/W

  • SunWatts Incentive Program provided by Trico Electric Cooperative

    • Trico Electric Cooperative offers home and business owners a rebate of $4/W DC for installing photovoltaic systems and wind energy systems

    • $0.50 per expected first year kWh savings for solar water heaters.

    • The incentive can not exceed 50% of the total system cost.

  • Renewable Energy Credit Purchase Program from UES

    • UES offers customers who install renewable energy sources the option to sell the credits associated with the energy generated to UES.