Through the Renewable Incentive Program, Arizona Public Service (APS) offers customers who install various renewable energy sources the opportunity to sell the credits associated with the energy generated to APS.
Arizona Residential Solar and Wind Energy Systems Tax Credit
||Personal Tax Credit
|Eligible Renewable/Other Technologies:
||Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Solar Ovens, Solar Cooling, Solar Pool Heating, Daylighting
||$1,000 maximum credit per residence, regardless of number of energy devices installed
||Excess credit may be carried over 5 years.
|Eligible System Size:
||System must be new and in compliance with all applicable performance and safety standards; must carry a minimum 2-yr warranty on collectors, heat exchangers, and storage units; other equipment and installation must carry a minimum 1-yr warranty.
Arizona's Solar Energy Credit provides an individual taxpayer with a credit for installing a solar or wind energy device at the taxpayer's Arizona residence. The credit is allowed against the taxpayer's personal income tax in the amount of 25% of the cost of a solar or wind energy device, with a $1,000 maximum allowable limit, regardless of the number of energy devices installed. The credit should be claimed in the year of installation and if the amount of the credit exceeds a taxpayers liability in a certain year, the unused portion of the credit may be carried forward for up to five years.
Qualifying technologies include solar domestic water heating systems, solar swimming pool and spa heating systems, solar photovoltaic systems, solar photovoltaic phones and street lights, passive solar building systems (trombe walls, thermal mass, etc.), solar daylighting systems (excluding conventional skylights), wind generators, and wind powered pumps.
In addition to federal tax credits and state exemptions, the majority of Arizona solar panel rebates come from local utility companies. Below are some examples of Arizona solar rebates available through utility programs.
Arizona Public Service (APS) Renewable Energy Incentive Program - Residential grid-tied solar PV systems are eligible for up to $1.95/watt. Off-grid solar panel systems are eligible for $2.00/watt.
Salt River project (SRP) EarthWise Solar Energy Incentive Program - Residential solar PV systems are eligible for $2.15/W-DC rebate.
Sulphur Springs Valley EC SunWatts Rebate Program - Solar PV systems up to 10kW that cost less than $75,000 are eligible to receive either production incentives or an up-front rebate. The production incentives pay per kilowatt-hour produced. The incentive rate is $0.108 to $0.202 per kWh. Homeowners who choose the up-front rebate will receive $3.00/W-DC.
Tucson Electric Power Sunshare Program - This Arizona solar rebate program offers residential customers up to $3.00/W-DC for grid-tied systems and $2.00/W-DC for off-grid. PV incentives cannot exceed 60 percent of the total solar installation costs.
Trico Electric Cooperative SunWatts Incentive Program - Arizona solar PV systems less than 10 kW can receive $3.00/W-DC. Solar incentives cannot exceed over 40 percent of the total home solar installation costs.
UniSource Energy Services Renewable Incentive Program - Grid-tied solar panel systems can earn up to $3.00/W-DC and off-grid solar systems are eligible for $2.00/W assuming they are less than 5 kW.
Most Arizona solar panel systems are eligible for net metering, which means any excess power your residential solar panels generate will be given back to you in the form of credit to pay for any future electricity used from the grid or a check.