Residential
Solar Electric (PV), Solar Water Heating (Thermal)
Federal Income Tax Credit
A federal income tax credit of 30% of the system cost is available for solar electric (PV) systems, solar water heating (thermal) and wind energy systems.
Arizona State Income Tax Credit
A state income tax credit of 25% of the system cost (up to $1,000) is available for solar electric (PV) systems, solar water heating (thermal) and wind energy systems.
Arizona Property Tax Exemption
The Arizona property tax code exempts from taxation the amount of the appraised property value that arises from the installation of a solar electric, solar water heating, or wind energy system.
Solar Electric (PV) Systems Utility Rebates
Arizona Public Service
Arizona Public Service (APS) provides their grid-tied customers up to $3.00 per installed DC watt (up to 50% of the system cost) through their solar electric (PV) rebate program. For customers located within APS territory, but not connected to the grid, APS provides up to $2.00 per installed DC watt for a solar electric (PV) installation (for systems less than 5 kilowatt).
Salt River Project
Salt River Project (SRP) provides their customers up to $2.70 per installed watt (up to $13,500) through their SRP EarthWise Solar Energy program.
Solar Water Heating (Thermal) Systems Utility Rebates
Arizona Public Service
Arizona Public Service (APS) provides their customers an incentive equal to $0.75 per installed kilowatt hour of energy savings in the first year (up to 50% of the system’s cost) for a solar water heating system.
Salt River Project
Salt River Project (SRP) provides their customers an incentive of $0.50 per installed kilowatt-hour of energy savings for a solar water heating system.
Commercial
Solar Electric (PV), Solar Water Heating (Thermal)
Treasury Grant
Commercial projects may opt to apply for a Treasury Energy Grant in lieu of the investment tax credit (ITC). This applies to equipment placed in service by December 31, 2010 or construction has begun by December 31, 2010 and is completed by December 31, 2013. The grant is paid out by the Treasury within 60 days of the project completion and application is filed.
Federal 5 Year Accelerated Depreciation Schedule
Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover the cost of a solar electric, solar water heating, or wind energy system on an accelerated 5-year schedule. In 2008 and 2009 the above investments qualify for the 50% Bonus Depreciation schedule. The owner is entitled to deduct 50% of the adjusted basis of the property in the first year of operation. The remaining 50% of the adjusted basis of the property is depreciated over the ordinary depreciation schedule. The Depreciation Basis is calculated as the System Installation Price – (1/2) Federal Investment Tax Credit.
Federal Income Tax Credit
A federal income tax credit of 30% of the system cost is available for solar electric (PV) systems, solar water heating (thermal) and wind energy systems.
Arizona State Income Tax Credit
A state income tax credit of 10% of the system cost (up to $25,000 for one building and up to $50,000 in total credits in a single year) is available for solar electric (PV) systems, solar water heating (thermal) and wind energy systems.
Arizona Property Tax Exemption
The Arizona property tax code exempts from taxation the amount of the appraised property value that arises from the installation of a solar electric, solar water heating, or wind energy system.
Solar Electric (PV) Systems Utility Rebates
Arizona Public Service
Arizona Public Service (APS) provides their grid-tied customers up to $2.50 per installed DC watt (up to 50% of the system cost or $75,000) through their solar electric (PV) rebate program. For customers located within APS territory, but not connected to the grid, APS provides up to $1.50 per installed DC watt for a solar electric (PV) installation.
Additionally, APS customers can opt to receive a 10, 15, or 20 year Production Based Incentive (PBI).
Salt River Project
For solar electric systems smaller than 20 kW, Salt River Project (SRP) provides their customers up to $2.70 per installed watt (up to $13,500) through their SRP EarthWise Solar Energy program.
For solar electric systems greater than 20 kW, Salt River Project (SRP) provides their customers up to $2.25 per installed watt (up to $450,000) through their SRP EarthWise Solar Energy program.
Solar Water Heating (Thermal) Systems Utility Rebates
Arizona Public Service
Arizona Public Service (APS) provides their customers an incentive equal to $0.75 per installed kilowatt hour of energy savings in the first year (up to 50% of the system’s cost) for a solar water heating system.
Additionally, APS commercial customers can opt to receive a 10, 15, or 20 year Production Based Incentive (PBI).
Salt River Project
Salt River Project (SRP) provides their customers an incentive of $0.50 per installed kilowatt-hour of energy savings (up to $500,000 or 60% of total system cost) for a solar water heating system.