Today’s solar power in Arizona offers a multitude of popular benefits. In addition to creating a clean, reliable source of renewable energy, solar power’s other advantages include attractive financial incentives and tax credits. These economic bonuses shave substantial amounts from a solar system’s total cost.
When purchasing a solar power system, homeowners can expect long-term savings through reduced utility bills and the following financial advantages:
- Utility Incentives
- Federal Tax Credits
- Arizona State Tax Credits
- Arizona Property and Sales Tax Exemptions
Utility Incentives
All investor-owned Arizona utilities are regulated by the Arizona Corporation Commission. The following utilities support the increasing use of solar power in Arizona:
- Arizona Public Service (APS). APS offers a “Renewable Energy Incentive Program” that provides incentives for solar power in Arizona purchases for APS customers. Residential customers connected to APS power lines can receive a one-time incentive of $1.00 for each installed DC watt of solar power. In addition, customers can get credit for excess energy produced by their solar system.
- Tucson Electric Power (TEP). To encourage the use of photovoltaic systems, TEP provides incentives for systems up to 20 kilowatts AC. These up-front incentives are part of a 20-year Renewable Energy Credit (REC) agreement.
- Unisource Energy Services (UES). UES offers up-front incentives with a 20-year Renewable Energy Credit agreement of $1.60 per watt DC for both on-grid and off-grid customers.
- Trico Electric Cooperative (Trico). Through its “SunWatts Rebate Incentive” program, Trico’s incentives include $1.25 per watt up to 10 kilowatts, up to 30% of the total system cost.
- Sulphur Springs Valley Electric Cooperative (SSVEC). Subject to funds availability and reservation list position, SSVEC will pay an incentive of $2.00 per watt up to 40% of the system cost for systems 10 kilowatts or less and/or that cost less than $75,000. SSVEC also offers a performance based incentive based on the number of kilowatts per hour a system produces. Depending on the length of the agreement, performance incentives range from $0.182 to $0.162 per kilowatt hour up to 50% of the system cost. Performance based incentives are given as a credit on a customer’s monthly electric bill.
In addition to the above, there is one utility that is not regulated by the Arizona Corporation Commission:
- Salt River Project (SRP). SRP’s “EarthWise Solar Energy” program currently provides incentives of $1.35 per watt, up to 5 kilowatts for solar energy systems. This amount will be reduced as SRP reaches pre-established capacity milestones in its incentive program.
With all utility incentive programs, it’s important to check the latest funds availability and requirements. Customer should also inquiry into current net metering programs. With net metering, utilities buy back unused customer electricity for full retail credit
In part two we will discuss the various tax credits for a residential solar property. For more information on solar power incentives and tax credits, contact us!