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What solar incentives are available in Arizona?
As a homeowner in Arizona, you have access to several different tax incentives that make solar panels more affordable. Solar incentives are available at both the federal and state levels to help you save thousands on your investment in solar energy.
Solar Calculator is here to help you take the next step in your transition to renewable energy. Below, we’ll discuss some of the different ways you can make solar more affordable.
Federal solar incentives
As part of the Inflation Reduction Act of 2022, congress passed several clean energy provisions to reduce energy costs. Among those provisions was an extension and upgrade of the Federal Investment Tax Credit (ITC).
Federal Investment Tax Credit
The Federal ITC allows you to claim 30% of your total equipment and installation costs on your federal taxes. There is no minimum or maximum amount you can claim and it includes equipment, installation, permitting, and even battery storage.
The ITC will remain at 30% until December 31, 2032. After that it will be reduced to 26% until December 31, 2033, then to 22% the following year. The ITC is currently set to disappear in 2035 unless it is renewed.
Who is eligible for the Federal ITC?
Most homeowners will qualify for the Federal ITC, but not all. You must meet the following criteria to claim your 30% tax credit:
The Federal ITC will also cover the following expenses:
Homeowners save around $10,000 on average with the Federal ITC. But that number can be higher or lower depending on your total expenses.
How to claim the Federal ITC
Claiming your Federal ITC couldn’t be easier. All you have to do is fill out IRS form 5695 and submit it with your tax return. You can consult with a tax professional for more assistance.
Local solar incentives
Who’s eligible : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Institutional, Senior citizens
How to apply : Note: In December 2016, the Arizona Corporation Commission (ACC) voted to replace net metering with "net billing", where new customer-generators will be credited at an avoided cost rate for energy exported to the grid. Although this entry is categorized as net metering, the policy adopted by the ACC does not meet DSIRE's definition of net metering, as excess generation will no longer be netted one-to-one against consumption over the billing period. Eligibility and Availability Net billing is available to investor-owned utility and electric cooperative customers who generate electricity using solar, wind, hydroelectric, geothermal, biomass, biogas, combined heat and power, or fuel cell technologies.* A net billing facility must be located on the customer's premises. System Capacity Limit The Arizona Corporation Commission (ACC) has not set a firm kilowatt (kW)-based limit on system size capacity; instead, systems must be sized to not exceed 125% of the customer’s total connected load. If there is no available load data for the customer, the generating system may not exceed the customer’s electric service drop capacity. Aggregate Capacity Limit The ACC has not set an aggregate capacity limit for all net-billed or net-metered systems in a utility’s territory. The utility must instead demonstrate to the ACC why such a cap should be allowed. Under the ACC rules, each utility must file an annual report listing the net metered facilities and their installed capacity for the previous calendar year. Export Compensation Rate Under a net billing policy, customers may self-consume energy from their systems, effectively receiving a retail rate credit for this energy consumed directly on-site, behind the meter. Any energy not consumed directly on-site is exported to the electric grid and credited at a non-retail rate. The ACC ordered in Decision No. 75859 that new customer-generators will receive an avoided cost rate for energy exported on an instantaneous basis to the grid. The specific avoided cost rates for exported energy differ by utility, but are based on the ACC's adopted avoided cost methodology. The avoided cost rate will at first be calculated using the Resource Comparison Proxy methodology and not reduce the compensation rate by more than 10% annually. After stakeholders have taken the necessary time to further develop implementation parameters for the ACC Staff's 5-year avoided cost methodology, the ACC will be able to utilize either this methodology or the Resource Comparison Proxy methodology in setting export compensation rates in utility rate cases. As of August 2024, the current export compensation rates are 7.619 cents per kWh (Arizona Public Service), 6.33 cents per kWh (Tucson Electric Power), and 7.55 cents per kWh (UNS Electric). Non-residential customer-generators in Arizona Public Service territory, as well as medium and large commercial customer-generators in Tucson Electric Power and UNS Electric territory may still participate in retail rate net metering. Net Excess Generation For net billing customers, monthly net excess generation is carried forward indefinitely, with the utility paying the customer for remaining credits at the end of the annual period if the credit amounts exceeds a certain balance. For Arizona Public Service, this credit balance is $25, and for Tucson Electric Power and UNS Electric the credit balance is $10. For non-residential customers eligible for retail rate net metering, net excess generation is carried forward and credited to the customer at the utility's avoided cost rate at the end of the annual period. Cooperatives Electric cooperatives are permitted to use methodologies other than the Resource Comparison Proxy methodology and the Five-Year Avoided Cost methodology to determine export compensation rates. Rate Design The ACC previously required that net metering charges be assessed on a non-discriminatory basis. Any new or additional charges that would increase an eligible customer-generator's costs beyond those of other customers in the rate class to which the eligible customer-generator would otherwise be assigned must be proposed to the ACC for consideration and approval. However, in Decision No. 75859, the ACC determined that rooftop solar customers are partial requirements customers who export power to the grid, and may be separated into their own rate class. Arizona Public Service requires residential customer-generators to participate in one of its time-of-use rates. There are four time-of-use options available to customer-generators. Two of these tariffs include on-peak demand charges, and one tariff does not include a demand charge, but requires customer-generators to pay a grid access charge of $0.93 per kW-DC of on-site generation. The fourth option is available to customers with at least two eligible on-site technologies, such as solar and battery storage or solar and an electric vehicle. This option includes both on-peak and off-peak demand charges. Tucson Electric Power and UNS Electric also require residential and small commercial customer-generators to participate in a time-of-use rate. The utilities offer time-of-use options with and without a demand charge. Grandfathering Customers interconnecting to the utility's distribution system prior to the effective date of the decision implementing the new export compensation rate in each utility's rate case will be grandfathered under the former net metering rules for a period of 20 years. The provisions described below apply only to grandfathered customers: Net metering is accomplished using a single bi-directional meter, whereby production and consumption are netted at a one-to-one ratio over the billing period, providing customers with a retail rate credit for system production. Any customer net excess generation (NEG) (kilowatt-hours (kWh) produced in excess of kWhs consumed over the entire the billing period) will be carried over to the customer's next bill at the utility's retail rate, as a kWh credit. Any NEG remaining at the customer’s last monthly bill in the annual true-up period will be paid to the customer, via check or billing credit, at the utility’s avoided cost payment. For customers taking service under a time-of-use rate, off-peak generation will be credited against off-peak consumption, and on-peak generation will be credited against on-peak consumption. The customer’s monthly bill is based on the net on-peak kWh and net off-peak kWh amounts. Any monthly customer NEG will be carried over to the customer's next bill as an off-peak or on-peak kWh credit. *Salt River Project and municipal utilities do not fall under the jurisdiction of the Arizona Corporation Commission, and are therefore not subject to the state rules for distributed generation compensation.
Who’s eligible : State Government
How to apply : Arizona has energy requirements for state buildings contained within their statutes. A.R.S. § 34-451 requires the Department of Administration, the Department of Transportation, and the Arizona Board of Regents to reduce their energy use by 15% by July 1, 2011 using July 1, 2001 through June 30, 2002 as the baseline year. As a whole, the three building systems reduced their energy usage on a BTU per square foot basis by 15.8% by July 2011, meeting the requirements of the statute. The statute also requires all departments to purchase products certified by Energy Star or the Federal Energy Management Program (FEMP) in all categories that are available unless the products are shown not to be cost-effective on a life cycle cost basis. The statute also required the Governor's Office of Energy Policy to adopt energy conservation standards for all new capital projects, including buildings designed and constructed by school districts, community college districts, and universities. The Governor's Office of Energy Policy (which has since been dissolved) selected ASHRAE Standard 90.1-2004, which is also a prerequisite for LEED certification. Background Two Executive Orders passed by a previous administration, EO 2005-05 and EO 2008-29, established energy requirements for new state-funded buildings. EO 2005-05 required new state-funded buildings to include renewable energy in their power mix and to meet energy efficiency and green building standards. Executive Order 2008-29 reaffirmed those goals and established a new requirement for state agencies to conduct an analysis of their energy usage by January 15, 2009 and to identify what is required to meet their goals. From 2009 to 2012, investment grade audits were conducted on 55 state buildings. Sixteen large state government buildings received energy conservation measures.
Who’s eligible : Construction, Schools, State Government
How to apply : Arizona law requires that new state building projects over 6,000 square feet follow prescribed solar design standards. Solar improvements should be evaluated on the basis of life cycle costs. Affected buildings include buildings designed and constructed by the department of administration, school districts and universities. These projects must include an evaluation of: (a) proper site orientation; (b) active and passive solar energy systems for space heating; (c) solar water heating; and (d) use of solar daylighting devices.
Who’s eligible : Commercial, Industrial, Residential
How to apply : The Arizona Corporation Commission adopted final rules for interconnection of distributed generation facilities in 2020 after a multi-year proceeding. There are three levels of review for interconnection applications: 1. Super Fast Track - available for inverter-based generating facilities with a maximum capacity of 20 kW or less which only uses certified equipment 2. Fast Track - available for generating facilities with a maximum capacity of less than 2 MW. 3. Study Track - available for generating facilities of 2 MW or greater or that do not meet the screening requirements for the other tracks. Additionally, customers seeking interconnection of a non-exporting inverter-based energy storage generating facility or an inadvertent export generating facility with a capacity of 20 kW or less can apply for interconnection under an expedited interconnection process. Utilities may require external disconnect switches. Inverter-based systems must include advanced inverters with various grid support features. Insurance is generally not required, except that utilities receiving funding from the U.S. Rural Utility Service may require customers to have insurance sufficient to meet the utility's obligation to the service.
Who’s eligible : Investor-Owned Utility, Retail Supplier
How to apply : Note: The Arizona Corporation Commission is currently considering changes to the state's Renewable Energy Standard in Docket No. E-00000Q-16-0289. In November 2006, the Arizona Corporation Commission (ACC) adopted final rules to expand the state's Renewable Energy Standard (RES) to 15% by 2025, with 30% of the renewable energy to be derived from distributed energy technologies. In June 2007, the state attorney general certified the rule as constitutional, allowing the new rules to go forward, and they took effect 60 days later. Investor-owned utilities and electric power cooperatives serving retail customers in Arizona, with the exception of distribution companies with more than half of their customers outside Arizona, are subject to the standard. Utilities subject to the RES must obtain renewable energy credits (RECs**) from eligible renewable resources to meet 15% of their retail electric load by 2025 and thereafter. Of this percentage, 30% (i.e. 4.5% of total retail sales in 2025) must come from distributed renewable (DR) resources by 2012 and thereafter. One-half of the distributed renewable energy requirement must come from residential applications and the remaining one-half from non-residential, non-utility applications. The compliance schedule is: 2006: 1.25% 2007: 1.50% (5% DR) 2008: 1.75% (10% DR) 2009: 2.00% (15% DR) 2010: 2.50% (20% DR) 2011: 3.00% (25% DR) 2012: 3.50% (30% DR) 2013: 4.00% (30% DR) 2014: 4.50% (30% DR) 2015: 5.00% (30% DR) 2016: 6.00% (30% DR) 2017: 7.00% (30% DR) 2018: 8.00% (30% DR) 2019: 9.00% (30% DR) 2020: 10.00% (30% DR) 2021: 11.00% (30% DR) 2022: 12.00% (30% DR) 2023: 13.00% (30% DR) 2024: 14.00% (30% DR) 2025: 15.00% (30% DR) A utility may use bundled RECs acquired in any year to meet its annual requirement. With the exception of incremental generation from hydropower facilities or hydropower output used to firm intermittent renewables, renewable energy from facilities installed before January 1, 1997, is not eligible. Energy produced by eligible renewable energy systems must be deliverable to the state. Extra credit multipliers may be earned for early installation of certain technologies, in-state solar installation, and in-state manufactured content. The multipliers are additive, but cannot exceed 2.0. RECs derived from renewables installed after December 31, 2005, are not eligible for multipliers. If a utility makes an investment in a solar electric manufacturing plant located in state or provides incentives for a plant to locate in the state, the utility can acquire RECs for the main RPS tier equal to the capacity of the panels produced multiplied by 2,190 hours, which approximates a 25% capacity factor. These RECs cannot account for more than 20% of the annual requirement. Utilities subject to the RES must submit compliance and implementation plans annually to the ACC. Utilities recover RES costs through a monthly surcharge. Each affected utility may adopt their own surcharge but it must be substantially similar to the sample tariff provided in the rules, and it must receive approval from the ACC. Affected utilities also have the option to file a rate case with the ACC in lieu of a tariff. Background Prior to the 2006 rules, Arizona's original Environmental Portfolio Standard (EPS) required regulated utilities to generate 0.4% of their power from renewables in 2002, increasing to 1.1% in 2007-2012. Solar electric power was to make up 50% of total renewables in 2001, increasing to 60% in 2004-2012. The EPS was an update of repealed 1996 ACC rules for a solar portfolio standard, which set a goal of 0.2% from solar energy by 1999 and 1% by 2003. *In June 2012 the ACC gave final approval of a request by the Mohave Electric Cooperative (MEC) to have a single waste-to-energy facility (i.e., municipal solid waste incinerator) designated as a "pilot program" and be considered an eligible renewable energy resource under the standard. For further details please see Docket E-01750A-10-0453 in the ACC's E-Docket Portal. **For renewable energy systems that produce electricity, one REC equals one kilowatt-hour (kWh). For renewable energy systems that produce heat (solar water heating, solar industrial process heating and cooling, solar space cooling, biomass thermal systems, biogas thermal systems, and solar space heating systems), one REC equals 3,415 British Thermal Units (BTUs). In Arizona, a REC is a bundled package of three elements: the kWh, the renewable attributes, and any environmental attributes. All three must be delivered to Arizona customers and utilities in order to meet the RES requirements. Unbundled "paper RECs" will NOT meet RES requirements.
Can you claim multiple tax incentives in Arizona?
Yes. You are allowed to claim multiple solar incentives for the same installation. However, you can only claim each incentive once. For more guidance on how to claim your solar tax incentives, talk to your installer or consult with a licensed tax professional before submitting your tax forms.
Does Arizona offer tax exemptions?
Rebate Program
Category : Financial Incentive
Website : https://www.tep.com/business-energy-solutions/commercial-program/program-process/
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools, State Government, Federal Government
Incentive Amount : Compressed Air VSD Air Compressors (5 to 40 HP): $100/HP Energy Management Systems Programmable Thermostats: $0.60 - $0.80 Exhaust Systems High-Efficiency Low Flow Fume Hood: $550 - $1,650/hood HVAC HVAC, Controls, Sensors,Retro Commissioning, and Shade Screen: $15 - $45/ton Additional details found here HVAC Tune-Up/Advanced Diagnostic Tune-Up System Test Repair: Up to $750 Lighting Lighting: $2.50 - $215 Additional details are here Motors Motors: $100 - $395 Additional details are here Power Management Computer Power Management Software: $6.00/computer Refrigeration Details can be found here System Test and Repairs Up to $750/unit Up to $15/ton Details can be found here
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.srpnet.com/energy-savings-rebates/business/savings-tools
Applicable Sectors : Commercial, Construction, Industrial, Federal Government, Multifamily Residential
Incentive Amount : Standard Business Rebates Lighting, HVAC, Compressed Air, Refrigeration, Data Center, Kitchen Equipment, and other rebates are available at the link above. Business Demand Response This program pays businesses to cut energy consumption during periods of peak demand. Program participants earn payments for curtailing electricity consumption. See the program link above for more information Custom Energy Efficiency Rebates $0.08 per kilowatt-hour for the first year of electricity savings plus $300 per average peak kW saved, up to 75% of the incremental cost. Because each project is different, savings are determined on a per-project basis. See the program link above for more information. Small Business Energy Efficiency Rebates SRP business customers can receive a no-cost energy assessment ($125 value) and discounts that cover 25%–75%* of the costs for new energy-efficient equipment, including: Smart Thermostats, Lighting Upgrades, and HVAC equipment. See the program link above for complete information New Construction Rebates This program offers energy design assistance service rebates, design team service rebates, and two tiers of building owner equipment rebates. See the program website above or contact the program administrator for more information. Building Systems Upgrade Rebates This program offers facilities assistance in "tuning up" the major components of the building to improve energy efficiency. See the program website above or contact the program administrator for more information. Electrification Rebates This program offers up to $50,000 in rebates for switching to electric equipment, such as electric forklifts, truck charging bays, and custom conversion projects. See the program website above or contact the program administrator for more information. Business EV Charger Rebates This program offers rebates for Level-2 Chargers, DC Fast Chargers, and Fleet advisory services. See the program website above or contact the program administrator for more information. Rebates for ENERGY STAR® Homebuilders Incentives shall be determined by the home’s total estimated annual kWh savings as compared to a code-built home. See the program website above or contact the program administrator for more information. Ultraviolet Germicidal Irradiation (UVGI) Rebates As part of SRP's response to COVID-19, rebates are offered on specific UVGI technologies that can help make company facilities safer. See the program website above or contact the program administrator for more information. Multifamily solution rebates The SRP Multifamily Solutions Program makes it easy and affordable to make energy efficiency upgrades so your community can start reaping the benefits. See the program website above or contact the program administrator for more information. Smart thermostat rebates Get free* smart thermostats after rebates and bill credits when you join the SRP Bring Your Own Thermostat Program™ (BYOT) for business.See the program website above or contact the program administrator for more information.
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.aps.com/en/Residential/Save-Money-and-Energy/Your-Energy-Your-Options/Rebates
Applicable Sectors : Residential
Incentive Amount : Duct Sealing: $250 per system Insulation: $250 Smart Thermostat: $30 per system Water Heater Timer: $200 per system (limit: 2) AC Upgrade: $200 - $1,200 Home Energy Modifier: $50
Implementing Sector : Utility
Category : Financial Incentive
Website : http://www.ssvec.org/programs/renewable.php
Applicable Sectors : Residential, Federal Government, Agricultural
Incentive Amount : $0.50 per estimated first year kWh savings
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.trico.coop/sustainable-energy/member-installed-solar/
Applicable Sectors : Commercial, Residential, Federal Government
Incentive Amount : $0.40 per expected first year kWh savings
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.swgas.com/en/commercial-rebates-and-promotions
Applicable Sectors : Commercial, Federal Government, Multifamily Residential
Incentive Amount : Clothes Washer: $50 Low-Flow Showerhead: $5 Tankless Water Heater: $375 Natural Gas Storage Water Heater: $550 - $650 Boiler Equipment: $120 and $3.00/MBtuh Air Curtain: $2,100 Steamer: $500 Fryer: $650 Infrared Charbroiler Burner: $500 Dishwasher: $200 Pre-Rinse Spray Valve: $50 Custom Projects: $1/therm Solar Water Heating System: $11.50/therm Solar Pool Heating System: $11.50/therm Combined Heat and Power: $400 - $500
Implementing Sector : Utility
Category : Financial Incentive
Website : https://srpnet.com/menu/savings/rebates_discounts.aspx
Applicable Sectors : Residential, Low Income Residential
Incentive Amount : Home Energy Assessment: FREE Home Energy Audit: $100 Air Conditioning: up to $1,125 Smart Thermostat: up to $100 Insulation: up to $600 Window Treatments: $1.00/sq. ft. Window Replacement: $/sq. ft. Duct Repair: up to $400 Residential EV charger: $250 Demand Management System: $250 Cool Roof: Up to $600 Heat Pump Water Heater: $500
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.mohaveelectric.com/energy-solutions/rebates/
Applicable Sectors : Commercial, Residential
Incentive Amount : Commercial Lighting See application form. Heat Pumps 15 SEER Heat Pump: $200 Rebate 16 SEER Heat Pump: $750 Rebate 17 SEER Heat Pump: $1,500 Rebate Greater Than 17 SEER Heat Pump: $2,000 Rebate Batteries 5 kWh or Larger: $500 SunWatts Renewable Solar Power and Water Heating: $0.05/watt, up to 50 KW Air Conditioning 15 SEER AC: $200 Rebate 16 SEER AC: $750 Rebate 17 SEER AC: $1,500 Rebate Greater Than 17 SEER AC: $2,000 Rebate Mini-Split 15 SEER Mini-Split: $200 Rebate 16 SEER Mini-Split: $300 Rebate 17 SEER Mini-Split: $400 Rebate Greater Than 17 SEER Mini-Split: $500 Rebate
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.ssvec.org/programs/rebates.php
Applicable Sectors : Residential
Incentive Amount : Electric Storage Water Heater: $100 All-Electric Heat Pump: $500 All-Electric Split System Heat Pump: $500 All-Electric Ductless Heat Pump: $500 Duel Fuel Installation: $200
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.swgas.com/en/rebate/arizona-combined-heat-and-power-program-business
Applicable Sectors : Commercial, Industrial, Federal Government
Incentive Amount : 70% Minimum Fuel Efficiency: $500 per kW up to 50% of installed cost 65% Minimum Fuel Efficiency: $450 per kW up to 50% of installed cost 60% Minimum Fuel Efficiency: $400 per kW up to 50% of installed cost
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.tep.com/efficient-home-program/
Applicable Sectors : Residential, Installers/Contractors
Incentive Amount : ENERGY STAR Heat Pump installation: Up to $900 ENERGY STAR Air Conditioning installation: Up to $750 AC Tune-up: Up to $175 Duct Sealing: Up to $300 Mini Split Heat Pump: Up to $120/ton Air Conditioner: Up to $120/ton
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.uesaz.com/efficient-home-program/
Applicable Sectors : Construction, Residential, Installers/Contractors
Incentive Amount : ENERGY STAR Heat Pump installation: Up to $450 ENERGY STAR Air Conditioning installation: Up to $375 AC Tune-up: Up to $200 Duct Sealing: Up to $150
Implementing Sector : Utility
Category : Financial Incentive
Website : https://savewithsrpbiz.com/rebates/evcharger.aspx
Applicable Sectors : Commercial, Local Government, Nonprofit, Schools, Tribal Government, Multifamily Residential, Low Income Residential
Incentive Amount : Level 2 EV Charger Standard Charger: $1,500 Charger in Disadvantaged area: $2,500 Government agency, tribal community, nonprofits, multifamily properties, and schools: $4,000 - $5,000/charger DC Fast Charger Standard: $15,000/station Disadvantaged Area: $20,000/station Government agency, tribal community, nonprofits, multifamily properties, and schools: $20,000 - $25,000/charger
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.aps.com/en/About/Sustainability-and-Innovation/Technology-and-Innovation/Electric-vehicles/Take-Charge-AZ
Applicable Sectors : Commercial, Local Government, Nonprofit, Schools, Multifamily Residential
Incentive Amount : 100% of cost for qualifying commercial customers, such as 501(c)(3) non-profits, schools, multifamily communities and municipalities. 50% of cost for non-qualifying commercial customers
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.tep.com/electric-vehicles/
Applicable Sectors : Residential
Incentive Amount : Level-2 EV Charger $200 for less than 30 amps $300 for 30 to 49 amps $500 for 50 or more amps
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.tep.com/smart-ev-charging-program/
Applicable Sectors : Commercial, Nonprofit, Multifamily Residential
Incentive Amount : Standard Rebates Level 2 Workplaces: $4,000/port; up to 75% of project cost Level 2 Multi-Family and Non-Profit: $5,400/port; up to 85% of project cost DCFC: $20,500/port; up to 75% of project cost Disadvantaged Community Eligible Rebates* Level 2 Workplaces: $6,000/port; up to 75% of project cost Level 2 Multi-Family and Non-Profit: $9,000/port; up to 85% of project cost DCFC: $40,000/port; up to 75% of project cost
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.aps.com/en/Business/Save-Money-and-Energy/Business-Solutions
Applicable Sectors : Commercial
Incentive Amount : See program website, listed under "Find Savings Now"
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.mohaveelectric.com/energy-solutions/renewable-energy/sunwatts-renewable-energy-program/
Applicable Sectors : Commercial, Residential, Federal Government
Incentive Amount : PV and Wind systems: $0.05/W Solar Water Heating: $0.75/kWh of estimated first year energy savings
Implementing Sector : Utility
Net Metering
Category : Regulatory Policy
Website : https://www.srpnet.com/price-plans/residential-electric/solar/customer-generation
Applicable Sectors : Commercial, Residential, Low Income Residential
Incentive Amount :
Implementing Sector : Utility
Category : Regulatory Policy
Website :
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Institutional, Senior citizens
Incentive Amount :
Implementing Sector : State
Energy Standards for Public Buildings
Category : Regulatory Policy
Website : https://www.chandleraz.gov/government/city-managers-office/sustainability
Applicable Sectors : Local Government
Incentive Amount :
Implementing Sector : Local
Category : Regulatory Policy
Website : http://www.scottsdaleaz.gov/green-building-program
Applicable Sectors : Local Government, Institutional
Incentive Amount :
Implementing Sector : Local
Category : Regulatory Policy
Website :
Applicable Sectors : State Government
Incentive Amount :
Implementing Sector : State
Category : Regulatory Policy
Website :
Applicable Sectors : Construction, Schools, State Government
Incentive Amount :
Implementing Sector : State
Category : Regulatory Policy
Website : https://www.phoenix.gov/sustainability/energy
Applicable Sectors : Local Government
Incentive Amount :
Implementing Sector : Local
Interconnection
Category : Regulatory Policy
Website : http://www.azcc.gov/divisions/utilities/electric.asp
Applicable Sectors : Commercial, Industrial, Residential
Incentive Amount :
Implementing Sector : State
Renewables Portfolio Standard
Category : Regulatory Policy
Website : https://www.azcc.gov/utilities/electric/renewable-energy-standard-and-tariff
Applicable Sectors : Investor-Owned Utility, Retail Supplier
Incentive Amount :
Implementing Sector : State
Solar/Wind Access Policy
Category : Regulatory Policy
Website :
Applicable Sectors : Residential
Incentive Amount :
Implementing Sector : State
Solar/Wind Permitting Standards
Category : Regulatory Policy
Website : https://phoenix.municipal.codes/CC/A.2_Part20_Sec232
Applicable Sectors : Residential
Incentive Amount :
Implementing Sector : Local
Category : Regulatory Policy
Website : https://www.pima.gov/1069/Solar-Wind-Systems
Applicable Sectors : Commercial, Industrial, Residential
Incentive Amount :
Implementing Sector : Local
Category : Regulatory Policy
Website : http://www.maricopa.gov/797/Planning-Development
Applicable Sectors : Commercial, Industrial, Residential
Incentive Amount :
Implementing Sector : Local
Category : Regulatory Policy
Website : https://azmag.gov/About-Us/About-MAG
Applicable Sectors : Construction, Residential, Installers/Contractors
Incentive Amount :
Implementing Sector : Local
Category : Regulatory Policy
Website :
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Agricultural
Incentive Amount :
Implementing Sector : State
Building Energy Code
Category : Regulatory Policy
Website : https://www.energycodes.gov/status/states/arizona
Applicable Sectors : Commercial, Residential
Incentive Amount :
Implementing Sector : State
Category : Regulatory Policy
Website : https://www.tucsonaz.gov/pdsd/water-energy-conservation
Applicable Sectors : Residential
Incentive Amount :
Implementing Sector : Local
Corporate Tax Credit
Category : Financial Incentive
Website : https://azdor.gov/forms/tax-credits-forms/credit-renewable-energy-investment-and-production-self-consumption
Applicable Sectors : Industrial
Incentive Amount : $5 million per year for five years for each renewable energy facility
Implementing Sector : State
Personal Tax Credit
Category : Financial Incentive
Website : https://azdor.gov/forms/tax-credits-forms/credit-solar-energy-credit
Applicable Sectors : Residential
Incentive Amount : 0.25
Implementing Sector : State
Personal Tax Deduction
Category : Financial Incentive
Website :
Applicable Sectors : Residential
Incentive Amount : Total cost, exclusive of taxes, interest and other finance charges
Implementing Sector : State
Category : Financial Incentive
Website : https://azdot.gov/motor-vehicles/vehicle-services/vehicle-registration/alternative-fuel-vehicle
Applicable Sectors : Residential
Incentive Amount : $4 for every $100 in assessed value. Assessed value for vehicles registered prior to 1/1/2022 is 1% of the MSRP. For vehicles registered between 1/1/2022 and 12/31/2022, the assessed value is 20% of the MSRP
Implementing Sector : State
Personal Tax Exemption
Category : Financial Incentive
Website : https://www.azleg.gov/viewdocument/?docName=https://www.azleg.gov/ars/42/05159.htm
Applicable Sectors : Residential
Incentive Amount : 100% use tax exemption
Implementing Sector : State
Sales Tax Incentive
Category : Financial Incentive
Website :
Applicable Sectors : Commercial, Residential, Installers/Contractors
Incentive Amount : 100% of sales tax on eligible equipment
Implementing Sector : State
Property Tax Incentive
Category : Financial Incentive
Website :
Applicable Sectors : Investor-Owned Utility, Municipal Utilities, Cooperative Utilities
Incentive Amount : Renewable energy equipment assessed at 20% of its depreciated cost
Implementing Sector : State
Category : Financial Incentive
Website :
Applicable Sectors : Commercial, Industrial, Residential
Incentive Amount : 100% of increased value
Implementing Sector : State
Green Building Incentive
Category : Financial Incentive
Website : https://www.chandleraz.gov/government/departments/development-services/planning-and-zoning/green-building-program
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, Multifamily Residential, Low Income Residential
Incentive Amount :
Implementing Sector : Local
Category : Financial Incentive
Website : https://www.scottsdaleaz.gov/green-building-program
Applicable Sectors : Commercial, Residential, Multifamily Residential
Incentive Amount :
Implementing Sector : Local
Green Power Purchasing
Category : Regulatory Policy
Website : https://www.phoenix.gov/sustainability
Applicable Sectors : Local Government
Incentive Amount :
Implementing Sector : Local
Appliance/Equipment Efficiency Standards
Category : Regulatory Policy
Website :
Applicable Sectors : Appliance Manufacturers
Incentive Amount :
Implementing Sector : State
Solar/Wind Contractor Licensing
Category : Regulatory Policy
Website : https://roc.az.gov/license-classifications
Applicable Sectors : Installers/Contractors
Incentive Amount :
Implementing Sector : State
Energy Efficiency Resource Standard
Category : Regulatory Policy
Website :
Applicable Sectors : Investor-Owned Utility, Municipal Utilities, Cooperative Utilities
Incentive Amount :
Implementing Sector : State
Equipment Certification
Category : Regulatory Policy
Website :
Applicable Sectors : Commercial, Construction, Industrial, Residential, Installers/Contractors
Incentive Amount :
Implementing Sector : State
What is the best way to pay for solar?
Cash payments
Paying cash upfront is easily the simplest and most cost-effective route — if you can afford it. It lets you maximize your total savings by avoiding interest rates and other fees. You also don’t have to worry about making monthly payments. But the downside is you have to spend a lot of cash at once which isn’t an option for everyone.
Pros
Cons
Financing
Financing solar panels is probably the most common payment method. You get to own the system — as opposed to leasing — but you don’t have to spend all your cash at once. And although you do have to pay interest, you can secure a fairly low interest rate as long you have good credit.
Pros
Cons
Solar leases and PPA agreements
If purchasing solar equipment isn’t an option for you, a lease or a PPA may be worth exploring. This is where you are essentially “renting” the equipment for a fixed rate each month. And although you don’t have ownership of your system, there are other benefits such as maintenance and servicing agreements.
Pros
Cons
Going solar doesn’t have to break the bank
Going solar is becoming more affordable than ever. And thanks to a variety of solar incentives in Arizona, you can save thousands more on your investment.
Want to get an idea for what it will cost you to go solar? You can use our solar cost calculator to generate a customized estimate instantly. We take into consideration a wide range of criteria including location, electric bill, roof size, and other factors. Try it out today and start planning for your future.
