Arizona Solar Rebates and Incentives

Arizona Rebates and Incentives Summary

Arizona

Arizona has seen some of the hottest solar growth in the country since 2010, but also some of the hottest debates about how utilities can and should manage distributed generation.

 

Despite recent public turmoil regarding he future of rooftop solar in Arizona, the state installed a record 701 megawatts of new solar capacity in 2013 and ranks second in the country for installed solar capacity with more than 1,900 megawatts as of early 2014.

 

While much of Arizona’s solar capacity comes from utility-scale projects in the desert that supply electricity to Arizona and California cities, a growing number of home and business owners are putting solar panels on their roofs and properties. The cost of an installed rooftop solar system dropped 14 percent between 2012 and 2013, according to the Solar Energy Industries Association. That’s almost twice the price decrease the rest of the nation saw.

 

While Arizona has been in the spotlight for political debates resulting from the largest utility in the state campaigning for measures that would reduce the economic viability of net meter, Arizona has strong policies and incentives supporting increased solar adoption.

 

The state’s renewable portfolio standard mandates utilities to get 15 percent of their electricity from renewable resources by 2025. Of that, 30 percent must come from distributed generation on homes and businesses. 

 

Tax credits and rebates are available to property owners who upgrade or maintain renewable energy sources. One such program is Arizona’s Energy Equipment Property Tax Exemption, which has recently come under fire. So far, it has survived.

  

Many utilities in Arizona offer rebates or payback programs to customers who install solar or wind equipment on their properties. Depending on the rebate program, the utility may reimburse the system based on how many kilowatt hours the system is anticipated to produce over a 20 year lifespan. The utility will use those calculations to determine what the rebate for a system is. However, reimbursement funds are limited, so its a good idea to check with both solar installers and local utilities to determine what current rebates are. Installers will also help home or business owners understand how much they can expect in incentives and rebates.

 

(Updated September, 2014)

Arizona Solar Power Financial Incentives

Financial Incentives


Corporate Tax Credit

  • Non-Residential Solar & Wind Tax Credit (Corporate)

Green Building Incentive

  • Chandler - Expedited Plan Review and Certification Fee Reimbursement for Green Buildings
  • Scottsdale - Green Building Incentives
  • Town of Buckeye - Green Building Incentive
  • Tucson - Permit Fee Credit for Solar Energy Systems

Personal Tax Credit

  • Non-Residential Solar & Wind Tax Credit (Personal)
  • Residential Solar and Wind Energy Systems Tax Credit

Property Tax Assessment

  • Property Tax Assessment for Renewable Energy Property

Property Tax Exemption

  • Solar Energy Property Tax Exemption

Sales Tax Exemption

  • Solar and Wind Equipment Sales Tax Exemption

Utility Loan Program

  • Sulphur Springs Valley EC - Member Loan Program
  • Sulphur Springs Valley EC - SunWatts Loan Program

Utility Rebate Program

  • APS - Energy Efficiency Solutions for Business
  • APS - Energy Efficient AC Rebate Program
  • APS - Renewable Incentive Program
  • SRP - EarthWise Solar Energy
  • SRP - PowerWise Business Solutions Energy Efficiency Rebate Program
  • Sulphur Springs Valley EC - Residential Energy Efficiency Rebate
  • Sulphur Springs Valley EC - SunWatts Rebate Program
  • TEP - Commerical Energy Efficiency Rebate Program
  • TEP - Renewable Energy Credit Purchase Program
  • TEP - Residential Energy Efficiency Rebate Program
  • Trico Electric Cooperative - SunWatts Incentive Program
  • UES - Commercial Energy Efficiency Rebate Program
  • UES - Energy Smart Homes Program
  • UES - Renewable Energy Credit Purchase Program
  • UES - Residential Heating and Cooling Rebate Program



Rules, Regulations & Policies


Appliance/Equipment Efficiency Standards

  • Appliance and Equipment Efficiency Standards

Building Energy Code

  • Arizona Building Energy Code
  • Tucson - Solar Design Requirement for Homes

Contractor Licensing

  • Solar Contractor Licensing

Energy Standards for Public Buildings

  • Chandler - Green Building Requirement for City Buildings
  • Renewable Energy and Green Building Standards in New State Buildings
  • Scottsdale - Green Building Policy for Public Buildings
  • Solar Design Standards for State Buildings

Equipment Certification

  • Solar & Wind Equipment Certification

Green Power Purchasing/Aggregation

  • Scottsdale - Green Power Purchasing

Interconnection

  • Interconnection Standards

Line Extension Analysis

  • Line Extension Analysis for PV

Net Metering

  • APS - Net Metering
  • Arizona - Net Metering
  • SRP - Net Metering
  • TEP - Net Metering

Renewables Portfolio Standard

  • Renewable Energy Standard

Solar Access Law/Guideline

  • Solar Energy Covenant Restrictions

Solar/Wind Permitting Standards

  • Maricopa Assn. Of Governments - PV and Solar Domestic Water Heating Permitting Standards
  • Solar Construction Permitting Standards




Related Programs & Initiatives


Alternative Fuels and Advanced Vehicles Data Center
 

The U.S. Department of Energy's Alternative Fuels and Advanced Vehicles Data Center (AFDC) provides a wide range of information and resources to enable the use of alternative fuels and other petroleum-reduction options, such as advanced vehicles, fuel blends, idle reduction and fuel economy. The AFDC site offers a database of state and federal laws and incentives related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation-related topics.



Green Power Network
 

The U.S. Department of Energy's Green Power Network provides news and information on green power markets and activities, including opportunities to buy green power. This site provides state-by-state information on green power marketing and utility green power programs. In addition, the site lists marketers of renewable energy credits (RECs), also known as green tags or renewable energy certificates, which represent the environmental attributes of the power produced from renewable energy projects.



Weatherization Assistance Program
 

The U.S. Department of Energy's Weatherization Assistance Program (WAP) enables low-income families to reduce their energy bills by making their homes more energy-efficient. Through this program, weatherization service providers install energy-efficiency measures in the homes of qualifying homeowners free of charge. The WAP program web site offers a state-by-state map of opportunities, projects and activities.



Wind Powering America
 

The U.S. Department of Energy's Wind Powering America site provides state-by-state information on wind projects and activities, including wind working groups, validated wind maps, anemometer loan programs, small wind guides, state-specific news, wind for schools, workshops and web casts.

Residential Solar and Wind Energy Systems Tax Credit

Program Type Personal tax credit
Technologies Solar: Photovoltaics, passive solar space heating and cooling, solar hot water, solar ovens, solar cooling, solar pool heating, daylighting, and wind.                                                                                          
Amount $1,000 maximum credit
Required Documentation Receipt of cost
Official Web Site http://www.azdor.gov/Portals/0/Brochure/543.pdf

 

Residents in Arizona are eligible to claim a personal income tax credit for up to 25 percent of the cost of various types of solar (including photovoltaics, water heating and more) and wind equipment and installation. However, the homeowner can only claim up to $1,000 annually. But the credit also can be claimed until it reaches the 25 percent threshold or up to five years after the first year’s claim.

 

Equipment covered under the program include solar water heaters, daylighting, ovens or other solar energy devices. The state requires residents obtain a certificate from the seller of the equipment stating that the equipment complies with Arizona’s solar energy equipment requirements.

Energy Equipment Property Tax Exemption

Program Type Property tax exemption
Technologies

Solar: Photovoltaics, passive solar space heat, solar hot water, solar space heat, solar thermal electric, solar thermal process heat, solar cooling, solar pool heating, daylighting. Landfill gas, wind, biomass, geothermal electric, geothermal heat pumps, CHP/cogeneration, anaerobic digestion, small hydroelectric.

Amount Exempts any increased value of the property due to installation of energy equipment
Required Documentation Documentation of purchase and installation of equipment
Official Web Site http://www.revenue.state.az.us/

 

Arizona does not consider renewable energy generating devices to add value to property—which means consumers don’t get taxed on the value added to the property by the energy installation.

 

Under Arizona’s law, both “active” and “passive” systems are eligible for the credit. 

The exemption was created under state law HB-2429 and expanded by HB-2332 defines “energy equipment” as equipment that harness energy equipment to produce energy primarily for on-site consumption from renewable resources, including wind, forest thinning, agricultural waste, biogas, biomass, geothermal, and low-impact hydropower. It also includes high performance building components in buildings or building components that meet or exceed the energy efficiencies of programs including Energy Star or LEED. 

 

To qualify for the exemption, property owners need to provide their county assessor with documentation of the purchase and installation of the equipment within six months. There’s no limit on this exemption—consumers can install as much qualifying equipment as they want, property tax-free.

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Arizona Utility Incentive Programs

Program Type Utility rebate
Technologies

Residential solar hot water heating

Amount

Residential Solar Water Heating: $0.30/kWh-displaced
Commercial Solar Water Heating (Small Systems): $0.30/kWh savings based on an OG-300 rating
Commercial Solar Water Heating (Large Systems): $0.30/kWh savings based on an OG-100 rating, and verified by an Energy Savings and Designed Output (ES&D) report

Required Documentation Forms as required by APS
Official Web Sites

 

 

http://www.aps.com/en/globalservices/installers/Pages/renewables-forms-and-resources.aspx

 

Arizona Public Services and smaller utilities in the state used to offer aggressive rebates to customers who installed solar panels at their homes and businesses. In 2013, utilities started scaling back on rebate programs.

The reductions resulted from falling system prices that reduced the need for rebates to make solar installation affordable. It was also a pushback from utilities that started to fear solar would grow to the point it would threaten the utility business model.

Today, APS only offers a rebate for solar hot water heating.

Residential systems: $50,000 or 50% of system costs, whichever is less
Commercial systems: $75,000 or 40% of system costs, whichever is less

Sulphur Springs Valley EC – Energy Efficiency Loan

Program Type Utility loan
Technologies Energy-efficient upgrades to residential and multi-family properties
Amount $2,000-$20,000
Required Documentation Utility application
Official Web Site http://www.azcommerce.com/Energy/Energy-Related+Incentives.htm                                                                             

While these utility loans don’t cover the installation of solar equipment, they can help homeowners make their properties more efficient so that new solar installations will make a bigger impact on their energy bills.

Sulphur Springs Valley EC will loan up to $20,000 at 0% interest for building envelope improvements designed to make spaces more energy efficient – up to $10,000 for single-family residences.

In addition the utility loans up to $10,000 at 7% interest for new heat pumps in residential and multi-family properties.

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