Residential Rebates and Incentives
TEP Residential Solar Electric Systems (Photovoltaic)
TEP is offering incentive payments for residential photovoltaic (PV) systems to encourage the installation of solar power. To qualify in this category, systems can be up to 20 kilowatts AC (kWac). Up-Front Incentive (UFI) or Performance-Based Incentive (PBI) are available for both grid-tied and off-grid systems up to 20 kWac.
Learn more: www.tep.com/Green/Home/Solar/electric.asp
TEP Solar Hot Water/Space Heating
Tucson Electric Power (TEP) is offering incentive payments for residential solar hot water and space heating systems to encourage the installation of solar power. Solar hot water and/or space heating systems are best suited in areas that receive a relatively high amount of annual sunshine.
Learn more: www.tep.com/Green/Home/Solar/spaceheating.asp
TRICO and SSVEC rebate
TRICO offers rebates of $3/watt up to 40% of the total system cost. Pending approval by the Arizona Corporation Commission, rebate applications for photovolatic systems up to 10kW in size received after July 15, 2010, will be subject to a reduced incentive of $1.50 per installed Watt up to 30% of the total cost of the system.
Sulphur Springs Valley Electric Coop offers rebates for systems 10kW or less and/or that cost less than $75,000, SSVEC will pay a rebate at $3.00 per watt up to 50% of the system cost. (This is subject to the rebate funds being available and your position on the rebate reservation list.) Your new option is to receive a Performance Based Incentive (PBI) in which you collect funds based on how many kWh your system produces. The PBI ranges from $0.18 to $0.202 per kWh depending on the length of the PBI agreement (10-20 years). The PBI will show up as a credit on your electric bill each month. Using the PBI option you can receive up to 60% of the cost of your system from the SunWatts program.
Learn more: www.trico.coop or www.ssvec.org
Federal Tax Credit
The federal solar tax credit is a 30% credit off income taxes and can be carried over multiple years.
Learn more: www.dsireusa.org
State Tax Credit
The Arizona state income tax credit is 25% and is capped at $1,000. This credit must be shared with other qualifying solar devices. There is also a sales tax waiver for photovoltaic systems, so you pay no state sales tax on your system.
Learn more: www.dsireusa.org
State Property Tax Increase Exemption
Arizona state law dictates that your property taxes will not increase as a result of installing a photovoltaic system.
Learn more: www.dsireusa.org
State HOA Law
Arizona State law A.R.S. § 33-439 protects private property solar access by nullifying Home Owners Association covenants restricting solar energy systems.
Learn more: www.dsireusa.org
City of Tucson
There is a permit fee waiver from City of Tucson up to $1,000. This applies when solar is included in the plans for a new building or addition.