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Solar Tax Credits, Incentives and Solar Rebates in Arizona
Latest Update:by Simone Garneau
|Solar Value Index||$1,064|
|Solar Energy Produced||8,766 kWh / year|
|Average retail electricity price (as of February 2017)||12.14 cents / kWh|
|Average annual consumption per household (2015 data)||12,333 kWh|
|Levelized Cost of Solar Electricity||5.93 cents / kWh|
|Reached grid parity?||Yes|
|Solar Installer||City||Sunmetrix Solar Score||Sunmetrix Cashback|
|Plus Electric (DGB Enterprises Inc.)||Casa Grande||$200|
|Donley Service Center||Phoenix||$0|
The Grand Canyon State runs primarily on coal, natural gas and nuclear energy. Arizona boasts the largest nuclear power plant in the United States: the Palo Verde Nuclear Generating Station (with nearly 4,000 MW generation capacity). The state has a leading role in solar energy potential as well, with one of the highest solar insolation levels in the nation.
At 12.14 cents/ kWh, the electricity prices in the state are below the national average of 12.62 cents / kWh. When it comes to average electricity consumption per household, residents of this state consume 12,333 kWh per year, above the national average of 10,836 kWh.
Currently, Arizona has 16 financial incentive programs and 19 regulatory programs supporting the adoption of solar energy. Arizona also has a state income tax credit equal to 25% of the cost of your solar panel installation that can reduce your tax liability if you invest in solar energy for your home or business. This tax credit is capped at $1,000 but the good news is that it can be combined with the 30% federal solar tax credit.
Arizona is a grid parity state, making solar power cheaper than the residential utility rates. Especially when used in combination with the 30% federal solar tax credit, the incentives listed below can significantly reduce the cost of installation of solar panels for your home or business.
- City of Scottsdale - Green Building Incentives
- Duncan Valley Electric Cooperative - SunWatts Rebate Program
- Energy Equipment Property Tax Exemption
- Mohave Electric Cooperative - Renewable Energy Incentive Program
- Non-Residential Solar & Wind Tax Credit (Corporate)
- Non-Residential Solar & Wind Tax Credit (Personal)
- Property Tax Assessment for Renewable Energy Equipment
- Renewable Energy Business Tax Incentives
- Renewable Energy Production Tax Credit (Corporate)
- Renewable Energy Production Tax Credit (Personal)
- Renewable Energy Tax Credit for Manufacturers (Corporate)
- Renewable Energy Tax Credit for Manufacturers (Personal)
- Residential Solar and Wind Energy Systems Tax Credit
- Solar and Wind Equipment Sales Tax Exemption
- Sulphur Springs Valley EC - SunWatts Rebate Program
- Town of Buckeye - Green Building Incentive
- City of Chandler - Green Building Requirement for City Buildings
- City of Phoenix - Renewable Energy Goal
- City of Scottsdale - Green Building Policy for Public Buildings
- City of Tucson - Solar Design Requirement for Homes
- Energy Efficiency Standards for State Buildings
- Interconnection Guidelines
- Maricopa Assn. of Governments - PV and Solar Domestic Water Heating Permitting Standards
- Maricopa County - Renewable Energy Systems Zoning Ordinance
- Net Metering
- Phoenix City - Municipal Code 232 Residential Solar PV System Permit
- Pima County - Solar & Wind Permitting Requirements
- Renewable Energy Standard
- Solar & Wind Equipment Certification
- Solar Construction Permitting Standards
- Solar Contractor Licensing
- Solar Design Standards for State Buildings
- Solar Rights
- SRP - Net Metering
- Tucson City - Solar Farm Permit Requirements
- Average electricity consumption data is from the U.S. Energy Information Administration.
- Average retail electricity price is from the Electric Power Monthly report of the U.S. Energy Information Administration.
- Solar Value Index is based on the analysis performed using our own solar energy calculator, Sunmetrix Discover.
- State incentives list is compiled from the Database of State Incentives for Renewables and Efficiency maintained by the N.C. State University.
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1. Defined Terms.
a. Program Website: http://sunmetrix.com/
b. INSTALLER: The solar PV installation company either selected by the QUOTE-REQUESTER or by Sunmetrix.
c. QUOTE-REQUESTER is a potential residential solar customer that meets all of the following criteria: (1) owns his or her own house in a state/province where the INSTALLER operates; (2) is a legal resident of the United States or Canada; (3) is 18 years of age or older; and (4) otherwise meets Sunmetrix’s requirements, as may be updated by Sunmetrix from time to time.
d. REFERRAL FEE: The amount the INSTALLER agrees to pay Sunmetrix upon completion of the residential INSTALLATION. For U.S. companies, the indicated amount is in U.S. dollars. For Canadian companies, the indicated amount is in Canadian dollars. In the case of commercial solar quote requests, the referral fee is determined on case by case basis.
e. CASH-BACK: The amount paid to the QUOTE-REQUESTER, representing 50% of the REFERRAL FEE paid upon completion of the residential solar photo-voltaic INSTALLATION. For U.S. residents, the indicated CASH-BACK amount is in U.S. dollars, and the CASH-BACK will be sent electronically either with a PayPal Payment or with an Amazon eGift Card. For Canadian residents, the indicated CASH-BACK amount is in Canadian dollars, and the CASH-BACK will be sent electronically with an Interac e-Transfer.
f. INSTALLATION: The solar photo-voltaic INSTALLATION is for a residential system with a minimum installed capacity of 2 kW DC. Systems that are less than the minimum will not qualify for the CASH-BACK program.