Residential Incentives

What are the incentives for installing a solar energy system in my home?
 

Financial payback

The payback period for solar hot water systems are an average of 5 - 6 years.

The payback period for PV solar electricity is about 10-15 years. 
 

Tax credits

State: Solar Tax credit for 25 percent of the cost of an approved solar device or system. The maximum allowable credit is $1,000 to be carried forward up to five years.

Qualifying Items: Solar water heating, solar pool heating, photovoltaic systems, water pumping, and solar lighting systems.

2009 Arizona Tax Credit Form 310; Form 310 Instructions

Federal: The Federal Tax Credit is 30 percent. This amount is deducted after all other incentives have been applied.

Qualifying items: Solar water heating and photovoltaic systems. Solar pool heating systems are excluded.

2009 Federal Tax Credit Form 5695 

Utility rebates

Most utilities provide cash rebates for the installation of solar hot water systems. Rebates vary by utility and system installed.
 

TEP >>	TRICO >>	APS >>
SSVEC >>	SRP >>	Southwest Gas

All Arizona Residential Incentives can be found at DSIRE.org >>

For Example: For the purchase of a qualified active solar hot water system at a price of $5,900, you will receive an average utility rebate of $1,500, state credit of $1,000 plus a federal tax credit of $1,700. A solar pool heating system costing $4,000, qualifies for the state tax credit only, in the amount of $1,000. Please consult your tax professional for specifics.