Arizona Rebates, Tax Credits and Incentives

Federal, state and local rebates, tax credits, and other incentives make renewable energy and energy efficiency more affordable than ever.

Phoenix Home

Arizona Rebates, Tax Credits and Incentives

Renewable energy and energy efficiency solutions are now more affordable than ever thanks to the abundance of available rebates and incentives.

View the Residential, Commercial, or Builder incentives that may be available for you, or to learn more about how you can take advantage of these great incentives, call the SRE Energy Experts at (602) 325-8379.

Residential

Solar Electric (PV), Solar Water Heating (Thermal) and Wind Energy

Federal Income Tax Credit

A federal income tax credit of 30% of the system cost is available for solar electric (PV) systems, solar water heating (thermal) and wind energy systems.

Arizona State Income Tax Credit

A state income tax credit of 25% of the system cost (up to $1,000) is available for solar electric (PV) systems, solar water heating (thermal) and wind energy systems.

Arizona Property Tax Exemption

The Arizona property tax code exempts from taxation the amount of the appraised property value that arises from the installation of a solar electric, solar water heating, or wind energy system.


Solar Electric (PV) Systems Utility Rebates

Arizona Public Service (APS)

Contact us for updated information on the APS solar electric (PV) system rebates.

Salt River Project

Salt River Project (SRP) provides their customers up to $2.15 per installed watt (up to $10,750) through their SRP EarthWise Solar Energy program.

Tucson Electric Power Company & Unisource Energy

Tucson Electric Power Company (TEP) and Unisource Energy (UES) provide up to $3.00 per DC watt for grid-tied customers and $2.00 per DC watt for off-grid residences in their service areas (on systems up to 20 kilowatt AC) through their SunShare Programs.

Additionally, TEP and UES customers can opt to receive a 10, 15, or 20 year Production Based Incentive (PBI).

Please contact us for a quote for your home.


Solar Water Heating (Thermal) Systems Utility Rebates

Arizona Public Service

Arizona Public Service (APS) provides their customers an incentive equal to $0.75 per installed kilowatt hour of energy savings in the first year (up to 50% of the system’s cost) for a solar water heating system.

Salt River Project

Salt River Project (SRP) provides their customers an incentive of $0.50 per installed kilowatt-hour of energy savings for a solar water heating system.

Tucson Electric Power Company & Unisource Energy

Tucson Electric Power Company (TEP) and Unisource Energy (UES) provide an incentive of $750 plus $0.25 per installed kilowatt-hour of energy savings (up to $1,750) for a solar water heating system.

Additionally, TEP and UES residential customers can opt to receive a 10, 15, or 20 year Production Based Incentive (PBI).

Please contact us for a quote for your home.


Wind Energy Systems Utility Rebates

Tucson Electric Power Company & Unisource Energy

Tucson Electric Power Company (TEP) and Unisource Energy (UES) provide an incentive of $2.50 per installed AC watt for grid-tied and off-grid wind energy systems installed in their service territory (up to 1,000 kW).

Customers may opt to receive a 10, 15, or 20 year Production Based Incentive (PBI).

Please contact us for a quote for your home.


Energy Efficiency – Air Conditioning, Heating, Insulation, and Other Energy Efficiency Improvements

Federal Income Tax Credit

A federal income tax credit of up to $1500 is available for qualified home energy efficiency improvements such as insulation, high-efficiency air conditioning systems, high-efficiency heat pumps and more.

Arizona Public Service

Arizona Public Service (APS) customers are eligible for rebates of up to $400 for installing a new high efficiency air conditioning unit or heat pump (minimum of 14 SEER / 11.5 EER).

Tucson Electric Power Company & Unisource Energy

Tucson Electric Power Company (TEP) and Unisource Energy (UES) customers are eligible for rebates of up to $250 for installing a new high efficiency air conditioning unit or heat pump (minimum of 14 SEER).

To learn more about qualifying for these rebates, please contact us.

Commercial

Solar Electric (PV), Solar Water Heating (Thermal) and Wind Energy

Treasury Grant

Commercial projects may opt to apply for a Treasury Energy Grant in lieu of the investment tax credit (ITC). This applies to equipment placed in service by December 31, 2010 or construction has begun by December 31, 2010 and is completed by December 31, 2013. The grant is paid out by the Treasury within 60 days of the project completion and application is filed.

Federal 5 Year Accelerated Depreciation Schedule

Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover the cost of a solar electric, solar water heating, or wind energy system on an accelerated 5-year schedule. In 2008 and 2009 the above investments qualify for the 50% Bonus Depreciation schedule. The owner is entitled to deduct 50% of the adjusted basis of the property in the first year of operation. The remaining 50% of the adjusted basis of the property is depreciated over the ordinary depreciation schedule. The Depreciation Basis is calculated as the System Installation Price – (1/2) Federal Investment Tax Credit.

Federal Income Tax Credit

A federal income tax credit of 30% of the system cost is available for solar electric (PV) systems, solar water heating (thermal) and wind energy systems.

Arizona State Income Tax Credit

A state income tax credit of 10% of the system cost (up to $25,000 for one building and up to $50,000 in total credits in a single year) is available for solar electric (PV) systems, solar water heating (thermal) and wind energy systems.

Arizona Property Tax Exemption

The Arizona property tax code exempts from taxation the amount of the appraised property value that arises from the installation of a solar electric, solar water heating, or wind energy system.

Please contact us for a quote for your business.


Solar Electric (PV) Systems Utility Rebates

Arizona Public Service (APS)

Contact us for updated information on the APS solar electric (PV) system rebates and incentives.

Salt River Project

For solar electric systems smaller than 20 kW, Salt River Project (SRP) provides their customers up to $2.70 per installed watt (up to $13,500) through their SRP EarthWise Solar Energy program.

For solar electric systems greater than 20 kW, Salt River Project (SRP) provides their customers up to $2.25 per installed watt (up to $450,000) through their SRP EarthWise Solar Energy program.

Tucson Electric Power Company & Unisource Energy

Tucson Electric Power Company (TEP) and Unisource Energy (UES) provide up to $2.50 per DC watt for grid-tied customers (on systems up to 20 kilowatt) through their SunShare Programs.

Additionally, TEP and UES grid-tied and off-grid customers can opt to receive a 10, 15, or 20 year Production Based Incentive (PBI).


Solar Water Heating (Thermal) Systems Utility Rebates

Arizona Public Service

Arizona Public Service (APS) provides their customers an incentive equal to $0.75 per installed kilowatt hour of energy savings in the first year (up to 50% of the system’s cost) for a solar water heating system.

Additionally, APS commercial customers can opt to receive a 10, 15, or 20 year Production Based Incentive (PBI).

Salt River Project

Salt River Project (SRP) provides their customers an incentive of $0.50 per installed kilowatt-hour of energy savings (up to $500,000 or 60% of total system cost) for a solar water heating system.

Tucson Electric Power Company & Unisource Energy

Tucson Electric Power Company (TEP) & Unisource Energy (UES) provide a 10, 15, or 20 year Production Based Incentive (PBI) for commercial solar water heating system installations.

  • 10-Year:  $0.129 per kilowatt-hour
  • 15-Year:  $0.120 per kilowatt-hour
  • 20-Year:  $0.115 per kilowatt-hour

Please contact us for a quote for your business.


Wind Energy Systems

Tucson Electric Power Company & Unisource Energy

Tucson Electric Power Company (TEP) & Unisource Energy (UES) provide an incentive of $2.50 per installed AC watt for grid-tied and off-grid wind energy systems installed in their service territory (up to 1,000 kW).

Customers may opt to receive a 10, 15, or 20 year Production Based Incentive (PBI).

Please contact us for a quote for your business.


Energy Efficiency

Arizona Public Service

APS small business customers are eligible for rebates on energy-efficient lighting. Rebate amounts range from $1.75 to $75 per unit.

APS large business customers can choose from a prescriptive list of typical energy efficiency rebates with fixed rebates levels, including high-efficiency lighting, heating and cooling system upgrades and more. For upgrades not on the prescriptive list, businesses may qualify for a custom incentive (funded at $.11/annual kWh of savings). To find out if your business is eligible, please contact us.

Salt River Project

The SRP PowerWise Standard Business Solutions rebates provides incentives for installation of high-efficiency lighting, heating, ventilation, and air conditioning (HVAC) equipment, motors, and/or variable frequency drives (VFDs) (up to $75,000 per year). Rebates for energy efficiency measures vary

To find out if your business is eligible, please contact us.

Tucson Electric Power Company & Unisource Energy

TEP and UES small and large business customers are eligible for rebates on energy-efficient lighting, air conditioners, heat pumps and more. Rebates for energy efficiency measures vary.

To find out if your business is eligible, please contact us.

Builders

Energy Efficiency

Federal Tax Credit – Energy Efficient Homes

Tax credits of up to $2,000 are available to builders for construction of new energy-efficient homes.

Homes qualify for a $2,000 credit if they are certified to reduce energy consumption by 50% relative to the International Energy Conservation Code (IECC) standard and meet minimum efficiency standards established by the Department of Energy.

Building envelope component improvements must account for at least 20% of the reduction in energy consumption, but specific energy efficiency measures are not restricted.

Tucson Electric Power Company & Unisource Energy

TEP and UES offers rebates for integrating energy efficient measures into the construction of a building.  The building's energy efficiency will be modeled against industry-based standards to determine projected energy savings. Rebate amounts will be based on the estimated energy savings over a one year period.

The statements contained herein are not intended to and do not constitute an opinion as to any tax or other matter, and may not represent all potential incentives available to you. You should consult your tax advisor with respect to any taxes or incentives that you may qualify for.