Incentives

Arizona Public Service – Solar Partner® Incentive Program
Applies To: Residential and Commercial customers of APS.
System Type: All photovoltaic systems
Residential: $3.00 per Watt-DC for grid-tied systems
Commercial: $2.50 per Watt-DC for grid-tied systems up 30kW. Larger system qualify for
Production Based Incentives (PBI).

Salt River Project - EarthWise Solar Energy Program
Applies To: Residential and Commercial customers of SRP.
System Type: All photovoltaic systems
Residential: $3.00 per Watt-DC for grid-tied systems up to 20kW
Commercial: $3.00 per Watt-DC for grid-tied systems up to 20kW. $2.50 for over 20kW.

APS and SRP customers can receive a rebate of $3.00 ($2.50 commercial) for each watt of rated solar power (DC watts) installed in a grid-tied application. You must be an existing APS or SRP customer, or your property must be located in APS or SRP service territory. A licensed solar-electrical contractor must install the system in order to qualify for the incentive. APS payment can be made directly to the installer once the application has been processed and approved, reducing your out-of-pocket expense. A funding reservation process is in place on a first-come first-served basis to guarantee funds for those customers pursuing projects in 2008.

Federal and State Rebates
Commercial and residential taxpayers can receive a Federal tax credit of 30% of the cost for purchasing and installing a photovoltaic system. For residential systems, the Federal tax credit is limited to a maximum of $2,000. (See page 4 of IRS Publication 553, and IRS Form 5695 for details.) The credit is applied directly to your Federal tax as opposed to simply being tax-deductible. Commercial applications are not limited to the $2,000 maximum. (See page 17 of IRS Publication 553, and IRS Form 3468 for details.) Unused credit may be carried forward for five consecutive taxable years.

Arizona businesses can take a direct credit to their Arizona state taxes of 10% of the cost of purchasing and installing a photovoltaic system. The maximum is $25,000 for any one building in the same year and $50,000 in total credits. The tax credit may be carried forward for five consecutive taxable years. (See AZ Form 336 for details.) Businesses must submit solar application and solar completion reports to take this tax credit.

Arizona residents can take a direct credit to their Arizona state taxes of 25% of the cost of purchasing and installing a photovoltaic system. The maximum tax credit per residence is $1,000 and may be carried forward for five years. (See AZ Form 310 for details.)

California businesses and residents can take advantage of the Emerging Renewables Rebate Program and other incentives, including low interest loans (for schools and hospitals), loan tax deductions, and utility rebates. For more information, see CA State Incentives.