Incentives available for commercial solar in 2012 can cover over 80% of system costs, reducing the payback period to less than 10 years.

TEP Incentive

TEP offers an incentive on photovoltaic systems. This rebate is $0.55/watt for systems up to 71 kW DC, capped at 40% of the total system cost.  Systems larger than 71 kW DC are eligible for a performance based incentive (PBI) that is paid out over 10-20 years, capped at 40% of the total system cost. The PBI is paid quartarly at a rate of $0.072/kwh produced.  For more information, visit  www.greenwatts.com.

Federal Tax Credit

The federal solar tax credit is 30% of the total system cost. There is no cap on this tax credit and it can be carried forward until 2016 if needed. The credit expires for systems installed after December 31, 2016.
www.dsireusa.org
US Tax Code

The federal government also is offering treasury grants through 2011.

State Tax Credit

The Arizona state tax credit is 10% of the system cost and is capped at $25,000 per location, $50,000 per business.

The income tax credit for installing commercial and industrial applications of solar energy devices is extended six years to the tax year ending Dec. 31, 2018. (The summary of legislation for this extension can be found in HB 2700 – Chapter 294 – solar energy tax incentives; extension. Click here for the summary of legislation.)
www.azcommerce.com
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.
AZ property tax law see 42-11054.C.2
www.dsireusa.org

Depreciation

Photovoltaic systems can be depreciated in five years under MACRS rules, or in 1 year under Section 179 rules. The tax basis for depreciation is effectively equal to the total system cost less TEP rebates and 50% of state and federal tax credits.

NET Metering

TEP offers NET metering for solar electric systems. This means that excess kWh production is carried over for use during following months at a retail rate.  Once a year, during the October billing cycle, any excess production that has not been used is purchased by TEP at the wholesale cost, generally 3 – 4 cents/kWh.

For a description of how it works, see: http://www.tfssolar.com/2619/what-exactly-is-net-metering/

Portfolio
Benefits
How it Works
What Size System?
How to Proceed
Performance
Products & Affiliations