Solar Hot Water Incentives
Incentives available for residential solar hot water systems installed in 2010 can cover over 70% of system costs, significantly improving the return on investment.
Federal Tax Credit
The federal solar tax credit is a 30% credit off income taxes. There is a $2,000 cap for residential systems. The credit is currently set to expire December 31, 2016. This credit can be taken in addition to the federal tax credit for photovoltaic systems.
www.dsireusa.org
State Tax Credit
The Arizona state income tax credit is 25% and is capped at $1,000. This credit must be shared with other qualifying solar devices (it has a one time per residence limit). There is also a sales tax waiver for solar hot water systems, so you pay no state sales tax on your system.
www.dsireusa.org
www.revenue.state.az.us
TEP Rebate
Tucson Electric Power offers rebates for solar hot water systems beginning June 1, 2008. The residential rebate offers $750 plus $0.25/kWh (annual rating) up to $1750 for SRCC OG-300 rated systems. Commercial systems up to 35000 kWh/yr (about 10 collectors) are elegible for $750 plus $0.5/kWh annual rating up to $17,500. Systems above 35,000 kWh/yr are elegible for a performance based incentive. A list of SRCC rated systems along with their Tucson-specific output can be found at www.solar-rating.org. The rebate will cover a maximum of 85% of system cost, including the state and federal tax credits.
www.greenwatts.com
TRICO Rebate
TRICO offers rebates for solar water heating systems. The rebate is $.75/kWh based on the SRCC rating. www.trico.coop
State Property Tax Increase Exemption
Arizona state law dictates that your property taxes will not increase as a result of installing a solar hot water system.
AZ state property tax law, see 42-11054.C.2
www.dsireusa.org
State HOA Law
Arizona state law A.R.S. § 33-439 protects private property solar access by nullifying Home Owners Association covenants restricting solar energy systems. See DSIRE website.
City of Tucson
There is a permit fee waiver from City of Tucson up to $1,000. This applies when solar is included in the plans for a new building or addition.