Incentives available for residential photovoltaic systems installed in 2013 can cover over 40% of system costs, significantly reducing the payback period.
Federal Tax Credit
The federal solar tax credit is a 30% credit off income taxes and can be carried over year to year until 2016. For customers who lease their system, the federal tax credit is taken by the leasing company.
US Tax Code
IRS form 5695 (information about residential PV on pages 3 & 4)
State Tax Credit
The Arizona state income tax credit is 25% and is capped at $1,000 per residence. The unused portion of the tax credit may be carried forward for up to five years. This credit must be shared with other qualifying solar devices. There is also a sales tax waiver for photovoltaic systems, so you pay no state sales tax on your system.
State Property Tax Increase Exemption
State HOA Law
In Tucson, our utility companies (TEP, TRICO, SSVEC) offer NET metering for solar electric systems. This means that any 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 2 – 5 cents/KWH.
For a description of how it works, see: http://tfssolar.com/2619/what-exactly-is-net-metering/