Commercial Incentives
Incentives available for commercial solar in 2010 can cover over 80% of system costs, reducing the payback period to less than 10 years.
TEP Rebate
TEP offers a rebate on photovoltaic systems. This rebate is $2.50/watt for systems up to 100 kWAC. Systems larger than 100 kWAC are not eligible for the up front incentive. Instead, there is a performance based incentive payment that can be received over 10, 15, or 20 years. www.greenwatts.com
TEP offers net metering for solar electric systems. This means that each KWH is credited at your retail rate up to your annual usage. Once a year, your solar electric system’s excess production is purchased by TEP at the wholesale cost, generally 3 – 4 cents/KWH. For an explanation of their net metering system see www.greenwatts.com.
Federal Tax Credit
The federal solar tax credit is 30% of the system cost off your annual taxes. There is no cap for businesses; although, the entire credit cannot be taken in the first year under certain circumstances. 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 2010.
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.
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
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.
Depreciation
Photovoltaic systems can be depreciated in one to five years. The tax basis for depreciation excludes TEP rebates and 50% of state and federal tax credits.
1603 Program: Payments for Specified Energy Property In Lieu of Tax Credits
Created under Section 1603 of the Recovery Act, the program provides cash assistance to energy producers in place of tax credits. Under this program, the federal government provides a cash payment in lieu of a tax credit totaling 30 percent of the qualifying cost of the project. Visit the U.S. Dept of the Treasury to apply.