Residential Incentives
Incentives available for residential photovoltaic systems installed in 2008 can cover over 60% of system costs, significantly reducing the payback period.
TEP Rebate
Tucson Electric Power offers a rebate on photovoltaic systems. This rebate is currently $3/watt for grid-tie systems. Off-grid customers receive a rebate of $2/watt, capped at $4,000. See more here: www.greenwatts.com.
Please note: this credit can be assigned to TFS as the last payment, or can be sent to the system owner.
TEP also offers net metering, which credits the customer for excess energy sent back to the utility grid. For their description of how it works, see: www.greenwatts.com.
TRICO and SSVEC rebate
Both TRICO and SSVEC offer rebates of $3/watt up to 40% of the total system cost. More information can be found at www.trico.coop or www.ssvec.org. Currently both utilities have exhausted their funds for 2010. Customers may still choose to install a system, but the utility rebate will be delayed by 1- 3 years.
Federal Tax Credit
The federal solar tax credit is a 30% credit off income taxes and can be carried over multiple years.
www.dsireusa.org
US Tax Code
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.
www.dsireusa.org
State Q&A
State form
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 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.