Arizona Solar Rebates

PV incentives may be de-rated based on expected performance
Grid-tied residential PV: $3/watt DC
Off-grid Residential (less than 5 kW): $2/watt DC;
Grid-tied non-residential PV: $2.50/watt DC or production-based incentive (PBI)
Off-grid non-residential PV: $1.50/W DC or PBI
Residential/small solar water heating: $0.75/kWh of estimated first-year savings
Commercial/large solar water heating and solar HVAC systems: production based incentive
Solar Daylighting: $0.20/kWh estimated first year savings

PV: 50% of project costs. Up-front incentive payment is limited to $75,000

No size restrictions for grid-connected systems specified; Less than 5 kW for off-grid systems.

SWH systems must be certified to SRCC OG-300 standards

PV systems must be installed by a licensed contractor holding one or more of the following certifications with the Arizona Registrar of Contractors: C-11, K-11, L-11.

Through the Renewable Incentive Program, Arizona Public Service (APS) offers customers who install various renewable energy sources the opportunity to sell the credits associated with the energy generated to APS. Previously, APS only provided incentives for solar technologies, but they expanded the list of qualified renewable in 2008 to include all technologies eligible for Arizona's Renewable Energy Standard (RES). The solar technologies eligible for a rebate include photovoltaic (PV), solar hot water, solar HVAC and solar daylighting systems. Up-front incentives for PV may be de-rated based on expected performance. Renewable energy systems are eligible for the following credit amounts:
• Grid-tied residential PV: $3/watt DC, adjusted based on expected performance; No system size limit.
• Grid-tied non-residential PV: $2.50/watt DC; or commercial customers may opt for a production-based incentive (PBI) on a 10-, 15- or 20-year contract.
• Off-grid residential PV: $2/watt DC; System must be less than 5 kW.
• Off-grid non-residential PV: $1.50/W or PBI
• Solar hot water systems (residential and non-residential): Rebate amounts for small systems are based upon an estimate of first-year energy savings at $0.75/kWh based on OG-300 ratings, up to 50% of the system's cost. The incentive structure for large SWH systems is based on actual performance, and can range between $0.051/kWh-equivalent and $0.07/kWh-equivalent depending on the length of the contract. Incentives are limited to 50% of total system cost.
• Solar HVAC systems (non-residential only):The incentive for the thermal energy delivered for cooling by a solar HVAC system is based on actual performance and ranges between $0.12/kWh-equivalent and $0.16.kWh equivalent. In addition, systems that incorporate solar thermal heating and/or solar thermal water heating are eligible for the large solar water heating PBI.
• Solar Daylighting (non-residential only): $0.20/kWh anticipated first year savings.
• Other solar technologies (non-residential only): PBI amount varies by contract length and technology.
• Grid-tied wind systems (residential and non-residential):$2.50/W up to 50% of the system cost or $75,000; non-residential systems may opt for the PBI
• Off-grid wind systems (residential and non-residential):$2.00/W up to 50% of the system cost or $75,000; non-residential systems may opt for the PBI
• Other renewables installed by non-residential customers can apply to receive a PBI. APS will evaluate the project to determine if it is able to qualify renewable energy incentives.
Funds are assigned through a reservation process. All necessary forms can be downloaded from the program website.

APS is purchasing solar credits and renewable energy certificates to help the company meet the state's Renewable Energy Standard (RES). Participating customers receive a one-time rebate or receive an incentive based on system output or kWh savings. APS will have access to the credits for the life of the RES program.

Arizona Residential Solar and Wind Energy Systems Tax Credit