Arizona is within the country’s Sunbelt, making this Grand Canyon State an ideal region for solar power system installations. That said, some of the top solar farms in the world are being constructed in Arizona. The state’s renewable energy portfolio standard requires all utility providers to acquire 15% of their electric power from renewable sources of energy by 2025. Of that, 30% of the power must come from a distributed generation like businesses and homes.
As such, the utility providers and state government have various programs that offer Arizona solar incentives and rebates for solar energy system installations on people’s businesses and homes. These include the net-metering system and rebates through various utility providers. There are also other Arizona incentives from the state government and municipalities. This article focuses on the top Arizona solar incentives and rebates for both residential and commercial solar panel installations.
Arizona Solar Incentives
Most states across the country offer solar energy rebates for the residential solar energy system, and the good news is that Arizona is one of those states. Some of the top Arizona solar incentives include;
1. Green Building Policy – City of Scottsdale
In 2005, Scottsdale implemented a Green Building Policy for the new city remodels and buildings. This new policy required all occupied and new city buildings of any size to be redesigned, contracted, and build to achieve the ‘Gold’ level of certification by the United States Green Building Council’s Leadership in Energy & Environmental Design program. In addition, there’s a payback period of five years or less for the specific projects redesigned in accordance with the Gold Standard.
The primary goal of this program is to encourage a whole-systems approach through the overall design and building techniques to reduce overall environmental impact. It also aims to reduce the energy consumption of buildings in the city. Note that part of green building includes installation of renewable sources of energy like solar panels.
2. SunWatts Rebates Program – Duncan Valley Electric Cooperative
The Duncan Valley Electric Cooperative offers rebates for all purchases of renewable energy systems via its SunWatts rebate program. PV and wind energy systems of 10 kW or less get an upfront rebate of $0.05/watt (maximum $500). Also, solar power water heating systems can get a rebate of about $0.50/kWh) of estimated energy saving within the first 12 months.
3. Energy Equipment Property Tax Exemption
Established in June 2006, this incentive program originally applied to solar power devices and other systems or devices designed specifically to produce solar power for on-site usage. For property tax assessment purposes, such devices are widely considered to add no value to properties.
However, H.B232 (signed in July 2009) expanded this incentive program to include renewable technologies, combined heating & power systems, and energy-efficient property components. To qualify for Energy Equipment Property Tax Exemption, you must provide your county assessor with sufficient documentation affirming the actual system purchase and installation.
In addition, the documents must clearly show all costs of the eligible pieces of equipment. You must submit these documents six months or less before the issuance of the notice of full cash value for the initial valuation year.
4. Renewable Energy Incentive Program – Mohave Electric Cooperative
Mohave Electric Cooperative offers incentives for its clients to install renewable energy systems on their commercial and residential properties. Note that rebates for solar energy water heating are available for residential systems only. Clients must meet all the applicable terms and submit the right forms listed on the Mohave Electric Cooperative’s official website.
5. Heat Pump Rebate Program – Mohave Electric Cooperative
Mohave Electric Cooperative serves the communities of Mohave Valley, Bullhead City, Hackberry, Fort Mohave, Peach Springs, and Wikieup. This non-profit organization offers rebates for energy-efficient heat pump installations. These installations must meet the program’s requirements.
Mohave Electric Cooperative also offers discounts (periodic) on shade trees to utility clients. Shade trees planted on the sunny side of a property can contribute to exterior wall temperature drop, saving cash on indoor cooling.
6. Non-Residential Solar and Wind Tax Credit – for corporates
This Arizona’s tax credit for solar installations in industrial and commercial applications was established in 2006 June. It is available to non-residential entities who plan to install qualified solar and wind systems on their facilities or specific entities that manufacture, finance, or install qualified systems. Non-Residential Solar and Wind Tax Credit is a transferee of tax credits secured by the buyer of the device.
Tax-exempt entities are eligible for this credit if they’re subject to tax on UBTI (Unrelated Business Taxable Income) if the relevant tax credits are linked to activities that generate such income. Non-Residential Solar and Wind Tax Credit are equal to 10 percent of the installed cost of qualified solar systems and devices. And it applies to solar systems installed from 2006 Jan 1st.
Whenever you are ready to switch to solar power, request a quote to get excellent services from one of our solar panel experts. We will help you figure out the specific Arizona solar incentives and rebates you are eligible for.