Incentives available for commercial solar can cover up to 75% of system costs, reducing the simple payback to as low as 3 years.
 
 

Federal Tax Credit
The federal solar income tax credit is 30% of the total system cost. There is no cap and it can be carried forward 20 years and back one year, if needed.

Set to drop to 26% for systems installed after December 31, 2020, 22% in 2021, and 10% in 2022, where it will remain.

Click here for more info and IRS form

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.

There is a $1,000,000 pool of funds available first-come-first-serve each year for systems placed in service that year only. Systems installed earlier in the year have a greater chance of being awarded funds. Can be carried forward 5 years. Expires Dec 31, 2018.

Note: There is a 1% charge for obtaining the necessary certification letter from the Arizona Commerce Authority for the credit.

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State Property Tax Increase Exemption
Arizona state law dictates that your property taxes will not increase as a result of installing a photovoltaic system.

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Depreciation
Solar installations can be depreciated in five years under MACRS rules. The tax basis for depreciation is effectively equal to the total system cost less 50% of state and federal tax credits and is valued at approximately 25-35% of the system cost.

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REAP Grant
The USDA's Rural Energy America Program provides grants and loan guarantees to 'rural' small businesses outside of a census metro area (including Green Valley and Sahuarita) and agricultural producers (including plant nurseries) to deploy renewable energy systems and energy efficient measures. The grant is for up to 25% of the total project cost.

To see if your business qualifies as 'rural' input your address here: Property Eligibility Search

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NET Metering
TEP offers NET metering for solar electric systems. This means that 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 $0.03 - $0.04/kWh.