Commercial Incentives
Incentives available for commercial solar in 2008 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 20 kW. Systems larger than 20 kW 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 currently offers net metering up to 15 kW DC systems. For an explanation of their net metering system see www.greenwatts.com.
Federal Tax Credit
The federal solar tax credit is a 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 reduces to 10% for systems installed after December 31, 2008.
www.dsireusa.org
www.seia.org
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.
www.seia.org