Residential Incentives
Incentives available for residential photovoltaic systems installed in 2008 can cover over 50% 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. Customers can choose instead to receive a performance based incentive payment over 10, 15, or 20 years. Off-grid customers receive a rebate of $2/watt. See more here: www.greenwatts.com.
TEP also offers net metering on systems up to 15 kW DC. For their description of how it works, see: www.greenwatts.com.
TRICO and SSVEC rebate
Both TRICO and SSVEC offer rebates of $4/watt up to 50% of the total system cost. More information can be found at www.trico.coop or www.ssvec.org.
Federal Tax Credit
The federal solar tax credit is a 30% credit off income taxes. There is a $2,000 cap. The credit changes to 10% for commercial systems installed after December 31, 2008 and no credit for residential systems.
www.dsireusa.org
www.seia.org
State Tax Credit
The Arizona state income tax credit is 25% and is capped at $1,000. 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
www.revenue.state.az.us
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. ยง 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.