Arizona Solar Incentives

Arizona Solar Incentives, Tax Credits, and Rebates

There are several incentives in Arizona that make investing in solar and renewable energy cost-effective.

As one of the sunniest states in the United States, Arizona, Phoenix is among the top five ranked in the country for solar conversion.Since Arizona is situated in the desert, the citizens have the best natural solar resources in the country.

But installing solar panels in Arizona can be pricey and prevents residents from accessing renewable energy, all the sunshine in the world would be for naught since it will not be used.

Solar panel tax credits, incentives, and rebates in Arizona

In Arizona, the Mohave Electric Cooperative offers incentives to its consumers for the installation of renewable energy systems in their residences and places of business. The Cooperative will offer rebates for home and small commercial wind and photovoltaic (PV) systems. Only residential systems are eligible for solar water heating rebates. Customers must comply with all pertinent terms and conditions and submit the necessary paperwork.

Residential Solar and Wind Energy Systems Tax Credit - Individual taxpayers who install a solar or wind energy device at their Arizona home are eligible for Arizona's solar energy credit. No matter how many energy devices are placed, a credit of up to $1,000 is provided against the taxpayer's income tax for 25% of the cost of a solar or wind energy device.

The year of installation is used in claiming the solar credit. The unused portion of the state tax credit may be carried forward for up to five years if the credit's value exceeds the tax liabilities of a payer in a given year. However, the credit is not available to taxpayers who lease equipment or who sign power purchase contracts with a third party who owns the equipment.

Property Tax Exemption - The initial scope of Arizona's property tax exemption, was limited to "solar energy devices and any other device or system designed for the production of solar energy for on-site consumption." These systems are regarded as having no value to the property for property tax assessment purposes.

Local efficiency program - The first green building program in Arizona focused on residential home construction was Scottsdale's, created in 1998. It was created to promote environmentally friendly building practices in the Sonoran Desert area by utilizing clean, resource- and energy-efficient materials and techniques in the planning and building dwellings.

The program's objectives are to lessen the adverse effects of construction and power plant on the environment, save money both now and in the future on energy, water, and other natural resources, and promote a healthier indoor atmosphere.

Arizona Incentive Database

Name	State	Category	Type
Qualifying Wood Stove Deduction	AZ	Financial Incentive	Personal Tax Deduction
SRP - Solar Water Heating Program	AZ	Financial Incentive	Rebate Program
City of Tucson - Solar Dividend	AZ	Regulatory Policy	Other Policy
Residential Solar and Wind Energy Systems Tax Credit	AZ	Financial Incentive	Personal Tax Credit
Solar and Wind Equipment Sales Tax Exemption	AZ	Financial Incentive	Sales Tax Incentive
Revolving Energy Loans for Arizona (RELA) Program	AZ	Financial Incentive	Loan Program
Sulphur Springs Valley EC - SunWatts Rebate Program	AZ	Financial Incentive	Rebate Program
Solar Contractor Licensing	AZ	Regulatory Policy	Solar/Wind Contractor Licensing
TEP - Net Metering	AZ	Regulatory Policy	Net Metering
Mandatory Photovoltaic System Cost Analysis	AZ	Regulatory Policy	Line Extension Analysis
City of Scottsdale - Green Power Purchasing	AZ	Regulatory Policy	Green Power Purchasing
Fuel Mix and Emissions Disclosure	AZ	Regulatory Policy	Generation Disclosure
City of Tucson - Sustainable Energy Standard	AZ	Regulatory Policy	Energy Standards for Public Buildings
TEP - Residential Solar Water Heating Incentive	AZ	Financial Incentive	Rebate Program
TEP - SunShare PV Purchase	AZ	Financial Incentive	Other Incentive
Maricopa Assn. of Governments - Solar Domestic Water Heating Permitting Standards	AZ	Regulatory Policy	Solar/Wind Permitting Standards
APS - Solar Water Heating Incentive Program	AZ	Financial Incentive	Rebate Program
Diesel Low Emissions Incentive Grant	AZ	Financial Incentive	Grant Program
Interconnection Guidelines	AZ	Regulatory Policy	Interconnection
SRP - Net Metering	AZ	Regulatory Policy	Net Metering
Non-Residential Solar & Wind Tax Credit (Corporate)	AZ	Financial Incentive	Corporate Tax Credit
Energy Equipment Property Tax Exemption	AZ	Financial Incentive	Property Tax Incentive
APS - Residential Energy Efficiency Rebate Program	AZ	Financial Incentive	Rebate Program
Building Energy Code	AZ	Regulatory Policy	Building Energy Code
Sulphur Springs Valley EC - Residential Energy Efficiency Rebate	AZ	Financial Incentive	Rebate Program
Trico Electric Cooperative - Energy Conservation Home Improvement Loan	AZ	Financial Incentive	Loan Program
Sulphur Springs Valley EC - Residential Energy Efficiency Loan Program	AZ	Financial Incentive	Loan Program
Trico Electric Cooperative - SunWatts Incentive Program	AZ	Financial Incentive	Rebate Program
City of Tucson - Permit Fee Credit for Solar Energy Systems	AZ	Financial Incentive	Green Building Incentive
APS - Energy Efficiency Solutions for Business	AZ	Financial Incentive	Rebate Program
City of Scottsdale - Green Building Policy for Public Buildings	AZ	Regulatory Policy	Energy Standards for Public Buildings
City of Scottsdale - Green Building Incentives	AZ	Financial Incentive	Green Building Incentive
APS - Net Metering	AZ	Regulatory Policy	Net Metering
Solar Construction Permitting Standards	AZ	Regulatory Policy	Solar/Wind Permitting Standards
Town of Buckeye - Green Building Incentive	AZ	Financial Incentive	Green Building Incentive
Sulphur Springs Valley EC - SunWatts Loan Program	AZ	Financial Incentive	Loan Program
APS - GEOSmart Financing Program	AZ	Financial Incentive	Loan Program
Net Billing	AZ	Regulatory Policy	Net Metering
TEP Business Energy Solutions	AZ	Financial Incentive	Rebate Program
UES (Electric) - Residential Efficiency Program	AZ	Financial Incentive	Rebate Program
UES (Gas) - Commercial Energy Efficiency Rebate Program	AZ	Financial Incentive	Rebate Program
UES - Energy Smart Homes Program	AZ	Financial Incentive	Rebate Program
City of Chandler - Expedited Plan Review for Green Buildings	AZ	Financial Incentive	Green Building Incentive
City of Chandler - Green Building Requirement for City Buildings	AZ	Regulatory Policy	Energy Standards for Public Buildings
Salt River Project - Business Energy Efficiency Programs	AZ	Financial Incentive	Rebate Program
City of Tucson - Solar Readiness and EV-Ready Sustainability Codes	AZ	Regulatory Policy	Building Energy Code
UES (Electric) - Commercial Energy Efficiency Rebate Program	AZ	Financial Incentive	Rebate Program
Renewable Energy Business Tax Incentives	AZ	Financial Incentive	Industry Recruitment/Support
Southwest Gas Corporation - Home Builder Efficiency Rebate Program	AZ	Financial Incentive	Rebate Program
Southwest Gas Corporation - Commercial High-Efficiency Equipment Rebate Program	AZ	Financial Incentive	Rebate Program
Arizona - Energy-Efficient Residential Appliance Rebate Program	AZ	Financial Incentive	Rebate Program
SRP - Residential Energy Efficiency Rebate Program	AZ	Financial Incentive	Rebate Program
Southwest Gas Corporation - Combined Heat and Power Program	AZ	Financial Incentive	Rebate Program
Renewable Energy Production Tax Credit (Personal)	AZ	Financial Incentive	Personal Tax Credit
Renewable Energy Production Tax Credit (Corporate)	AZ	Financial Incentive	Corporate Tax Credit
Mohave Electric Cooperative - Energy Efficiency Rebate Program	AZ	Financial Incentive	Rebate Program
Southwest Gas Corporation - Large Commercial Energy-Efficiency Boiler Program	AZ	Financial Incentive	Rebate Program
Copy of TEP - Renewable Energy Credit Purchase Program	AZ	Financial Incentive	Rebate Program
Electric District No. 3 - Solar Rebate Program	AZ	Financial Incentive	Rebate Program
City of Maricopa - Solar Rebate Program	AZ	Financial Incentive	Rebate Program
Mohave Electric Cooperative - Renewable Energy Incentive Program	AZ	Financial Incentive	Rebate Program
Energy Efficiency Standards	AZ	Regulatory Policy	Energy Efficiency Resource Standard
City of Avondale - Residential Energy Efficency Rebate Program	AZ	Financial Incentive	Rebate Program
City of Phoenix - Design Standards for City Buildings	AZ	Regulatory Policy	Energy Standards for Public Buildings
City of Phoenix - Renewable Energy Goal	AZ	Regulatory Policy	Green Power Purchasing
APS - Solutions for Business Financing	AZ	Financial Incentive	Loan Program
TEP - Commercial EasySave Program	AZ	Financial Incentive	Rebate Program
APS - Multifamily Energy Efficiency Program	AZ	Financial Incentive	Rebate Program
Maricopa County - Renewable Energy Systems Zoning Ordinance	AZ	Regulatory Policy	Solar/Wind Permitting Standards
UES (Gas) - Residential Efficiency Program	AZ	Financial Incentive	Rebate Program
Copy of TEP - Contractor Energy Efficiency Rebate Program	AZ	Financial Incentive	Rebate Program
UniSource Energy - Contractor Energy Efficiency Rebate Program	AZ	Financial Incentive	Rebate Program
City of Phoenix - Energize Phoenix Residential Incentives	AZ	Financial Incentive	Rebate Program
Southwest Gas Corporation - Smarter Greener Better Solar Water Heating Program	AZ	Financial Incentive	Rebate Program
Duncan Valley Electric Cooperative - SunWatts Rebate Program	AZ	Financial Incentive	Rebate Program
Copy of Duke Energy (Electric) - Residential Energy Efficiency Rebate Program	AZ	Financial Incentive	Rebate Program
Credit for Renewable Energy Investment and Production for Self-Consumption by International Operations Centers (Corporate)	AZ	Financial Incentive	Corporate Tax Credit
TEP Residential Solar Program	AZ	Financial Incentive	Utility Rate Discount
APS AZ Sun DG Program	AZ	Financial Incentive	Utility Rate Discount
Phoenix City - Municipal Code 232 Residential Solar PV System Permit	AZ	Regulatory Policy	Solar/Wind Permitting Standards
Tucson City - Solar Farm Permit Requirements	AZ	Regulatory Policy	Solar/Wind Permitting Standards
Pima County - Solar & Wind Permitting Requirements	AZ	Regulatory Policy	Solar/Wind Permitting Standards
Salt River Project Battery Storage Incentive Program	AZ	Financial Incentive	Rebate Program
Alternative Fuel Vehicle Fee Reduction Program	AZ	Financial Incentive	Personal Tax Deduction
Alternative Fuel Vehicles Tax Exemption	AZ	Financial Incentive	Personal Tax Exemption
Arizona Public Service - Take Charge AZ Pilot Program	AZ	Financial Incentive	Rebate Program
Salt River Project - Business EV Charger Rebate	AZ	Financial Incentive	Rebate Program
Tucson Electric Power - Home EV Chargers Rebate	AZ	Financial Incentive	Rebate Program
Tucson Electric Power - Smart EV Charging Program	AZ	Financial Incentive	Rebate Program
Arizona – Home Electrification and Appliance Rebate (HEAR) Program	AZ	Financial Incentive	Rebate Program
Tax-Exempt Financing for Green Buildings, Renewable Energy & Brownfield Redevelopment	US	Financial Incentive	Loan Program
Conservation Security Program (CSP) Production Incentive	US	Financial Incentive	Performance-Based Incentive
Business Energy Investment Tax Credit (ITC)	US	Financial Incentive	Corporate Tax Credit
Federal Excise Tax Exemption for Gasohol	US	Financial Incentive	Corporate Tax Exemption
Modified Accelerated Cost-Recovery System (MACRS)	US	Financial Incentive	Corporate Depreciation
Energy Star Financing and Mortgages	US	Financial Incentive	Loan Program
USDA Rural Housing Service Loans	US	Financial Incentive	Loan Program
Residential Energy Conservation Subsidy Exclusion (Corporate)	US	Financial Incentive	Corporate Tax Exemption
Renewable Energy Production Incentive (REPI)	US	Financial Incentive	Performance-Based Incentive
Renewable Electricity Production Tax Credit (PTC)	US	Financial Incentive	Corporate Tax Credit
Small Business Administration Loan Programs	US	Financial Incentive	Loan Program
Energy-Efficient Mortgages	US	Financial Incentive	Loan Program
USDA - Rural Energy for America Program (REAP) Grants	US	Financial Incentive	Grant Program
Office of Indian Energy Policy and Programs - Funding Opportunities	US	Financial Incentive	Grant Program
Green Power Purchasing Goal for Federal Government	US	Regulatory Policy	Green Power Purchasing
Energy-Efficient Commercial Buildings Tax Deduction	US	Financial Incentive	Corporate Tax Deduction
Energy-Efficient New Homes Tax Credit for Home Builders	US	Financial Incentive	Corporate Tax Credit
Energy-Efficient Appliance Manufacturing Tax Credit	US	Financial Incentive	Industry Recruitment/Support
Residential Energy Efficiency Tax Credit	US	Financial Incentive	Personal Tax Credit
Veterans Housing Guaranteed and Insured Loans	US	Financial Incentive	Loan Program
Federal Appliance Standards	US	Regulatory Policy	Appliance/Equipment Efficiency Standards
Energy Goals and Standards for Federal Agencies	US	Regulatory Policy	Energy Standards for Public Buildings
Clean Renewable Energy Bonds (CREBs)	US	Financial Incentive	Loan Program
Qualified Energy Conservation Bonds (QECBs)	US	Financial Incentive	Loan Program
U.S. Department of Treasury - Renewable Energy Grants	US	Financial Incentive	Grant Program
USDA - High Energy Cost Grant Program	US	Financial Incentive	Grant Program
USDA - Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program	US	Financial Incentive	Loan Program
USDA - Repowering Assistance Biorefinery Program	US	Financial Incentive	Grant Program
Title I Property Improvement Loans	US	Financial Incentive	Loan Program
USDA - Rural Energy for America Program (REAP) Energy Audit and Renewable Energy Development Assistance (EA/REDA) Program	US	Financial Incentive	Grant Program
Low Income Home Energy Assistance Program (LIHEAP)	US	Financial Incentive	Grant Program
Weatherization Assistance Program (WAP)	US	Financial Incentive	Grant Program
Fannie Mae Green Financing – Loan Program	US	Financial Incentive	Loan Program
Qualified Commercial Clean Vehicle Tax Credit	US	Financial Incentive	Corporate Tax Credit
Alternative Fuel Vehicle Refueling Property Tax Credit (Corporate)	US	Financial Incentive	Corporate Tax Credit
Alternative Fuel Vehicle Refueling Property Tax Credit (Personal)	US	Financial Incentive	Personal Tax Credit
Previously-Owned Clean Vehicle Tax Credit	US	Financial Incentive	Personal Tax Credit

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.