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Discover the Power of Solar Energy in Arizona!

Welcome to Arizona, a state renowned for its stunning desert landscapes, vibrant cities, and an abundance of sunny days. Arizona stands as a leading force in the solar energy sector, thanks to its unparalleled access to sunlight year-round. This natural advantage positions Arizona as an ideal location for harnessing solar power, providing an exceptional opportunity for homeowners and businesses to invest in clean, renewable energy. With attractive incentives designed to lower upfront costs and a community increasingly committed to sustainability, Arizona is at the forefront of a solar revolution. Learn how tapping into the abundant sunshine can power your home, reduce energy bills, and contribute to a cleaner environment right here in the Grand Canyon State. Join us in leveraging the sun’s endless energy and step into a brighter, more sustainable future in Arizona.

Solar State Incentives

Arizona State Solar Incentives

Pima County - Solar & Wind Permitting Requirements
Pima County has established solar and wind permitting standards. Requirements include site plans, equipment cut sheets, and specific diagrams for various systems.
Phoenix City - Municipal Code 232 Residential Solar PV System Permit
Phoenix offers permitting plans for solar PV with various fees and inspections, and has launched the SolarAPP Pilot program.
Credit for Renewable Energy Investment and Production for Self-Consumption by International Operations Centers (Corporate)
Arizona legislation provides tax credit for renewable energy systems used in manufacturing and international operations centers, with an investment requirement.
Maricopa County - Renewable Energy Systems Zoning Ordinance
Maricopa County Zoning Ordinance allows renewable energy systems in any district, with specific siting requirements and zoning standards.
City of Phoenix - Renewable Energy Goal
Phoenix City Council aims for 15% of city's electricity from renewable energy by 2025, and to become a carbon-neutral city by 2060.
Mohave Electric Cooperative - Renewable Energy Incentive Program
Mohave Electric Cooperative offers rebates for the installation of renewable energy systems, including solar and wind power, on homes and businesses.
Mohave Electric Cooperative - Energy Efficiency Rebate Program
Mohave Electric Cooperative provides rebates for energy-efficient installations like heat pumps and EV charging stations.
Southwest Gas Corporation - Commercial High-Efficiency Equipment Rebate Program
Southwest Gas offers rebates for energy-efficient equipment purchases made in 2022. Applications processed first-come, first-served basis until funds run out.
City of Tucson - Solar Design Requirement for Homes
Since 2008, Tucson has required all new single-family homes and duplexes to be "solar-ready," either with installed solar systems or the necessary hardware for future installation.
City of Chandler - Green Building Requirement for City Buildings
Chandler, AZ mandates new city buildings over 5,000 sq ft to achieve LEED Silver certification or higher, with exemptions for cost control.
Net Billing
In 2016, Arizona replaced net metering with net billing. Under this policy, customer-generators are credited at an avoided cost rate for energy exported to the grid. The ACC has not set a strict limit on system size capacity or aggregate capacity. Current export compensation rates are set to decrease in October 2021.
Property Tax Assessment for Renewable Energy Equipment
In Arizona, renewable energy and storage equipment are assessed at 20% of the original cost for property tax purposes, after depreciation deductions.
Solar Construction Permitting Standards
Arizona requires solar system owners to obtain building permits, with fees based on the cost and size of the project. Rules governing these fees were established in 2008.
City of Scottsdale - Green Building Incentives
Scottsdale's Green Building Program incentivizes eco-friendly residential construction with assistance, permits, education, and recognition. The program aims to reduce environmental impact and promote energy efficiency.
City of Scottsdale - Green Building Policy for Public Buildings
Scottsdale City Council adopts 2021 edition of International Energy Construction Code and International Green Construction Code, effective Jan 7, 2023.
Trico Electric Cooperative - SunWatts Incentive Program
Trico Electric's SunWatts Program provides rebates for solar water heaters, at $0.40 per first year kilowatt-hour savings.
Energy Equipment Property Tax Exemption
Since 2006, Arizona has offered property tax exemptions for properties equipped with solar energy devices. The law was expanded in 2009 to include other renewable energy technologies and energy-efficient building components.
SRP - Net Metering
SRP modified its net-metering program in 2015, allowing residential customers with on-site energy generation to have lower kWh charges. Customers who signed up before December 2014 retain original rates.
Interconnection Guidelines
Arizona Corporation Commission is in the process of establishing statewide interconnection standards for distributed generation. Current guidelines apply to systems up to 10MW.
Maricopa Assn. of Governments - Solar Domestic Water Heating Permitting Standards
MAG enacted residential solar water heating permit standards in 2003 to promote uniformity, revised in 2012.
Energy Efficiency Standards for State Buildings
Arizona law mandates state departments to reduce energy usage by 15%, purchase certified energy-efficient products, and adopt energy conservation standards for new projects.
Solar Design Standards for State Buildings
Arizona law mandates solar design standards for new state buildings over 6,000 sq ft, including schools and universities, since 1997.
Renewable Energy Standard
Arizona Corporation Commission expands Renewable Energy Standard to 15% by 2025; 30% of this should come from distributed energy technologies.
Solar Contractor Licensing
For solar installations in Arizona, specific licenses are needed: R-11 & C-11 for electrical, R-37 & C-77/C-78 for water heating, R-39 & C-79 for heating/cooling, and B-6 & A-19 for pools.
Sulphur Springs Valley EC - SunWatts Rebate Program
SunWatts Program offers incentives for solar water heating systems, paying 50 cents per kilowatt-hour saved in the first year.
Solar and Wind Equipment Sales Tax Exemption
Arizona offers sales tax exemptions for the sale and installation of solar energy devices including wind generators and solar photovoltaics. The exemption also applies to net metering transactions and renewable energy credits.
Residential Solar and Wind Energy Systems Tax Credit
Arizona offers a 25% Solar Energy Credit on personal income tax for residents who install solar or wind energy devices, up to a $1,000 limit.
Solar & Wind Equipment Certification
Arizona mandates warranties on solar energy systems and their components, requires written statements of warranty, and enforces installation and safety standards.
Arizona Solar Rights
Arizona law dissolves any restrictions on the use of solar energy on private properties. It also prevents homeowners associations from banning solar-energy devices, allowing only reasonable placement rules.

Federal Solar Incentives

USDA - Rural Energy for America Program (REAP) Grants
REAP, administered by USDA, provides financial aid to small rural businesses and agricultural producers for sustainable energy projects. Grants cover 25% of the project cost, up to $25 million.
Interconnection Standards for Small Generators
New FERC order mandates small generators under 20 MW to maintain operation during abnormal frequency and voltage events, enhancing interconnection efficiency.
USDA - Rural Energy for America Program (REAP) Loan Guarantees
The Rural Energy for America Program (REAP) supports agricultural producers and rural businesses in the US by providing financial aid for renewable energy projects and energy efficiency improvements.
Clean Renewable Energy Bonds (CREBs)
Clean Renewable Energy Bonds (CREBs) were used by public entities to fund renewable energy projects. They were repealed in 2017.
Qualified Energy Conservation Bonds (QECBs)
Qualified Energy Conservation Bonds (QECBs) financed energy projects by local governments. Discontinued in 2018, they offered tax credits as interest to bondholders.
Office of Indian Energy Policy and Programs - Funding Opportunities
The DOE's Office of Indian Energy Policy and Programs aids tribes in attaining energy self-sufficiency and economic growth through renewable energy and energy efficiency technologies.
Fannie Mae Green Financing – Loan Program
Fannie Mae's Green Financing offers loans for multifamily properties aiming for energy and water efficiency improvements. Eligible properties can access favorable rates and additional loan proceeds.
Energy-Efficient Mortgages
Energy efficient mortgages (EEM) allow homeowners to finance energy-saving renovations or purchase new energy-efficient homes. These loans, insured by the U.S. government, aim to promote energy efficiency.
Green Power Purchasing Goal for Federal Government
The Energy Policy Act of 2005 set a goal for federal buildings to use 7.5% renewable energy by 2013. This target was increased to 30% by 2025 but later rescinded in 2018.
USDA - High Energy Cost Grant Program
USDA's grant program, enhancing energy generation in rural areas, concluded its latest application period on July 6, 2021. Updates can be found on the program website.
Residential Energy Conservation Subsidy Exclusion (Personal)
US law exempts energy conservation subsidies provided by utilities from taxation but requires adjustments for federal tax credits. IRS guidance on solar rebates is unclear.
Residential Renewable Energy Tax Credit
H.R. 5376 extends tax credit for energy storage systems and excludes biomass heaters, with credit amounts varying by technology type and installation date.
U.S. Department of Energy - Loan Guarantee Program
The Inflation Reduction Act has allocated $11.7 billion to the LPO for new loans, boosting loan authority by $100 billion, and setting up the Energy Infrastructure Reinvestment Program.
Business Energy Investment Tax Credit (ITC)
The Inflation Reduction Act of 2022 updates the federal Business Energy Investment Tax Credit, introducing new eligibility criteria, bonus credits, and transitions the tax credit to a new section.
Renewable Electricity Production Tax Credit (PTC)
The Inflation Reduction Act of 2022 introduces changes to the federal renewable electricity production tax credit, introducing new bonus credits and eligibility criteria.
Residential Energy Conservation Subsidy Exclusion (Corporate)
U.S. energy conservation subsidies provided by public utilities are tax-exempt, but this does not extend to certain electricity-generating systems. Tax credits can't be claimed for unsubsidized expenses.
Modified Accelerated Cost-Recovery System (MACRS)
The Tax Cuts and Jobs Act of 2017 allows 100% depreciation for qualified assets, impacting renewable energy technologies. MACRS classifies these technologies for depreciation purposes.
Energy and Emissions Goals and Standards for Federal Government
President Biden's Executive Order 14057 sets ambitious sustainability goals for the US, including 100% carbon-free electricity by 2030 and a fully zero-emission federal fleet by 2035.