Solar systems are perfect for such areas as Tucson, Arizona due to the high amount of yearly sunshine and the fact that many solar-friendly policies in place. The range of incentives which come from solar generation include solar rebates, tax credits, tax exemptions and net-metering, which are all featured here.
The average payback time for a standard-sized photovoltaic (PV) system (5kW) is about 9 years.
Tucson energy rates are at a modest $0.106/kWh. If you installed a 5kW system you would save approx. $858 per year on your electricity bill ($72/month).
The state of Arizona offers several different rebate packages with the actual amount of rebate dependent on a particular utility provider. Residents of Tucson are able to enjoy a rebate amount of $750 per kW through the Tucson Electric Power company. Rebate incentives are capped at a maximum of $15,000, which is often based on the size of a particular installation.
Solar or wind energy installations attracts a maximum $1,000 permitted limit in the state of Arizona. This tax credit should be claimed the year of the installation taking place, although it can be held on account for a total of 5-years.
Residents in Arizona enjoy a 100% tax exemption on eligible solar energy equipment and the installation by qualified contractors. Although certain parts of the system, such as the controls and batteries are exempt from this rule. Also, the installed solar energy system is exempt from higher property taxes due to the nature of increasing a properties value.
In accordance with the Renewable Energy Standard and Tariff (REST) the utility companies in the state of Arizona are required to get at least 15% of their energy from renewable sources by the year 2025. The states ambitions for total power sales from renewable energy aren’t are all that impressive if compared to other states, such as Oregon which is aiming for 25% of its power share from renewable sources.
Net-metering is provided in Tucson for customers with a solar panel system up to 10kW, meaning a credit is held on account for any excess energy generated. Credits are held over to the following month’s bill. Although at the end of the January billing cycle, any excess credits still held on account are returned to the utility company.