Free Hot Water often highlights California’s generous subsidies for solar hot water installations, but it’s not the only state committed to solar water heating.
Arizona’s utilities all offer different—but valuable—solar hot water incentives for both residential and commercial installations. Of course, these are in addition to the Federal government’s 30% Investment Tax Credit.
APS – (Arizona Public Service)
Service area: The APS service area covers large part of the state, including parts of Phoenix, parts of Flagstaff, Parker, and Yuma.
- Residential: $0.50/kWh estimated first-year energy savings, based on OG-300 ratings, up to 50% of the system’s cost.
- Commercial: Up to $0.68/kWh estimated first-year energy savings based on OG-300 ratings for small systems. For large solar thermal systems, customers can receive $0.41/kWh estimated first year energy savings, or choose a 10, 15 or 20 year production based incentive (PBI). However, like the residential incentive, incentives are limited to 50% of total system cost.
SRP (Salt River Project) – EarthWise Solar Energy Incentive Program
Service area: SRP services most of Phoenix, Mesa, Tempe, Paradise Valley, Fountain Hills, Scottsdale, Apache Junction, Peoria, Queen Creek, Avondale, Chandler, Town of Gilbert, Glendale, Guadalupe, and Tolleson.
- Residential: $0.40/kWh for 1st year estimated energy savings (based on SRCC rating)
- Commercial: $0.40/kWh for 1st year equivalent energy savings. Maximum incentive is up to $350,000 per customer per fiscal year, and up to 60% of the individual total project cost(s)
- Solar Pool heating, residential: Up to $350,000 per customer per fiscal year; incentive not to exceed 60% of the individual total project cost.
- Solar pool heating, commercial: $0.25/kWh for first year metered energy savings savings (unglazed panels); $0.40/kWh for first year metered energy savings (glazed panels) up to $350,000 per customer per fiscal year. However, incentive is not to exceed 60% of the individual total project cost.
TEP (Tucson Electric Power) Renewable Energy Credit Purchase Program
Service area: City of Tucson
- Residential: $0.25/kWh equivalent, plus $750 up to a maximum incentive of $1,750.
- Commercial Solar Water Heater: $0.50/kWh-equivalent, plus $750
- The City of Tucson will also waive the permit fee for the installation of a qualifying solar system up to $1,000 for a single installation, or $5,000 for a subdivision or multiple project sites. However, plan review fees still apply.
(Note: Free Hot Water will be publishing TEP solar thermal case study next week.)
UES (UniSource Energy Services)
Service area: UNS Gas covers most of the Northern half of Arizona for natural gas service, including Flagstaff.
- Residential solar water heating AND space heating systems: $0.50/kWh up-front incentive, up to $1,750
- Small commercial solar water heating and space heating systems: $0.50/kWh up-front incentive, up to $200,000
- Large commercial solar water heating systems: Performance-based incentive (unspecified)
- Solar space cooling systems (non-residential only): The incentive for the thermal energy delivered for cooling (i.e., solar air conditioning) by a solar HVAC system is based on actual performance and ranges between $0.104/kWh-equivalent and $0.116.kWh equivalent. In addition, systems that incorporate solar thermal heating and/or solar thermal water heating are eligible for the large solar water heating PBI. Contact Free Hot Water for engineering a solar cooling system.
Note: The Trico Electric Cooperative – SunWatts Incentive Program has depleted its rebate funds for 2012.
On top of all of the above, there several Arizona state solar tax incentives for solar thermal systems:
- All solar hot water equipment is exempt from sales tax.
- Residential systems can receive a 25% of system cost state tax credit up to 1,000 maximum per residence.
- Commercial systems can receive up to 10% of installed cost with a maximum tax credit of $25,000 for any one building in the same year and $50,000 per business in total credits in any year.
With all of the above incentives and rebates, it’s clear that Arizona is ripe for a solar thermal boom. The real challenge is to get the word out to consumers and business owners…as usual.