Are there any statewide rebates in Arizona?

Yes! Arizona has a number of solar energy programs:

Residential Solar Tax Credit: The Residential Arizona Solar Tax Credit reimburses homeowners $0.07/Watt based on the solar project size. This credit is available up to $1,000 and is applied to the personal state income tax in the year the system is installed. For more information, click here.

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Equipment and Property Tax Exemptions:

Solar customers are exempt from sales tax on the purchase of your solar system or additional property taxes based on the value added to the customer's home from installing solar panels.

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Are there any utility or municipality rebates in Arizona?

Yes! Below are details about the following utility-based solar incentives:

Arizona Public Service Company (APS): Arizona Public Service Company utility offers two riders that allow homeowners to save money when installing solar panels.

RCP (Resource Comparison Proxy): RCP is a net billing solar purchase rider, it measures excess power production and provides a monthly bill credit based on the current RCP purchase rate. The credit will apply towards the APS bill amount each month, and any remaining credit will roll over to the next month’s bill. At the end of the year, APS will issue a refund check if monthly bill credits are more than $25.

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Eligibility for the RCP rate rider:

• • • Electricity must be generated using on-site solar panels

    • Solar panels must be interconnected to the APS grid

    • Solar panels must be installed at the service address

    • Homeowner must have an AMI meter

    • The RCP export rate is subject to the requirements found in the Arizona Administrative Code Distributed Generation Interconnection Requirements, the Interconnection Manual, and the Electric Service Requirements Manual

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EPR-2: EPR-2

 is a net billing renewable energy rider. It measures excess power production and provides a monthly bill credit based on the current EPR-2 purchase rate. The credit will apply towards the APS bill amount each month, and any remaining credit will roll over to the next month’s bill.

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Eligibility for the EPR-2 rate rider:

• • • Must have a qualifying onsite generation such as solar power, wind power or others

    • Must have a generating nameplate capacity of 100 kW-ac or less

    • Must have an AMI meter

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For more information about these APS Riders, click here.

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What is the Resource Comparison Proxy (RCP)?

The Arizona Corporation Commission (ACC) established the Resource Comparison Proxy (RCP) in September 2018 to compensate residential and small commercial customers for excess power produced by private rooftop solar systems.

The RCP is based on average market costs over a recent five-year period. The rate is usually adjusted annually, but customers are compensated for up to 10 years at the RCP export rate in place at the time they requested the interconnection of a new solar power system. Because solar energy prices have fallen over time, this rule has allowed customers to preserve higher export rate benefits.

The current RCP export rate is $0.932 per kWh, effective from October 1, 2021 through September 30, 2022.

From October 1, 2022 through September, 2023, the RCP rate is $0.0839 per kWh.

For more information, click here.

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What utilities have a Resource Comparison Proxy (RCP)?

The RCP is confirmed to be available from multiple utilities including Arizona Public Services, Tucson Electric Power, and Unisource Energy Services. For other utility companies, it is best to inquire directly with the company website or contact them for updated information.

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Are there any additional resources for rebates and incentives in Arizona?

Some other utilities may offer incentives or rebates for solar customers in Arizona. You can find up-to-date information about available rebates related to renewable energy and efficiency projects here: https://programs.dsireusa.org/system/program/az.