Tax Credits and Rebates
Your electrical provider may provide a substantial rebate to install a renewable energy system. As part of the 2001 Environmental Portfolio Standard (EPS) and subsequent 2007 Renewable Energy Standard Tariff (REST), most Arizona utilities are required to produce a percentage of their power from renewable sources. When your utility buys a portion your residential or commercial renewable energy system, they are buying the rights to the Renewable Energy Credits, or REC's, that are associated with the clean power produced by your system.
For more information about the rebates available from your utility, please follow the appropriate links below:
UTILITY REBATES
Unisource Green Energy Program
FEDERAL TAX CREDIT:
In 2005, the Federal government established the Energy Policy Act which gave homeowners a tax credit for qualifying renewable energy devices like solar electric and solar thermal systems. The tax credit was written to provide a 30% tax credit for these systems but with one caveat, the amount of the credit could not exceed $2,000. In 2008, as part of the Emergency Economic Stabilization Act, signed in October, the 30% residential and commercial tax credit was extended for 8 more years. However, in it's new form, the $2,000 cap on residential systems was lifted, giving end users a much larger credit to apply towards their tax liability.
Starting in 2009, wind energy systems will also qualify for the same tax credit, not to exceed $4,000.
For more information on the Federal Investment Tax Credit, please follow the links below:
ARIZONA TAX CREDIT:
The state of Arizona offers a one time 25% personal tax credit for the installation of a qualifying solar energy or wind energy device on a persons primary residence. The credit must be taken in the year that it is installed, and the maximum credit cannot exceed $1,000 total for all devices. Any amount greater than the persons tax liability can be carried forward up to five years until exhausted.
For more information on the Arizona Tax Credit, please follow the link below: