Sunny Arizona Is More Than Ready for Solar
For business owners who operate solar installation companies across the U.S., demand has certainly been heating up. Large-scale adoption of solar technology has taken root, and all kinds of businesses, from the U.S. military to various elementary schools, are getting on board. One quick look over the statistics of how rapidly solar is growing, and how much potential there is for renewable energy to take over energy production in this country, and the situation for solar starts to look pretty fantastic.
And one important consideration for why solar energy adoption has seen such dramatic increases over the last several years (beyond the sharp decline in the cost of materials), is the multitude of state and federal incentives that seek to make green energy a significant component of the nation’s overall power supply.
Today, we take a look at the state of Arizona, known as a perpetually sunny place to live, for both the young and old alike. Because of the sun’s power and presence in Arizona, the solar industry there has seen rapid growth since 2010. Recent months have seen a few minor setbacks – namely, net metering issues and some incentives being eliminated – but policy makers are working hard to get effective systems in place to spur the growth of solar once again.
Arizona Goes Solar in a Big Way
The state of Arizona ranked in the number 2 spot last year for total solar electric capacity, and for solar energy currently installed. And prices for PV systems and installation has fallen a dramatic 14% for Arizona residents, much higher than the national average of 8%. If that’s not enough to get the solar job done, there are as many as 330+ solar installation companies operating in Arizona today.
Renewable Portfolio Standards Make Room for Solar in Arizona
Many states have adopted a policy tool known as Renewable Portfolio Standards (RPS), which allow for increased adoption of technologies like solar. Arizona is no exception, and has implemented an RPS (adopted in 2006, reaffirmed in 2007 by the state’s Attorney General), which requires utility providers to either generate or purchase a set amount of electricity from renewable energy sources, and to complete the goal within a fixed amount of time. If the goals are not met by the utilities, the state will issue a penalty, further incentivizing power companies to adopt renewable energy, including solar power.
In Arizona, the Renewable Portfolio Standard has been pegged at 15% by the year 2025, with steps towards achieving that goal put in place on an annual basis. Further, half the goal has to come from residential sources, and the other half is set to be derived from non-residential, non-utility sources. Solar technologies that count towards these goals include:
+ Solar Water Heating
+ Solar Thermal Electric
+ Solar Thermal Process Heat
+ Photovoltaics
+ Solar Space Heat
Net Metering in Arizona
After lengthy deliberations, the Arizona Corporation Commission reached a decision with regard to net metering, approving a $0.70/kW monthly charge for new residential solar customers, with a $3.50 monthly charge for systems as large as 5 kW.
Arizona’s State and Local Solar Incentives and Rebates
There are several small- and large-scale solar incentives available for Arizona residents, including city-specific variations like Green Building Initiatives for Scottsdale locals, as well as statewide initiatives such as the Energy Equipment Property Tax Exemption. With 100% of the increased value qualifying for this exemption, Arizona residents should take note and act quickly. To qualify, the homeowner should provide their county assessor with proof if purchase and installation of any and all eligible equipment.
There is also an Arizona state sales tax exemption available to residents for 100% of the sales tax on eligible equipment related to Photovoltaics, Solar Water Heat, Solar Space Heat, Solar Pool Heating, and much more. Corporate tax credits are available for solar and wind energy system installations, with 10% of the installed cost available as a credit.
Arizona residents are offered a wood stove deduction for qualifying residential systems that is good to a maximum amount of $500 on wood heater purchase and installation. The city of Tucson, Arizona offers a permit fee credit for solar energy systems, to increase the installation of solar energy systems throughout the city.
More local incentives for Arizona residents can be found here.
Federal Incentives Available to Arizona Residents
Beyond the state of Arizona’s incentives (and local incentives, as well), state residents looking to implement solar technology in their homes or businesses can take advantage of federal incentives offered by the government. From incentives for energy-efficient mortgages, to the Residential Renewable Energy Tax Credit, federal incentives can offer as much as a 30% tax credit for qualifying expenditures related to renewable energy systems.
Resources for Arizona Residents Who Want to Go Solar
Arizona Goes Solar State and Federal Incentives
Solar Energy Industries Association page on Arizona State Solar Policy
Arizona Solar Center’s Guide to State Tax Incentives for Solar
Clean Energy Authority’s page on Arizona Solar Rebates and Incentives
[Photo Credit: Seidman Institute, SEIA]
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