Arizona Solar Photovoltaic Rebates

• APS $1.95 per DC watt installed up to $75,000 or 50% of project
• SRP $1.95 per DC watt installed up to $13,500 (will be reduced again April 2010)
• 30% Federal income tax credit
• $1000 Arizona personal income tax credit
• No State Sales Tax
• Property value immediately increases by $20 for every $1 offset with zero tax on value for life

Examples of typical Arizona Solar Systems

• Above example prices include system design and installation, estimated plan review for the City of Phoenix as an APS customer.
• All quotes are subject to a site evaluation of your property. Call today to schedule your evaluation at (623) 806-8806.
• Modifications for roofing, electrical equipment or service boxes, or other connective elements are not included in these estimates; modified system quotes will be provided after site evaluation to adjust any additional charges, if necessary.
• Estimates on prices listed above assume flat, rolled asphalt roof as pitched roofing systems or flat foam roof prices can vary.
• APS incentive up to $1.95/watt installed (residential) with a maximum size of 20KW. Max incentive from APS is 50% for project costs with payments limited to $75,000. Utility incentive funds must be reserved before any work can be started to guarantee availability. Utilities dictate all credit purchase payments for solar program.
• Customer receives utility payment directly from utility after system is inspected and commissioned. The utility incentive can be assigned to Phoenix Energy Products for final payment.
• Customer is responsible for completing appropriate tax documents in order to claim Arizona and Federal Personal Income Tax Credit. Federal tax credit demonstrated shows 30% of the total gross project cost. A tax advisor should be consulted for applicability and calculation of tax incentives.
• All savings are based on average cost per kilowatt hour for typical utility rate schedule. Actual savings will vary depending on utility rate, location of the property, angle of the modules and actual energy costs.
• Estimated First Year kilowatt hours generated is based on variability of latitude fixed-tilt radiation numbers from 1961-1990 averages in Phoenix, Arizona. The values are directly in proportion to a PV array with an unobstructed view of the sky at a 25% average daily power de-rating and a 30° tilt angle fixed-pitch due-south.
• All system performance is directly affected by site conditions with varied output and numbers are estimated.
• Prices and system specifications are subject to change without notice.

Here are 5 steps to get you started calculating your return on value:

Step 1

Know your DkWH (daily kilowatt hours), system manufacture’s wattage, and system cost?

The first thing you’ll need to know is how much the system you are considering to purchase is going to cost. In this example we will use a 2000 sqft home with an assumed electric bill of $350.00 averaged monthly over a year, and a 12,000 watt photovoltaic installed system at $69,600.

Step 2

Reduce Your cost by Utility Rebates, Tax Credits, and State Tax Credits?

Find out what your utility is providing for solar rebates. In this example we will demonstrate how an APS customer is provided incentives. APS is providing $1.95 per DC watt up to $75,000 or 50% of project (SRP $2.70 $13,500 ~ recently reduced scheduled to reduce again in 2010). Multiply APS $1.95 by 12,000 watts calculates to $23,400 and subtract this amount from $69,600 bringing the new balance to $46,200.

Also, the federal government allows homeowners to take tax credits on the purchase of solar panels, so you’ll reduce your total cost by the tax credit available. Currently, for solar photovoltaic panels, homeowners are allowed to take a tax credit of 30% of the purchase price uncapped. In this example, the system cost is $43,800, 30% of $43,800 is $13,140 leaving $30,660 as the new "cost" of the system.  Arizona State Tax credit provides $1,000 credit so subtract this amount from $29,660 and the total amount is $29,660 for a 12,000 watt photovoltaic system. Remember we’ve gone from $69,600 to $29,660 !! Zero percent financing for 6 and 12 months zero down available.  See our website www.PhoenixEnergyProducts.com for details.

Step 3

How much Energy Will your Solar Panels Collect?

The next thing you need to know is how much energy your solar panels will collect. Make sure you ask the integrator specific questions, so an accurate number, key to your calculations and return on investment will guarantee your return as sure as the sun rises and the sun sets.  Let’s say for calculation purposes your $69,600 system you purchased a 12,000 watt array with the ability to collect approximately 58 kWh each day during summer peak periods; the number you are interested in right now is how much energy your system will provide for a single day and your questions are answered on what solar will do for you.

Step 4

What do you pay per kWh?

You will need to know how much you pay per kWh. This number will be on your electric bill. In Arizona we pay an average $0.15/kWh and in Hawaii they pay $0.52/kWh. So, it can depend on the utility company and the state where your property resides.

Step 5

When do I break even?

Now that you have all the information you need, you are ready to calculate how long you will need to own your solar system to break even. If you pay $0.15 per kWh and you collect 58kWh of electricity a day, you are saving $8.70 a day – or approximately $261.00 a month.  If you have any questions give us a call (623) 806-8806 or fill out the evaluation for free estimate.

A Solar PV system increases the home value 20 to 1 for every annual dollar reduced in operating costs based on the system installed. In Arizona, a solar PV system compares directly with other home improvements in percentage of cost recovered, often recovering more than 100% of its originating install cost per Appraisal Institute.

Tips & Warnings

Your break-even point may vary greatly based on where you live and how much you pay for electricity. If you live where you get a lot of sun and have high electricity costs, you will see a break even much sooner than a location that doesn’t get as much sun and has low electricity costs. If roof tiles are shallow S-Tiles, electric service is over 50 feet away, electric service box is over utilized, or restrictions to attic space you will need consider each of these items due to labor and supply costs. Simply add the suggested costs to your system cost and divide by the amount generated from your rooftop, now you know your value once again.