Through 2016, the federal government is offering a 30% (uncapped) tax credit on non-residential solar system installations. Your company may also recognize accelerated capital depreciation over five years, with 50% bonus depreciation for 2009 projects. In addition, Arizona offers a 10% tax credit (capped at $25,000).

Utility companies offer both up-front and performance-based incentives. These incentives vary depending on the size of the system and the utility company.

Like many other states, Arizona has instituted a renewable portfolio standard (RPS) which requires 15% of the state’s power must be produced by renewable sources by 2025. The Arizona Corporate Commission (which regulates most utility companies) has said that utility companies may increase rates if they meet the 15% mandate. This is another indication that utility prices will be more volatile and unpredictable in the future.

Contact us for more information or assistance with tax credits and utility incentives.