Discount Solar Power: How to get a 70 percent reduction in system cost


Discount Solar Power


Article by

Rena Giannoulakis


Rebates on Solar Power: How to get a 70 percent reduction in a systems costs through solar energy rebates.

Many states in the US, including Arizona, are encouraging residents and businesses to install solar energy power systems. These rebates can reduce the cost of installing a solar energy system by as much as 70 percent. With the variety of incentives offered, solar energy is affordable for many homeowners.

Arizona – Each utility has its own rebate program for solar energy. The programs differ not only by utility, but the utility of each program will change over time as certain milestones are achieved through redemption payment. There are different caps to encourage homeowners to install solar energy systems as soon as possible

Current solar power rebates to Arizona utilities ranging from $ 750 per kilowatt to $ 2,000 per kilowatt. Note the size of the solar system average is 7.5 kilowatts. In March 2012, the following discounts were in place for the utility companies in Arizona:

• Tucson Electric Power (TEP) = $ 600 per kilowatt

• Arizona Public Service (APS) = $ 550

• River project salt (PRS) = $ 600 per kilowatt electrical

• District # 3 of Pinal County (ED3) = $ 1350 per kilowatt

• Trico Electric Cooperative (TRICO) = $ 600 per kilowatt of energy services 

• Unisource (UNS) = • $ 600 per kilowatt

• Mohave Electric Cooperative = $ 2000 per kilowatt •

• Sulphur Springs Valley Electric Cooperative (SSVEC) = $ 2,000 per kilowatt

Other Incentives

In addition to above solar energy rebates offered by the Arizona utilities, the State of Arizona allows a tax credit of $ 1,000 for each resident who installs a solar energy system. The 30 percent Federal tax credit investment is also available for homeowners in Arizona. The amount of the federal tax credit is calculated before the owners deduct repayments of solar power and has no cap.

A Numbers Example to illustrate how solar rebates affect a purchase price, here’s a simple example for a system with six kilowatts solar for two major companies in Arizona.

Arizona Public Service / Tucson Electric Power
Cost for 6 Kilowatt System $27,000 / $27,000
State / Utility Rebate $750 x 6 =$4,500 / 6,000 x.60 = $3,600
Federal / State / Local
Tax Credits $6,750+$1,000 = $7,750 / $7,020+$1,000 = $8,020
Net Cost $14,750 / $15,38

Net Metering: The Icing on the Rebates Cake
In addition to solar energy rebates, net metering further reduces costs and provides benefits to homeowners. Net metering refers to the practice of selling your unused electricity from your solar power system back to the  utility company.

Homeowners do not need to have battery backups when connected to their utility. They simply pull electricity from the utility when their solar system doesn’t produce enough to meet their requirements, at night. If the homeowner has sold electricity back to the utility, they don’t have to pay for any utility power up to the amount they banked through net metering.

Unlike other states, Arizona utilities offer net unlimited. In other words, any number of clients may participate in net metering programs. The only requirement is the customers’ systems cannot generate more than 125 percent of their current electricity needs today.

If a homeowner system does generate over 100 percent of their electricity needs, the utility will pay the customer. Rates paid are dependent on the utility. But any cash back would decrease net system cost even further and be a pretty sweet deal.

The solar power rebates from utilities and other financial incentives make installing a solar electric system a great investment for most homeowners. To get the maximum rebate amount, the key is to take advantage of these rebates sooner rather than later.

About the Author

Rena Giannoulakis is responsible for marketing at American Solar, one of Arizona’s leading solar companies that designs and installs solar electric and solar water heaters. Visit there website for more information on rebates for solar energy.

Use and distribution of this article is subject to our guidelines Editeurpar which the original author’s information and copyright must be included.

Rena Giannoulakis


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