Solar Panels Cost $7.8k-$15k in Arizona | February, 2025

The Salt River Project's Solar Water Heating program provides incentives to encourage its residential customers to purchase solar water heating systems as back-ups to their electric systems, in hopes that the residential customers will use the renewable energy systems in preference to their familiar systems. The usual incentive for residential solar water heating systems is $0.30 per kilowatt-hour of the estimated annual energy savings, determined by calculating current use to determine estimated use for the next year. The incentives are pro-rated ($0.24 per kilowatt-hour) for systems where solar collectors are installed in sub-optimal locations, such as shady areas.

The City of Tucson requires several permits for solar farms. This table shows all of the relevant information about the applicable regulations that apply to anyone looking to establish a large solar facility. For example, permits are required for groundwater/surface water management, review for the site/development plan, preconstruction, and the electrical permit. Permits last one day or 14 months, depending on the specific permit, so pay attention to the dates on each permit and mark them on a calendar to avoid confusion. It should be noted that some permits may not be needed, so check with the appropriate agency before paying for a permit.

The SunWatts program offers home and business owners incentives for purchasing solar water heating systems. The ideal is that residential and business customers of various companies will take advantage of the incentives offered through the SunWatts program and upgrade their homes. Also, the solar water heating systems may encourage the homeowners and business owners to try other renewable energy systems, especially once they see how much the heating systems save them. Systems must meet all program requirements, and incentives are usually available through local companies. See the SunWatts program website for complete details on rebates offered and other incentives.

The Phoenix City Council approved a renewable energy goal for the city in 2008. The goal is for 15% of the city's electricity to come from renewable sources by 2025 and mirrors the state's Renewable Energy Standard. It plans to accomplish this renewable energy installation, which is city-owned or city-sponsored, mostly through public-private partnerships. The city council will review periodically the progress towards the goal, setting milestones to track progress. The Environmental Quality Commission and Public Works Department collaborated to develop the recommendation. Phoenix recently expanded its sustainability goals, which also include becoming carbon-neutral by 2060. The paper laying out these goals can be found at https://www.phoenix.gov/sustainabilitysite/Documents/COP_028%20Sustainability%20Brochure12%2C%20Feb%202017.pdf.

A 2014 act of the Arizona legislature created tax incentives on new solar, wind, or other renewable energy systems used to power "international operations centers." To qualify for the credit, systems should be rated for at least 20 MW of generation capacity or produce 40,000 megawatt hours of electricity per year. "International operations center" certification is obtained through ten years of investment records in new Arizona-located capital. Additional information is available from the state department of revenue.

The Arizona Registrar of Contractors does not offer a general solar electric contractor license, but the state's R-11 and C-11 electric licenses cover solar electric installations. The Registrar also has licenses for solar water heaters. There are also licenses for space heating and cooling systems, including solar thermal systems. For those interested in working with pools that include a solar pool heating system, there is another license. All contractors that work with solar energy systems must have four years of applicable work experience and pass an exam in order to obtain a license in Arizona.

The Trico Electric Cooperative offers its residential and business customers a rebate for installing solar water heaters into their homes and businesses, thus helping to encourage the use of sustainable energy in those homes and businesses. Rebates equal $.40 per kilowatt that is expected to be saved in the first year of the use of solar water heating systems, as compared to the systems that they are used to using to heat their water. The rebates are offered through the SunWatts program, and should encourage its residential and business customers to look for another way to use renewable energy sources in their homes and businesses.

In June 2008, Chandler, Arizona, adopted Resolution 4199, establishing an ordinance requiring all newly occupied city buildings larger than 5000 square feet to be designed to achieve the Silver Level of the Leadership in Energy and Environmental Design certification program, striving for higher certification levels whenever project resources permit. City projects may be exempt from the payback necessary to recover the initial cost if it takes more than ten years to recoup costs. If it is deemed infeasible, then the project shall follow as many of the LEED principles as possible. Additionally, buildings smaller than 5000 square feet must include as many of the principles as possible.

Scotsdale approved a green building policy for new city buildings and remodels in 2005. All newly occupied buildings of any size are to be designed, contracted, and built to achieve Gold certification by the principles of the US Green Building Council's Leadership in Energy and Environmental Design program. Where the payback is anticipated to take more than five years, the city staff may recommend which level of LEED certification is appropriate for the building in question. In addition, ll renovation to non-occupied buildings will be designed, contracted, and built with as many of the LEED principals as is feasible.

The Arizona Corporation Commission is debating changes to the state's Renewable Energy Standard to expand the standard to 15% by 2025, with 30% of the renewable energy coming from distributed energy technologies. The new rules were certified as constitutional and were allowed to go forward. Prior to the 2006 rules, Arizona's original Environmental Portfolio Standard required Arizona 0.4% of its energy from renewable sources; this was increased incrementally to 60% by 2012. The RES should allow Arizona to meet its goals, and to eventually see more of its energy needs being met by renewable energy sources.

The Maricopa Association of Governments passed permit submission requirements for residential solar domestic water heating systems on June 18, 2003, in an effort to promote uniformity. Prior to passing the permit submission requirements, consumers were seeing different standards and procedures that varied from installer to installer; this made the installation of a new system or repair of the old one difficult. By enforcing the requirements they were able to help put a lid on the chaos. The MAG is a council of governments that serves as the regional agency for the metropolitan Phoenix area. The standards were revised in May 2012.

The Maricopa County zoning ordinances provide for siting renewable energy systems. Renewable energy systems other than utility-scale electric generating facilities are allowed as an accessory use within any zoning district provided certain requirements are met and that any water used in the production of renewable energy systems is from a renewable water source. The ordinances also cover photovoltaic and other solar sources in yards, such as whether or not they constitute an increase in lot coverage, height limitations, and that inoperable systems must be removed within a year.

The Scottsdale Green Building Program was the first such program with an emphasis on residential home construction. Established in 1998, it encourages environmentally responsible building in the Sonoran Desert. The program's goals are to reduce the impact of building, achieve both the long and short-term savings of energy, water, and other natural resources, and encourage a healthier indoor environment. Incentives include green building permits and inspections, technical assistance, monthly lectures, recognition on the website, free promotional materials, and a homeowner manual; depending on criteria, homeowners can be designated as either basic or advanced. Projects must complete a Green Home Rating Checklist to qualify for incentives.

The Salt River Project modified its net-metering program for residential customers in February 2015. Effective with the April 2015 billing cycle, residential customers who generate part of the electricity onsite are billed under the Customer Generation Price Plan. Customers that have purchased their distributed energy system or signed a lease agreement before December 8, 2014, may keep their original plan for twenty years. Net-metering allows customers discounts on the energy bill if they produce more electricity than they use. While the Arizona Corporation Commission adopted net-metering rules in October 2008, the state's rules do not apply to Salt River Project customers.

Pima County has established its standards for solar and wind systems. In general, owners of such systems must provide the county with schematics of the systems. The general requirements include cut sheets for all systems equipment and a site plan. Photovoltaic systems must have a one-line diagram showing conductor and conduit sizes and types. For more information on photovoltaic system requirements, check here. Note that solar hot water heating systems require a schematic that includes a temperature relief valve. Residential lots are allowed one tower per lot for wind energy systems. Depending on the project scope, it may need permission from the Regional Flood Control District.

The Arizona Corporation Commission initiated a rule-making process to establish statewide interconnection standards for distributed generation. The proceedings are still in effect, and the commission has recommended that the utilities use the Interconnection Document as a guide. The state's utilities developed interconnection agreements prior to the ACC's ongoing proceedings. Each utility has adopted its own standards, sometimes based on different metrics than other utilities. It is likely that Arizona's regulated utilities will adopt the ACC's interconnection standards when the final rules are adopted in order to provide a system that will enable all utilities to provide consistent service across the state.

The City of Phoenix offers permit plans for photovoltaic use. More specific information can be found in the city's application found here. For every option listed, the existing electric service will remain and the installer must be present for any inspection. Option A: Over-the-counter review, $600 plan review with three inspections. Option B: Over-the-counter review, $450 plan review, and two inspections. Option C: No plan review, $375 administrative fee, and two inspections. Option D: Over-the-counter review, $300 plan review, and one inspection. Option E: No plan review, $225 administrative fee, and one inspection.

S.B. 1484 of 2014 provides a tax credit for renewable energy systems used in manufacturing that produce energy. H.B. 2528 of 2017 removes manufacturer eligibility in 2018. Eligible systems must be capable of creating at least 20 megawatts of energy or a typical annual generation of at least 40,000 megawatt-hours. The tax credit of $5 million per year for five years for each facility. Taxpayers must apply to the Department of Revenue; the sooner you apply the better as when the $10 million is gone it is gone.

In June 2008, Tuscon adopted an ordinance that requires all new single single-family homes and duplexes to be solar-ready. The ordinance was developed by a stakeholder group. New homes must either have a photovoltaic or solar water heating system installed or have the necessary hardware on hand so that such a system can be installed at a later date. This latter option allows a home to have some of the piping installed so that later installation is not that expensive. These requirements may be waived if it can be sufficiently demonstrated to a building official that compliance is not practical due to shading, building orientation, construction constraints, or the configuration of the parcel of land.