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Incentives/Policies for Renewables & Efficiency

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APS - Renewable Energy Incentive Program   

Last DSIRE Review: 02/05/2013
Program Overview:
State: Arizona
Incentive Type: Utility Rebate Program
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Geothermal Electric, Geothermal Heat Pumps, Solar HVAC, Solar Pool Heating, Daylighting
Applicable Sectors: Commercial, Residential
Amount:Residential and Small Commercial PV (up to 25 kW): $0.10/watt-DC
Residential Solar Water Heating: $0.40/kWh-displaced
Residential Solar Space Heating: $0.50/kWh-displaced
Residential Geothermal Space Heating: $0.80/kWh savings
Residential and Small Commercial Wind: $2.25/W-DC
Commercial Solar Water Heating (Small Systems): $0.68/kWh savings based on OG-300 rating
Commercial Solar Water Heating (Large Systems): $0.41/kWh savings based on OG-100 rating
Commercial Solar Pool Heating: $0.09/kWh displaced
Commercial Solar Process / Space Cooling: $0.90/kWh displaced
Commercial Solar Process / Space Heating: $0.41/kWh displaced
Commercial Solar Daylighting: $0.18/kWh displaced
Commercial Geothermal Process / Space Cooling: $0.90/kWh displaced
PV installed on Schools: $0.09/kWh (15 years) or $0.085/kWh (20 years)
Maximum Incentive:Residential systems: $50,000 or 50% of system costs, whichever is less
Commercial systems: $75, 000 or 40% of system costs, whichever is less
Equipment Requirements:Domestic solar water heating systems must be tested and certified to the OG- 300 standard by the SRCC or an APS approved NRTL or ANSI and have a rating that is accompanied by the certified system design schematic.
Large solar water heating and other solar thermal panels must be OG-100 certified.
Installation Requirements:PV systems must be installed by a licensed contractor holding one or more of the following certifications with the Arizona Registrar of Contractors: C-11, K-11, L-11.
SWH systems must be installed by a licensed contractor holding one or more of the following certifications with the Arizona Registrar of Contractors, C-37, C-37R, K-77, K-78, L-77, L-78.
Ownership of Renewable Energy Credits:APS
Funding Source:RES Surchage
Web Site:

Note: The Arizona Corporation Commission (ACC) recently approved modifications to some elements of this program. Performance-based incentives, which had previously been available for larger renewable energy systems have been terminated. Only upfront incentives for smaller systems are now available.

Through the Renewable Incentive Program, Arizona Public Service (APS) offers customers who install various renewable energy systems the opportunity to sell the renewable energy credits (RECs) associated with the energy generated to APS. APS uses the RECs to demnstrate compliance with the state's Renewable Energy Standard (RES). The solar technologies eligible for a rebate include photovoltaic (PV), solar hot water, solar HVAC and solar daylighting systems. Up-front incentives for PV may be de-rated based on expected performance. All electricity-producing systems must be connected to the grid. 

See web site above for complete details. 

  Credit Purchase Program Customer Service Line
Arizona Public Service Company
Solar Energy Services
Mail Station 3161
P.O. Box 53933
Phoenix, AZ 85072-3999
Phone: (602) 328-1924
Fax: (602) 250-2724
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.