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Incentives/Policies for Renewables & Efficiency

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SRP - Solar Electric Program   

Last DSIRE Review: 10/14/2014
Program Overview:
State: Arizona
Incentive Type: Utility Rebate Program
Eligible Renewable/Other Technologies: Solar Water Heat, Photovoltaics
Applicable Sectors: Commercial, Residential, Nonprofit, Schools, Local Government, State Government, Tribal Government, Fed. Government, (SRP territory)
Amount:Incentive Levels as of May 1, 2014:
Residential PV: $0.05/W
Non-residential PV: $0.05/kWh
Residential solar water heaters: $0.30/kWh for annual estimated energy savings (based on SRCC rating)
Maximum Incentive:Residential PV: $250
Non-residential PV: $15,000
Eligible System Size:Residential incentives are capped at 5 kW (DC)
Commercial PV systems must be less than 1,000 kW (DC)
Equipment Requirements:PV: Modules must be UL-listed. Inverters must be tested to UL 1741.
Solar water heating systems: must be OG-300 certified by a third party entity approved by SRP and must be installed per the rating agency’s qualifications and standards.
Installation Requirements:Must be installed by a properly licensed contractor.
Ownership of Renewable Energy Credits:SRP
Web Site:
NOTE: SRP reopened its incentive programs effective May 1, 2013. For the 2015 fiscal year, SRP has funding available for 12 MW of residential photovoltaic (PV) systems, 3 MW of small commercial PV systems, and 3 MW of nonprofit, school, and government PV. $504,000 is available for residential solar water heaters. All incentive rates will step down over time as participation goals are met.   
SRP's Solar Electric Program provides incentives to its residential and commercial customers to purchase PV or solar water-heating systems. In exchange for the incentives, SRP will receive all the renewable energy credits (RECs) associated with the systems. SRP's Board of Directors increased its self-imposed goal in 2011 of having 20% of their retail sales come from sustainable resources by 2020, mirroring the renewable energy standard that other Arizona utilities are required to meet. The RECs that SRP receives through the Solar Electric Program will help the utility meet this goal.

Residential Incentives

SRP has funding for a total of 12 MW of residential PV systems for May 1, 2014 through April 30, 2015. Incentive rates are currently set at $0.05 per watt (up to 5 kilowatts) and will step down over time as participation goals are met. Of the 12 MW, 10.75 MW has been reserved for solar on existing homes, and 1.25 MW has been reserved for new home construction. 

The incentive for residential solar water heating systems is $0.30 per kilowatt hour (kWh) of estimated annual energy savings. Incentives are prorated for systems with solar collectors installed in sub-optimal locations. As of May 1, 2013, only electric backup systems are eligible for this incentive. The energy savings are estimated based on an OG-300 rating.

Non-residential Incentives

SRP has funding for a total of 3 MW of business or commercial PV systems for May 1, 2014 through April 30, 2015, and another 3 MW of PV for nonprofits, schools, and governments. The incentive amount is $0.05 per watt, up to $15,000. Incentives will step down over time as participation goals are met. 


  Earthwise Solar Energy Program
Mail Stop PAB355
P.O. Box 52025
Phoenix, AZ 85072-2025
Phone: (602) 236-4448
Phone 2: (602) 236-8888
Web Site:
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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 2014 - 2015 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.