Tucson Electric Power Rebate
Tucson Electric Power Company offers the up-Front Incentives (UFI) which provides customers a one-time payment based on their system rating, which is in kWh savings. In turn the customer would sign a credit purchase agreement assigning TEP the Renewable Energy Credits (REC) for 20 years. To qualify for the UFI your system must have at least a 10-year manufacturer's warranty. The rebate offers a maximum of $1,750.00 for SRCC OG-300 rated systems. The rebate will cover a maximum of 85% of system cost, including the state and federal tax credits.

State Tax Credit
The Arizona state income tax credit is 25% and is capped at $1,000. This credit must be shared with other qualifying solar devices (it has a one time per residence limit). There is also a sales tax waiver for solar hot water systems, so you pay no state sales tax on your system.

Federal Tax Credit
The federal solar tax credit is a 30% credit off income taxes. There is a $2,000 cap. The credit is currently set to expire December 31, 2016. This credit can be taken in addition to the federal tax credit for photovoltaic systems.