Solar electricity for your business

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Costs may vary depending upon the contractor and materials you select.

SRP one-time incentive may be considered taxable income. Please consult a tax professional.

The Arizona tax credit is 10% of the cost, capped at $25,000.

The federal tax credit is 30% of cost, with no cap. It expires in 2016.

Savings are calculated based on an annual solar energy production of 1,600 kWh per kW-DC at $0.081 per kWh, and will vary based on the size of the system installed, orientation and energy consumption.

Does not include additional tax savings that may be possible through accelerated depreciation.

Costs may vary depending upon the contractor and materials you select.

The Arizona tax credit is 10% of the cost, capped at $25,000.

The federal tax credit is 30% of cost, with no cap. It expires in 2016.

The $0.04 per kilowatt hour incentive corresponds to a system with an annual energy production of 1,600 kWh per kW-DC. Actual incentive based on performance of the system. SRP annual incentive may be considered taxable income. Please consult a tax professional.

Savings are calculated based on an annual solar energy production of 1,600 kWh per kW-DC at $0.081 per kWh, and will vary based on the size of the system installed, orientation and energy consumption.

Does not include
additional tax savings that
may be possible through
accelerated depreciation.

The SRP Commercial Solar Electric Program is designed to help encourage investment in solar technology by helping reduce the system's cost.

Getting started

Step 1 - Review financial implications

It is important to review the financial implications before deciding to install a solar electric system. The ultimate out-of-pocket cost will depend on whether you purchase the system outright, obtain a loan, or lease the system. Examine all of your options in order to choose the financing method that best fits with your overall business plan.

SRP offers commercial customers the following options for a solar installation:

Solar electric system incentives

Solar for businesses

Reservation capacity (MW)
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Updated Aug. 25, 2014

SRP has set aside funding for 6 megawatts (MW) of incentives for customers for the Fiscal Year 2015 (May 1, 2014 – April 30, 2015). The incentive structure is as follows:

  • $0.05 per watt up to $15,000

3MW of the incentive is for business and commercial installations. The other 3MW are reserved for schools, nonprofits and government entities.

Progress towards the 6 MW goal is reflected in the reservation status bar on the right of the page.

Solar for nonprofits

Reservation capacity (MW)
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Updated Aug. 25, 2014

Here's an example to help you calculate the costs associated with the installation of a solar electric system if you were to purchase your system outright and receive SRP's incentives and applicable tax credits. Depending on your financing method, there may be other costs to take into account such as loan/lease payments and termination clauses.

Size Typical cost  SRP solar incentive  Arizona tax credit  Federal tax credit  Net cost Annual savings  Simple payback
50 kW $225,000 $2,500 $22,500 $67,500 $132,500 $6,480 20 years

You can also see the cost per watt ranges for solar electric systems here.

Step 2 - Review process checklist

The SRP Commercial Solar Electric Process Checklist Document is a PDF will walk you through the steps you will need to follow in order to qualify for an SRP incentive.

Please be sure to review the Commercial Solar Electric Program Requirements Document is a PDF. The process typically takes 5-8 months from SRP's receipt of the completed application package until the incentive is issued but can vary based on project specifics.

Step 3 - Review interconnection agreements

Be sure that you review and understand the following sample agreements. You will be required to sign this agreement before interconnecting your solar electric system:

Step 4 - Select a contractor

Once you have determined that installing a solar electric system makes sense for your business, you will need to select a licensed solar electric installer. Get advice to help you make an educated choice.

Once selected, your contractor will help you complete and submit all necessary paperwork to SRP.

Frequently asked questions

Find answers to your questions about SRP's Commercial Solar Electric Program.

Solar installations in your area

Learn more about the status of solar installations throughout Arizona at www.arizonagoessolar.org.

Contact us

If you have questions about SRP's Commercial Solar Electric Program, please contact a solar representative at (602) 236-4663.

SRP Solar Energy is also available to residential customers.

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