Solar water heating options for your business from SRP EarthWise Solar Energy

Costs may vary depending upon the contractor and materials you select.
Based on incentive of $0.45 per kWh.
The Arizona tax credit is 10% of the cost, capped at $25,000.
The federal tax credit is 30% of cost, with no cap. Consult a tax professional.
Savings are based on $1.28 per therm of natural gas. 1 therm = 29.3 kWh. 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. Consult a tax professional.
Savings are based on $1.28 per therm of natural gas. 1 therm = 29.3 kWh. 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.
Savings are based on $1.28 per therm of natural gas. 1 therm = 29.3 kWh. Does not include additional tax savings that may be possible through accelerated depreciation.

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

Reservation capacity
$333,650
$0 $1,500,000

Updated Feb. 7, 2012

SRP has dedicated $1.5 million in funding for the Commercial Solar Water Heater Program through April 30, 2012. Progress towards that goal is reflected in the reservation status bar on the right of the page.

Getting started

Step 1 - Review financial implications

It is important to review the financial implications before deciding to install a solar water heater. To ensure you choose what's best for your business, SRP offers the following options:

OG-300 rated solar water heater incentive

Commercial SRP customers who install an OG-300 rated solar water heater may qualify for an incentive payment of $0.45 per kilowatt-hour of the annual energy savings realized by the system. SRP bases the level of energy savings on the OG-300 rating of the system and the orientation of the solar collector panels. SRP provides prorated incentives for systems in which the solar collectors are not installed in an optimal location.

Here's an example to help you calculate the costs associated with the installation of a solar water heater once you take SRP's incentives and applicable tax credits into account.

Energy production Typical cost  SRP one-time incentive  Arizona tax credit  Federal tax credit  Net cost Annual savings  Simple payback
2,800 kWh per year $6,700 $1,260 $670 $2,010 $2,760 $234 12 years

 

Standard water heater incentive

Commercial SRP customers who install a solar water heater may qualify for an incentive payment of $0.45 per kWh of metered first year energy savings, up to $350,000.

Here's an example to help you calculate the costs associated with the installation of a solar water heater once you take SRP's incentives and applicable tax credits into account.

Energy production Typical cost  SRP solar incentive Arizona tax credit  Federal tax credit  Net cost Annual savings  Simple payback
81,000 kWh per year $90,000 $36,450 $9,000 $27,000 $17,550 $3,539 5 years

 

Pool solar water heater incentive

Commercial SRP customers who install a pool solar water heater may qualify for an incentive of $0.25 per kWh of metered first year energy savings, or $0.45 per kWh of metered first-year energy savings, if the panels are glazed, up to $350,000.

Here's an example to help you calculate the costs associated with the installation of an unglazed pool solar water heater once you take SRP's incentives and applicable tax credits into account.

Pool size Panel size Energy production Typical cost  SRP one-time incentive Arizona tax credit  Net cost Annual savings  Simple payback
1,500 sq. ft. 1,500 sq. ft. 70,000 kWh $40,000 $17,500 $4,000 $18,500 $3,058 6 years

 

Step 2 - Review process checklist

The following checklists 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 program requirements. The process typically takes 14 to 18 months from SRP's receipt of the completed application package until the incentive is issued but can vary based on project specifics.

Step 3 - Select a contractor

Once you have determined that installing a solar water heater makes sense for your business, you will need to select a licensed solar water heater 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 Water Heater 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 the SRP EarthWise Commercial Solar Water Heater Program, please contact a solar representative at (602) 236-4664.

SRP EarthWise Solar Energy is also available to residential customers.

Information for contractors

Contractors can find more specific information about the process and associated requirements of SRP's Commercial Solar Water Heater Program.