Solar water heating for your home

$10,800 $0

There is $10,800 in incentive funds available for the fiscal year that ends April 30, 2022.

Updated May 17, 2021

The SRP Residential Solar Water Heating Program is designed to help you reduce your energy usage. Only electric backup systems are eligible for the program.

SRP has dedicated $10,800 in funding for the Residential Solar Water Heating Program through April 30, 2022. Progress towards that goal is reflected in the reservation status bar on the right of the page.

Please note: Contractors agree to apply the SRP incentive at the time of purchase to reduce the total installed system price by the amount of the SRP incentive. After the application process has been completed, SRP will issue the incentive payment to the contractor on the customer's behalf. SRP customers will still receive the benefit of the incentive and, therefore, will receive an IRS 1099 MISC form for tax purposes.

Getting started

If your home is a good candidate, it is important to review the financial implications before deciding to install a solar water heater. Residential SRP customers who install a solar water heater may qualify for an incentive payment of $0.30 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 ($0.24 per kWh) 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.

Typical cost  SRP solar incentive  Arizona tax credit  Federal tax credit  Net cost Annual savings  Simple payback
2,800 kWh per year $7,000 $857 $1,000 $1,820 $3,323 $275 12 years

The SRP Residential Solar Water Heating 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 program requirements Document is a PDF. The process typically takes up to two months from SRP's receipt of the completed application package until the incentive is issued, but can vary based on project specifics.

Once you have determined that installing a solar water heater makes sense, you will need to select a licensed solar water heater dealer and installer. Get advice to help you make an educated choice and use the Solar Contractor Bid Comparison Form Document is a PDF to evaluate your options.

Once selected, your contractor will help you complete and submit all necessary paperwork to SRP, including the Solar Water Heating Application Document is a PDF. You will also fill out a Bill of Sale Form Document is a PDF. SRP offers an incentive in exchange for the environmental attributes. If changes to any portion of the application package are made after the approval, the customer or their contrator must submit a Residential Solar Water Heating Application Addendum Document is a PDF.

After your solar water heater is installed, your contractor will need to request an inspection from the governmental agency with jurisdiction (AHJ). If the applicable AHJ does not require building permits or inspections for installation or significant modification to a plumbing system on a customer's property, the contractor must submit a Certificate In Lieu of Plumbing Clearance (CILC) Document is a PDF to SRP. Both the customer and contractor must sign the CILC.

Frequently asked questions

Find answers to your questions in our solar water heating FAQ.

Solar installations in your neighborhood

Learn more about the status of solar installations throughout Arizona at

Contact us

If you have questions about the SRP Residential Solar Water Heating Program, please contact a solar representative at (602) 236-4448.

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