Through solar power rebates, many states, including Arizona

Each Arizona utility has its own program for solar power rebates. The programs not only differ by utility, but each utility's program will change over time as certain rebate payment milestones are reached. Various caps exist to encourage homeowners to install solar energy systems sooner rather than later. Current solar power rebates at Arizona utilities range from $750 per kilowatt to $2,000 per kilowatt - note the average system size is 7.5 kilowatts. As of March 2012, the following rebates are in place at Arizona utility companies: Other Incentives In addition to the above solar power rebates offered by Arizona utilities, the State of Arizona allows a $1,000 tax credit for every resident who installs a solar energy system. The 30 percent Federal Investment Tax Credit is also available to Arizona homeowners. The federal tax credit amount is calculated before homeowners deduct their solar power rebates and has no cap. A Numbers Example To illustrate how solar power rebates affect a purchase price, here's a simple example for a six kilowatt solar system for two major Arizona utilities. Arizona Public Service Tucson Electric Power Cost for 6 Kilowatt System $27,000 $27,000 State / Utility Rebate $750 x 6 =$4,500 6,000 x .60 = $3,600 Federal / State / Local Tax Credits $6,750+$1,000 = $7,750 $7,020+$1,000 = $8,020 Net Cost $14,750 $15,380 Net Metering: The Icing on the Rebates Cake In addition to solar power rebates, net metering further reduces costs and provides benefits to homeowners. Net metering refers to the practice of 'selling' your unused electricity from your solar electric system back to the utility. Homeowners don't need to have battery backups when connected to their utility. They simply pull electricity from the utility when their solar system doesn't produce enough to meet their requirements. And, if the homeowner has sold electricity back to the utility, they don't have to pay for any utility power up to the amount they've banked through net metering. Unlike other states, Arizona utilities offer net without limit. In other words, any number of customers can participate in net metering programs. The only stipulation is customer systems cannot generate more than 125 percent of their current electricity needs. And, if a homeowner's system does generate over 100 percent of their electricity needs, the utility will pay the customer. Rates paid are dependent on the utility. . But any cash back would decrease net system cost even further and be a pretty sweet deal. The solar power rebates from utilities and other financial incentives make installing a solar electric system a great investment for most homeowners. To get the maximum rebate amount, the key is to take advantage of these rebates sooner rather than later.