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Arizona’s tax credit for solar and wind installations in commercial and industrial applications was established in June 2006 ([http://www.azleg.gov/legtext/47leg/2r/bills/hb2429s.pdf HB 2429]). In May 2007, the credit was revised by [http://www.azleg.gov/legtext/48leg/1r/bills/hb2491h.pdf HB 2491] to extend the credit to all non-residential entities, including those that are tax-exempt.

The Arizona Corporation Commission requires electric utilities to conduct a cost/benefit analysis to compare the cost of line extension with the cost of installing a stand-alone photovoltaic (PV) system for remote locations with electricity needs. This ruling applies to Arizona Public Service (APS), Tucson Electric Power (TEP), Arizona Electric Power Cooperative and Navopache Electric Cooperative.

In an effort to promote uniformity, the Maricopa Association of Governments (MAG) approved standard procedures for securing necessary electrical/building permits for residential (single-family) and commercial PV systems. These procedures are a part of the MAG Building Code Standards. The standards address requirements for the solar installation, plans, diagrams, applicable warnings, and signage. The same standards were adopted by the City of Scottsdale, although many other cities in the Phoenix area are using them as well.

The Maricopa County Zoning Ordinance contains provisions for siting renewable energy systems. The ordinance defines renewable energy as "energy derived primarily from sources other than fossil fuels or nuclear fission." Renewable energy systems may be built in any zoning district within the county as long as certain siting requirements are met.

Setbacks: Renewable energy systems must be set back at least 3 feet away from the side or rear lot lines. Setback requirements for front lot lines and for corner lots vary by zoning district.

'''''Note: In June 2007, the Arizona Corporation Commission (ACC) initiated a rulemaking process to establish statewide interconnection standards for distributed generation (DG). This proceeding is still in progress. Until the new official rules go into effect, the commission has recommended that the utilities use the [http://images.edocket.azcc.gov/docketpdf/0000074361.pdf Interconnection Document] as a guide. This document applies to systems up to 10 megawatts (MW) in capacity. '''''

Duncan Valley Electric Cooperative is providing rebates to for the purchase of renewable energy systems through its SunWatts program. Photovoltaic (PV) and wind energy systems 10 kilowatts (kW) or less can receive an upfront rebate of $3.00 per watt, up to 40% of the system's cost. Solar water heating systems can receive a rebate of $0.75 per kilowatt-hour (kWh) of estimated energy savings in the first year. PV and wind systems larger than 10 kW and other renewable energy types may be eligible for a performance-based incentive awarded on a competitive basis.

Electric District No. 3 of Pinal County (ED3) provides incentives for their residential and business customers to invest in photovoltaics (PV). Residential and commercial customers installing PV systems up to 10 kilowatts (kW) in capacity may be eligible for rebates of $0.20 per watt. Commercial customers can install PV systems up to 20 kW in capacity. In no case can the rebate be greater than 50% of the installed cost. Equipment requirements and other details are available through the link above.

Electricity Standard

Arizona has some requirements for their buildings contained within their statutes. A.R.S. § 34-451 requires the Department of Administration, the Department of Transportation and the Arizona Board of Regents to reduce their energy use by 15% by July 1, 2011 using July 1, 2001 through June 30, 2002 as the baseline year. As a whole, the three building systems reduced their energy usage on a BTU per square foot basis by 15.8%, meeting the reqirements of the statute.

Arizona’s property tax exemption was established in June 2006 ([http://www.azleg.gov/legtext/47leg/2r/bills/hb2429s.pdf HB 2429]) and originally applied only to “solar energy devices and any other device or system designed for the production of solar energy for on-site consumption.” For property tax assessment purposes, these devices are considered to add no value to the property.