With a large number of applications for its solar photovoltaic (PV) rebate program in Arizona, Tucson Electric Power (TEP) in July filed a request with state regulators to reduce the per-watt amount on offer. On August 25, the Arizona Corporation Commission (ACC) approved the request, making the rebate reduction effective retroactively from August 11.

The lower per-watt solar rebate will enable TEP to keep the incentive program funded through the end of the year. Originally, the rebate program for PV residential systems stood at $3.00 per watt. After the reduction, the rebate now stands at $2.00 per watt. The rebate for PV commercial systems when the program began was $2.50 per watt. Now, the rebate for such systems is $1.75 per watt, and will soon be reduced to $1.50 per watt.

Second, the cost of installing solar PV in Arizona has come down considerably over the past 18 months. Because home solar electric systems cost relatively less, the amount of incentive dollars available to promote the adoption of solar power should likewise be brought down.

Even at the new level, Tuscon solar rebates still represent a great deal when compared to rebate programs in many other parts of the country.

There is a maximum incentive for the Arizona solar rebate. When it comes to residential solar power systems, for instance, the rebates only apply to the first 20 kilowatts (kW).  You can find Arizona Solar Installation information here.