Save up to $500 on solar with Duncan Valley Electric Cooperative (DVEC)
Summary of solar rebates available to DVEC customers
|Federal tax credit||30% off system price|
|Arizona Department of Revenue Credit for Solar Energy Devices||25% off system price, up to $1,000|
|DVEC SunWatts rebate||$0.05 per watt, up to $500|
The Duncan Valley Electric Cooperative, which serves Graham and Greenlee Counties in Arizona and Grant and Hidalgo counties in New Mexico, has a generous incentive program to help homeowners go solar.
With this rebate, the Arizona Department of Revenue Credit for solar (valued up to $1,000), and the federal tax credit for solar, this means that DVEC customers can collect some of the best solar photovoltaic rebates in the country.
DVEC SunWatts rebate amount
The DVEC rebate for renewable energy systems (which includes solar photovoltaic and small wind) is valued at 5 cents per watt, up to $500. This means that a 5 kW system will get you a $250 rebate, and a 10 kW system will earn the maximum $500.
Solar thermal water heating systems are also eligible. The rebate for solar thermal is calculated not by the system size, but by the system performance in the first year. For every kilowatt-hour saved in the first year of system operation, you will get a rebate of $0.50.
Does DVEC offer net metering?
No, DVEC offers net billing to its customers. This means that you will receive a partial credit for excess solar electricity that you send into the grid. This credit is called the Annual Export Rate (AER).The AER is scheduled to step down over time. This is the current schedule:
|Date||Credit per kWh|
|October 1, 2018 – September 30, 2019 (Initial Rate)||$0.07952|
|October 1, 2019 - September 30, 2020||$0.07157|
|October 1, 2020 – September 30, 2021||$0.06441|
|October 1, 2021 - September 30, 2022||$0.05797|
|October 1, 2022 - September 30, 2023||$0.05217|
|October 1, 2023 - September 30, 2024||$0.04696|
|October 1, 2024 - until changed by Arizona Corporation Commission||$0.04231|
How to apply
To get the rebate, work with a qualified solar installer in the DVEC service area. You can use our free service to get multiple quotes from prescreened solar installers.
For more information, also visit the DVEC website.
Arizona Department of Revenue solar tax credit
Arizona taxpayers who install solar panels on their home can get a tax credit worth up to $1,000. This is on top of the federal tax credit and local incentives like the DVEC SunWatts rebate, so added together you can save a significant amount of money on your home solar panels.
How is the tax credit calculated?
The Arizona Credit for Solar Energy Devices is a tax credit calculated as 25% of the total cost of the system, including parts and labor. Its calculated before any other incentives are deducted. The maximum credit is $1,000.
If your state tax bill is less than your solar tax credit, you can roll over your unused credits to the next year. In fact, you can roll over your credits for as many as five years, giving you plenty of time to make sure that your credits don’t go to waste.
What is eligible?
According to the Arizona Department of Revenue, solar panels and related equipment including racking, inverters, and batteries are eligible for the tax credit. Other renewable energy technologies are eligible as well. Here’s the full list of equipment that qualifies for the tax credit:
The following devices, when used for residential purposes, qualify for the credit:
- Solar domestic water heating systems - collectors, storage tanks, heat exchangers, and piping, valves, wiring, etc., directly related to the solar system.
- Solar swimming pool and spa heating systems - collectors, heat exchangers, piping, valves, wiring, etc., directly related to the solar system.
- Solar photovoltaic systems - collectors, batteries, inverters, solar system related wiring, and including solar photovoltaic systems for recreational vehicles used as a residence. End-use appliances (even if they are 12 vdc) are excluded unless they are manufactured specifically for photovoltaic systems applications.
- Solar photovoltaic phones, street lighting, etc. - collectors, batteries, inverters, and solar system related wiring. Phone, lights, etc., are excluded unless they are manufactured specifically for photovoltaic applications.
- Passive solar building systems - trombe wall components, thermal mass, and components specifically designed for energy gains. Dual pane windows, low-e, and other window coatings, etc., are excluded.
- Solar day lighting systems - those devices and systems specifically designed to capture and redirect visible solar energy while controlling the infrared energy (conventional skylights are specifically excluded).
- Wind generators - windmill, structure, generator, batteries, controls, wiring, and other components directly related to the wind generator. End-use appliances are excluded.
- Wind-powered pumps - windmill, structure, pump, pipes, and other components directly related to the wind pump.
How do I apply for the tax credit?
You apply for the solar credit at tax time. Keep in mind that means you will need to pay for the cost of the system upfront, and wait until tax time rolls around before you can get your money back. Keep that in mind if you are paying cash for your system.
Arizona Form 310 is the relevant form for this credit. Read the associated instructions for further information.
Does it make sense to go solar in Arizona?
There are two big reasons why people choose to add solar panels to their house: it saves them money on electricity in the long run, and it helps the environment.
The average price of electricity in Arizona
For homeowners, the retail price of electricity will vary with your electricity provider - sometimes by a lot. But the average retail price of residential electricity in Arizona is 11.47 cents per kilowatt hour.
This is a little less expensive than the average price of residential electricity in the United States of 12 cents per kilowatt hour.
What does the price of electricity have to do with your decision to go solar? Well, the more expensive your electricity is, the more compelling solar power is because high bills mean that solar panels will pay for themselves quicker.
In Arizona, the cost of electricity is a little less than the United States average. At first, this might seem to make solar less compelling. But of course Arizona is a hot climate, and air conditioning is a necessary part of everyday life for many Arizonans.
Air conditioners are big energy hogs, with home central AC units using a few kilowatts of power when they’re operating. Because of this, electricity use in Arizona is higher than average - the average monthly bill in Arizona is $128.
If you’re one of those people with high electricity bills, and especially if you have large energy consumers in your home like air conditioning, then you should definitely consider home solar.
How much solar electricity can I generate in Arizona?
Solar power generation depends on having lots of sunlight, but that doesn’t mean that only southern regions are good for solar. It also depends on cloud cover, and in general the western regions of the United States tend to have lots of sun.
The solar energy potential will vary across the state, although the average across Arizona is excellent.
To find out how well your home solar energy system will perform, use The Solar Nerd calculator to estimate your power generation and the price of a system in your area, including rebates.