storage incentives

Arizona energy storage rebates and incentives

The Grand Canyon State is home to one of the most beautiful natural wonders in the world – it’s also home to a growing energy storage market. Thanks to declining costs, federal tax incentives, and–for Salt River Project customers–utility programs, energy storage systems are quickly becoming a popular home improvement purchase for property owners from Phoenix to Tuscon to Flagstaff.

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What storage incentives are available in Arizona?

Arizona does not currently have any statewide energy storage incentives. However, Salt River Project (SRP) electricity customers can count themselves lucky: this utility company has a rebate program that can help homeowners save thousands on an energy storage system.

SRP Battery Storage Incentive

Are you an SRP electricity customer? If so, you can save big on a battery purchase with their storage incentive program.

The utility company is currently offering a limited-time rebate of $300 per kilowatt-hour (kWh) (up to $3,600) for customers who install a home battery and agree to participate in their battery research study. For an LG Chem RESU 10H battery, this comes out to $2,790.

You do not need to pair your storage system with solar panels in order to receive this incentive. However, only lithium-ion storage technologies with UL 1973 or UL 9540 are eligible for the rebate.

Arizona tax benefits for energy storage

Arizonans installing a solar-plus-storage system can save thousands on their taxes with the federal investment tax credit (ITC).

The federal investment tax credit (ITC)

With the federal investment tax credit (ITC), you can claim up to 30 percent of the cost of your solar battery as a credit towards your federal taxes. For most homeowners, the ITC can help decrease the cost of a battery by an additional $3,000 to $4,000.

Importantly, standalone storage is not currently eligible for this credit – but it will be starting in 2023 thanks to the Inflation Reduction Act! To claim this incentive for the remainder of 2022, you need to charge your battery with an on-site renewable energy source (like rooftop solar). If you have a residential solar panel system and you charge your battery with electricity from the grid, you cannot take advantage of this credit right now.

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