Incentives & Rebates

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Water heating is one of your home’s biggest energy users. A solar water heater can cut water heating costs in half.

The CPS Energy Solar Water Heater rebate can only be used if the solar heater is replacing an electric water heater. The estimated number of kWh saved annually will be multiplied by a rate of $0.60. Rebates for solar water heating systems will have a maximum allowable rebate amount of $2,000.


The CPS Energy Solar Initiative Rebate The new $.60 per Watt rebate, slated to begin at the ends of February, will include an extra $.08 and $.02 per Watt incentive if customers select locally made modules (from Mission Solar) and inverters (from Kaco), respectively. That brings the total possible rebate to $.70 per Watt. The rebate program will be divided into two categories: $9 million for residential installations and $6 million for commercial.

The current rebate limits of $25,000 for residential projects and $80,000 for commercial remain in place. Rebates are also capped at 50% of project cost.

Investment Tax Credit Info.



Federal Tax Credits for Solar – A federal tax credit of 30% of cost with no upper limit is currently available for both solar photovoltaic and solar water heating systems.

The Federal Solar Tax Credit offers 30% tax credit for the cost of your system, with no limit for solar electric systems.You simply reduce the federal taxes you owe by 30% of the cost of your system after any rebates are received. Any unused tax credit can be carried over to the following year. Further information can be found at:  or from your tax professional.