Solar Water Heating Systems

Up to 15 percent of your energy bill can come from heating water, but the sun can do it for free. When you install a solar water heater, you may be eligible for a one-time incentive payment from APS equal to $0.75 times the first year kWh savings your system provides (kWh savings estimates are based on the industry OG-300 performance rating as published by the Solar Rating and Certification Corporation).

The maximum APS incentive you can receive is equal to 50 percent of the total system cost. Other incentives such as a Federal tax credit (30 percent of the system cost) and a State tax credit (25 percent of system cost up to $1,000) may also be available to you. To receive the full APS incentive, participants are required to contribute a minimum of 15 percent of the actual system cost after all utility and tax incentives have been applied.

How Solar Water Heaters Work - watch the video

Solar Water Heating for your Home - watch the video

1. Submit the following:
   

   • A completed and signed reservation application and credit purchase agreement
   • An itemized quote for all system and installation costs. The quote must include the manufacturer and model number of the OG-300 rated system.
     
     
2. Receive reservation confirmation from APS.
   You will receive written notification that your reservation was approved or denied.
   
   
3. Obtain any local permits and proceed with installation of your system.
   After installation, obtain necessary municipal clearances ("green tag"). Typically your installer will assist you in obtaining permits and clearance.
   
4. Request your incentive payment.
   Your request should include:
   

   • Proof of final clearance
   • An installation certification form signed by both your equipment dealer and installer.
   • Receipt confirming the system purchase price, payment, and installation by an Arizona licensed contractor.

Submit all program documents to:

APS Renewable Incentive Program
P.O. Box 53933, MS 3161
Phoenix, AZ 85072-3933
Contact Us

If you have any questions regarding the process, please call (602) 328-1924.

Helpful links and resources

Contact APS Renewables  |  Renewable Energy Home
Learn more about all APS Green Choice programs