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Abstract
Arizona has adopted financial incentives to encourage the adoption of solar energytechnology. This study presents an economic analysis of state and federal financial incentives, including tax incentives on the Net Present Value (NPV) of residential and commercial photovoltaic systems, and evaluates the elasticities of NPV with respect to financial parameters. Measuring the effects of tax credit and exemption programs on NPV in Arizona, and the elasticities of NPV concerning financial incentives provides information on the efficacy of these programs. The analysis results of this thesis could contribute to the improvements in the U.S. solar policies. The results indicate that state income tax credit and property tax exemption impact more on solar energy technology. The analysis results of this thesis could contribute to the improvements in the U.S. solar policies.