Being a homeowner in sunny Arizona, you have likely noticed the ever-increasing price of electricity. Perhaps you have been considering whether now is the time to invest in solar upgrades to your home. Thanks to the currently available Arizona solar incentives, now is a great time to make the change to solar power. Let’s examine the available incentives.
Federal Incentives
Currently, the largest credit available to Arizona homeowners who switch to solar energy is the federal solar investment tax credit. Through this program, you will receive a credit on your federal tax return equal to 30% of the entire cost of your solar energy system. That 30% discount will also apply not only to the equipment you purchase, but any expenses incurred by the labor and permitting of the installation.
State Incentives
Arizona residents also have access to several incentives at the state level. These include the following:
1. Arizona Solar Tax Credit
The state of Arizona also offers an additional personal tax credit off your state taxes that amount to 25% of the total cost of your system, up to $1,000.
2. Arizona Solar Property Tax Exemption
Adding solar panels to your Arizona home will increase your property value, but thanks to the Arizona solar property tax exemption, the taxes on your property will not reflect the increased value. You will not see an increase in the property taxes you pay because of the added value your solar energy system adds to your home.
3. Arizona Sales Tax Exemption for Purchase of Solar Equipment
All equipment you purchase as part of your solar energy system will be exempt from sales tax, which can save you money upfront.
4. Utility Provider Incentives
Many utility providers offer additional incentives to make the switch to solar power. These may include home energy storage rebates, appliance upgrade rebates, or other solar rebates. You can learn more by contacting your local utility provider.
Net Billing Initiative
Arizona solar incentives also include the net billing initiative. Under this system, any extra solar power you produce through your solar power system can be sold back to the utility company for around 70%-95% of the retail cost. This means that you will be compensated for the extra energy you produce without ever having to lift a finger, as it will show up as a credit on your utility bill.
This initiative also works as an incentive to invest in your solar upgrades sooner rather than later, as you will be eligible to lock in the current buyback rate in the year of your installation, instead of the lower price that may be offered to homeowners who make the switch next year.
The Biggest Incentive: Arizona’s Annual Amount of Sunshine
All of these benefits can mean huge savings to Arizona homeowners. However, even without the extra incentives, solar power in Arizona offers homeowners the opportunity to pay as little as $10 a month on their electric bill. As you can count on sunshine most days of the year, a system of solar panels and storage will pay for itself.
Solar Optimum Wants To Help You Save
Homeowners need to know about the top available Arizona solar incentives to make an informed decision about when to upgrade to solar power in their homes. The professionals at Solar Optimum can help you design the ideal solar power system for your home. Contact us today to speak with one of our Energy Consultants!
