Arizona is known for the Grand Canyon and its hot and dry climate. Thanks to abundant sunshine, Arizonans are well-poised to shift from fossil fuel to solar energy. However, are you aware of the opportunities that apply specifically to people in Arizona?
Arizonans have special incentives and advantages when they embark on their clean energy journey. If you’re living in or moving to Arizona, or are simply curious, read on for the unique reasons why Arizona is good for solar energy.
More Sunshine and Fewer Taxes
First, Arizona is the sunniest state in the nation. Although Florida typically gets the nickname “The Sunshine State,” it could also apply to Arizona. As Energy Report declares, it has 300 sunny days in the year. This means it’s in an optimal position to harness solar energy to power your home. Compared to New York, for example, Arizona produces 70% more solar energy. So you can get much more solar power with fewer panels.
Arizona also offers a state tax credit called The Residential Clean Energy Credit. With this program, you can deduct 25% of the cost of your solar energy system from your state income tax (up to $1,000). This state tax credit is in addition to the 30% federal income tax credit Arizonans can also receive. So, a system in Arizona that costs $15,000 can qualify for a tax reduction of $4,500 federally and $1,000 at the state level.
Arizonans can also save significantly on sales and property tax thanks to the state’s Solar Equipment Sales Tax Exemption and Energy Equipment Property Tax Exemption policies. This means that you won’t be charged sales tax on your solar purchase and the added value of your solar system will not increase your home’s property tax bill. While the final savings will be different for everyone, this can add up to thousands of dollars in avoided taxes.
Opportunities for Savings
Overall, solar energy costs less in Arizona. The nation’s average is around $3 a watt; in Arizona, it’s about $2.44. This means Arizona also has a lower solar payback period, meaning the time it takes to reap the return on investment regarding energy savings.
Compared to other states, Arizona has some of the best solar incentives in the U.S., making it an attractive option for homeowners looking to save money and cut ties with their electricity company.
Go Solar and Save Big in Arizona
Arizonans are in a great position to enjoy the benefits of solar energy. Due to the state’s ample sunshine and tax incentives, there are plenty of reasons to transition to clean, renewable energy.
If you live in Arizona and have questions about solar energy, contact us. Solar Optimum has been a leading energy provider for over 15 years. We’re happy to give you a quote, more information, and a professional installation of residential solar panels.