Recently, there’s been a wave of shady commercials and advertisements claiming that homeowners can get free solar panels in Arizona. Some claim the state has to give you free panels, some are installers claiming that their service is 100% free. Fortunately, most people know a scam when they see one. Discover the truth about free solar panels in Arizona and how to get them at a discount rate.
Are There Free Solar Panels in Arizona?
No! There are no deals that include free solar panels in Arizona or any other state. Beware of any companies claiming they provide free solar panels as this is a strong indication that the source is a scam and not a top company. Legitimate solar installers will walk you through the landscape of solar financing, rebates and incentive options, but will never tell you that the equipment or the work is free.
Fortunately, there are state and national tax incentives for installing solar in Arizona at an affordable price. You can also take advantage of leasing and PPA options.
What About “No Money Down” Solar in Arizona?
“No Money Down” is not the same as free. Some installers offer solar leasing and power purchase agreements (PPA). In both cases, the installer owns the solar panels and will install them on your roof without charging for the equipment or labor – which they still own. Then the customer pays for the use of the solar panels installed on their property, even if the installation was completed for “$0 down.” The panels or the power still come at a cost, but the company doesn’t charge for the installation because they own the panels.
Arizona Financing Options for Solar Panels
While you can’t get free solar panels in Arizona, you can significantly reduce the price with a combination of rebates, tax incentives, financing options and other solar deals.
Solar Leasing
Solar leasing is like leasing a car, only with panels installed on your roof. The solar company designs the system and installs the panels, and the customer pays a monthly leasing fee and enjoys the power produced by the panels. The customer decides whether to store the solar or use net metering to best offset their grid power expenses.
Solar PPA
Solar power purchase agreements or solar PPA is when solar panels are installed on your home at no charge, but you agree to buy the power the panels produce at a flat rate. This option is beneficial when the flat rate is lower than the cost of power from the utility company. Solar PPAs can also include net metering of excess power for credits or storage of the power at the usual generation rate.
Rebates
In Arizona, the only rebates offered for solar are from local utility companies. The rebates usually offer some amount of payment within the first year after generation based on the generation capacity of the new solar system. This can include both solar panels and alternative systems, like solar water heaters.
Incentives
There are several Arizona solar incentives offered by the state that stack onto the federal solar incentives.
Income Tax Credit – Arizona State
- 25% of the solar installation cost is discounted from your Arizona state income taxes during the year of installation.
- $1,000 maximum incentive
Income Tax Credit – Federal
- 30% of your solar installation costs
- No maximum
- Rolls over for up to 5 years if the tax liability is less than the total credit
Arizona Property Tax Exemption
- When solar increases your property value, you are exempt from 100% of the added value in property taxes
- Includes solar panels, passive solar, solar pool heaters, solar space heaters, solar thermal electric and solar water heaters
Solar Sales Tax Exemption – Arizona
- The cost of all solar equipment is exempt from sales tax
- Battery storage and accessories are excluded
Navigating Solar Offers for the Best Deal in Arizona
With so many options for solar installation, it can be challenging to know which is the right one for your home, power needs and financial plans. Fortunately, Solar Optimum has the knowledge you need to find the best deal in Arizona. Contact us for help finding affordable solar panels that can save you money on your energy bills.
