With approximately 300 days of sunshine each year, considering solar energy in Arizona is a wise idea. We may never again see the initiatives and solar rebates in Arizona that are available right now. Those rebates can significantly reduce your solar installation cost while accelerating the transition to clean energy across the state.
Types of Solar Rebates in Arizona
Solar tax credits and solar rebates in Arizona are available through state and federal government policies. You may also qualify for local energy company rebates depending upon where you live.
Federal Investment Tax Credit (ITC)
The federal government allows up to 30% of expenses for a solar energy system to be applied as a credit on your federal taxes. While available through 2034, there is a reduction in credit available in 2033 to 26% and in 2034 to 22%.
Arizona Tax Credit and Exemptions
Arizona offers a solar tax credit allowing homeowners to claim 25% of the cost of your system on your state income taxes with a cap of $1,000. If the potential claim is higher than the taxes you owe, the balance can be rolled over to next year’s taxes.
Arizona also offers an energy equipment property tax exemption for the increased value of your home by going solar. The state currently provides a sales tax exemption on the purchase of your solar system as well.
Local Incentives
Some Arizona utility companies also offer incentives. Check with your local company.
Net Metering in Arizona
If your newly installed solar system produces more energy than you need, you can sell the excess to the utility energy grid. In Arizona, the net billing system is used in which homeowners receive compensation for your excess energy.
Eligibility Requirements for Solar Energy Rebates
Eligibility requirements for solar energy rebates in Arizona include:
- A tax credit must be applied within the same year as installation.
- You must own the property on which the solar system is installed.
- The size of the system must be a minimum of 5kW.
- You must buy the system outright – it cannot be part of a lease program.
Application Process for Solar Rebates
To receive the Federal ITC, you need to calculate your credit and file IRS form 5695 along with your tax return.
For Arizona’s rebate, you must complete 301 and 310 forms and return them with your state tax return to receive your energy credit.
Maximizing Rebate Benefits
Each rebate and incentive process for solar energy in Arizona has no bearing upon another. Before you buy a system, ensure you are meeting your needs, and the size of the system meets the requirements for rebates available to you.
Future of Solar Rebates in Arizona
Solar energy rebates and incentives do have an end date. Those rebates and incentives are in place to encourage homeowners to invest in solar energy quickly while reducing Arizonans’ carbon footprint.
Environmental Benefits
Traditional energy sources harm our environment through air, water, and soil pollution. Solar energy is a clean and renewable energy source that captures the sun’s rays and converts them into the energy we need with the added goal of water conservation.
Call Solar Optimum for Your Solar System Installation
Through years of experience in the solar field, Solar Optimum can properly address all your questions and concerns about solar energy. Don’t wait, contact us to receive your free quote for a solar panel system today!
