Solar energy is a great way to reduce your consumption of grid power while also reducing your monthly expenses. However, some homeowners are hesitant to take the plunge due the significant upfront investment that is required. Fortunately, there are several ways to save big on solar equipment & installation by claiming your Arizona solar tax credit.
This article will explore six different ways Arizona homeowners can go solar for cheap without having to make compromises.
6 Ways Arizonans Can Go Solar For Cheap
Solar equipment is expensive, but you don’t have to settle for less in order to save money. Here are six ways that Arizona residents can save money on residential solar installation:
1. Federal Investment Tax Credit (ITC)
Residential solar systems installed up to December 31, 2032, are eligible for a solar tax credit that covers 30% of the installation cost. The incentive is applied when filing your taxes for that year. If the amount is higher than the taxes due, you can roll it over for up to five years. The federal solar incentive applies across the country.
2. Arizona Solar Tax Credit
Arizona offers a tax credit of about 25% of the cost of the solar system or $1,000 (whichever is less). This credit is applied when you file your taxes, covering the year the systems were installed. You cannot carry the credit over to other years if you owe less tax than the value of the credit.
3. Solar Equipment Sales Tax Exemption
Solar panels bought in Arizona are exempt from the sales tax, which stands at 5.6% of their value. The incentive applies when buying solar equipment and works with the others listed above.
4. Energy Equipment Property Tax Exemption
Any increase in property value due to the solar system installation is not taxed in Arizona. The home assessors do not include the value of the system where property taxes are concerned. This incentive is ongoing and applies to future home assessments unless there is a change in the law.
5. Net Billing
This is an offer to buy your excess solar energy at about 75% of the cost of each unit supplied to you. The net billing is applied to your monthly bills. There is no standard amount per unit, and the cost depends on your utility provider.
6. Local Incentives
Several utility companies across the state offer rebates and other incentives to entice residential homeowners to install solar systems. The amount depends on the utility service provider. You can also check for such offers when purchasing equipment.
Save Big with Solar Optimum
At Solar Optimum, our mission is to help more homeowners achieve energy independence by providing affordable and reliable solar solutions. That’s why we offer monthly specials and select equipment and upgrades.
Arizona residents have access to a variety of incentives that can make solar energy more affordable. But you can save even more when you work with Solar Optimum. Visit our website or connect with one of Energy Consultants to learn more about this month’s special offer and start saving on day 1.
