Arizona is one of the sunniest states in the United States and, thanks to its favorable policies, has one of the largest numbers of solar installations. The initial cost of solar panels in Arizona may be high, but this is mitigated by the Arizona solar incentives, making solar energy a great investment if you live in the state.
This guide explores the Arizona power payback program that enables Arizona residents to save money while reducing their carbon footprint.
The Arizona Power Payback Program
The Arizona Power Payback Program is a visionary initiative designed to empower residents and businesses to embrace solar energy and reap its numerous benefits. This innovative program offers a pathway to reduce energy costs and contribute to a cleaner and more sustainable future.
Through the Arizona Power Payback Program, participants can install solar panels on their properties, converting sunlight into electricity and significantly reducing their reliance on the traditional power grid. Excess energy generated by these solar systems can be fed back into the grid, earning participants credits for the power they contribute.
These credits, known as Net Energy Metering (NEM) credits, last indefinitely, and you get paid every year if they exceed a certain balance. You can use these credits to offset future electricity bills. This means that not only will participants save money on their energy bills, but they will also have the opportunity to potentially eliminate their electricity expenses altogether.
Arizona Solar Incentives
The Arizona Power Payback Program is a great way to increase the value of your investment in solar. But the state also offers several other incentives, as well. Here are some of the key incentives available to residents in the state:
Federal Investment Tax Credit (ITC)
The Federal ITC allows homeowners to claim a percentage of the total cost of their solar system installation as a tax credit, helping customers save thousands of dollars and solar equipment and installation. As of October 2022, the tax credit is set at 30% and will step down to 26% in January of 2033.
In addition to rooftop solar equipment, the credit also includes energy storage solutions such as the Tesla Powerwall, if they are purchased at the same time.
Solar Equipment Sales Tax Exemption
The state of Arizona does not charge sales tax on solar energy devices. And since a typical solar PV system can cost up to $25,000, this exemption allows homeowners to save thousands of dollars on their purchase.
Let Solar Optimum Help
The Arizona Power Payback Program is one of the best ways to transition to solar energy without financial pressure. Solar panels last for decades, and within seven years, you’d begin to recoup your investment, so why not take the plunge and reap the benefits?
At Solar Optimum, we are experts in solar power and equipment and have years of experience installing solar panels for Arizonians. Contact us today, and let us help you reap the benefits of solar energy in Buckeye, Carefree, Cave Creek, El Mirage, Goodyear, Litchfield Park, Paradise Valley, Phoenix, Surprise, Wickenburg, and Youngtown.
