What Are the Best Solar Incentives in Arizona?
What Are the Best Solar Incentives in Arizona?
Blog Article
If you're considering installing solar panels in Arizona, you're in luck! Arizona offers some of the best solar incentives in the country, making it easier for homeowners to switch to solar energy and save money. Here’s a breakdown of the top Arizona solar incentives you should know about.
1. Residential Clean Energy Credit
One of the most valuable solar incentives in Arizona is the Residential Clean Energy Credit, formerly known as the federal investment tax credit (ITC). This incentive allows homeowners to claim 30% of their total solar panel system cost as a credit on their federal tax bill. With the average cost for solar panels in Arizona at around $10,309 for a 5 kW system, this credit can bring your cost down to just $7,216! However, to qualify, you must purchase your system outright or finance it with a solar loan—leases do not qualify.
2. Credit for Solar Energy Devices
The Arizona residential solar energy tax credit provides an additional benefit. This state-specific incentive allows you to claim 25% of your solar panel system cost, up to $1,000, as a credit on your Arizona state income tax. If your tax bill isn't high enough to claim the full credit in one year, you can roll it over for up to five years.
3. Arizona Solar Tax Exemptions
Not only do homeowners benefit from tax credits, but they also enjoy significant solar tax exemptions:
• Arizona solar sales tax exemption ensures you don’t pay sales tax on your system.
• Arizona solar property tax exemption means the value added to your home by solar panel installation won’t increase your property taxes.
4. Net Billing in Arizona
While net metering in Arizona is no longer available, homeowners can still net metering arizona take advantage of net billing. With net billing, excess electricity from your solar panel system in Arizona is sent to the grid, earning you credits. Although these credits are lower than retail rates, they still help reduce your solar panels cost in Arizona.
Are Solar Panels Worth It in Arizona?
With generous solar rebates in Arizona, solar tax credits, and solar installation incentives, the answer is a resounding yes! Investing in residential solar panels in Arizona not only lowers your energy costs but also increases your home’s value.
Need a Trusted Solar Installer? Contact Solar SME!
If you're looking for an experienced solar provider, Solar SME is your go-to expert for affordable solar and backup solutions. As a top-rated Arizona solar installation company, we help homeowners make the most of Arizona solar programs. Contact us today to start your journey toward clean, cost-effective energy!
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