Summary of Arizona Solar Incentives
·Federal Tax Credit 30%
·State Tax Credit: 25% residential
·6 Utility Rebate Programs
Arizona has become one of the foremost states for solar since its Renewable Energy Standard was instituted alongside a solar sales tax exemption in the early 2000s.
Arizona gets a lot of sunshine! More than 300 sunny days each year, to be exact. The sun shines often, and the air isn’t humid, which is perfect for solar power.
Here are some of the incentives available to Arizona home and business owners:
Table of Contents
Federal Solar Investment Tax Credit (ITC)
Homeowners who qualify for the Solar ITC can take advantage of a tax credit of 30% of the cost of a solar panel system. This can add up to huge savings for solar owners however. The Federal ITC is set to expire in 2035, which might be set up for the renewal of the policy with a new plan.
Arizona Solar Incentives & Tax Credit
Arizona offers its state solar tax credit. Residents can receive a 25% state solar tax credit on the total cost of their solar system, including installation.
Net Metering:
Net metering in Arizona is a billing arrangement for solar panel owners that credits them for the excess electricity they generate. When your solar panels produce more energy than your home consumes, the surplus is fed back into the grid and credited to your account, effectively spinning your meter backward. These credits can offset future electricity consumption, resulting in lower energy bills. Net metering promotes the efficient use of solar power, reduces reliance on fossil fuels, and supports the transition to clean energy. By participating in net metering, you save money and contribute to a more sustainable energy future while helping maintain grid stability in Arizona.
Property Tax Exemptions for Solar
Arizona offers a property tax exemption for renewable energy systems, including solar installations. This exemption means that the added value of your solar panels will not increase your property taxes.
Utility Rebates
Almost all of Copper State’s electric providers offer some rebate program. The Renewable Energy Production Tax Credit is available for Arizona taxpayers who owned a qualified generator that used a qualified energy source to produce energy before January 1, 2021. The program guidelines state that this credit can be claimed on the Arizona Tax Form 310. The sales and property tax exemptions heighten savings from federal solar investment tax credits.
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