Arizona

Arizona Solar Incentives and Rebates

Arizona receives an abundance of sunshine, which makes it an ideal location for solar energy production. The state offers a variety of incentives and rebates in order to encourage more residents and businesses to invest in solar power, which can help to offset the cost of installation. These include federal and state tax credits, state-wide initiatives, and local incentives.

The Federal Investment Tax Credit in Arizona

One of the most significant incentives available to Arizona residents and businesses is the Federal Investment Tax Credit (ITC). The ITC is a federal tax credit that allows solar energy system owners to claim a credit on their federal income taxes equal to 25% of the cost of the system. This credit was decreased to 22% for systems placed in service after December 31, 2022.

State Tax Credit in Arizona

Unfortunately, Arizona does not offer any incentives or rebates at the state level. However, Arizona does offer a Renewable Energy Production Tax Credit, which provides a credit for solar energy systems that generate electricity for sale to an electric utility. For more information, visit https://azdor.gov/tax-credits/renewable-energy-production-tax-credit.

State-Wide Solar Initiatives in Arizona

1. Arizona Solar Rebate: The state of Arizona offers a rebate to residents and businesses that install solar energy systems. The rebate is based on the size of the system and is capped at $1,000.
2. Local Incentives: Some cities and counties in Arizona also offer incentives to residents and businesses who install solar energy systems. These incentives can include property tax breaks, low-interest loans, and permit fee waivers.
3. Arizona Solar Financing Options: Arizona also offers multiple financing options, like PACE (Property Assessed Clean Energy) or LEASE program, to help make going solar more affordable to all.

State-wide Tax Exemptions in Arizona

1. Solar Energy System Equipment Credit: Arizona also offers a 25% credit for purchasing the equipment for the solar energy system against personal income taxes owed in that year.

Solar Easements in Arizona

Arizona state law protects the private property rights of homeowners with regards to solar access by voiding any local covenants, restrictions, or conditions in the property deed that inhibit the use of solar energy. This means that the community documents cannot prohibit the installation or use of a solar energy device as per section 44-1761. The association can establish reasonable rules for the placement of a solar energy device, as long as those rules do not impede installation, affect the functioning or use of the device or the cost or efficiency of the device. If an individual or party successfully takes legal action against the association for a violation of this section, they may be awarded reasonable attorney fees and costs.

Net Metering in Arizona

Under net metering, homeowners with solar panels can connect their systems to the grid and receive credits for the excess electricity they generate. The excess electricity is measured by the utility company and is credited to the homeowner’s account that can then be used to offset the cost of electricity that the homeowner draws from the grid. Homeowners’ electricity bills are reduced since they only pay for the net amount of electricity they consume.

Benefits of going solar in Arizona

There are also several financial incentives that make going solar in Arizona a smart investment. For example, solar energy can reduce electricity bills, increase property value, and improve home resale value. The state also offers a number of tax incentives for solar energy, including a state tax credit of 25% of the cost of a solar energy system, with a maximum credit of $1,000. 

Conclusion

Overall, Arizona offers a strong incentive for homeowners to consider installing solar panels on their property. With the state’s abundant sunshine, net metering policy, and financial incentives, solar energy can be a cost-effective and sustainable solution for powering homes and businesses in the state. Additionally, with the rising cost of electricity, solar power can be a wise investment for homeowners looking to save money on their utility bills and promote a cleaner energy future.

FAQs

Installing solar in Arizona can help you save money on your electricity bills, reduce your carbon footprint, increase your home’s value, and take advantage of tax credits and other incentives.

The amount of money you can save depends on the size of your system and your electricity usage, but you can expect to save 10-50% on your electricity bills. Find out more about solar savings at SolarEmpower.

Arizona offers a solar tax credit of up to 25% of the system’s cost, as well as other incentives such as net metering and renewable energy credits. Get all the information about solar incentives here.

The cost of installing solar in Arizona depends on several factors such as the size of your system and the type of panels you choose, but the average cost of a residential solar system is around $15,000.

Yes, there are many local solar installers in Arizona that can help you install a solar system. You can search for reviews of installers in your area at SolarEmpower.