Some of the biggest incentives of going solar in Arizona are the tax credits and exemptions. Let’s look at these incentives to go green today!
Arizona State Residential Tax Credit
Most valley residents are eligible to receive the state tax credit in addition to the Residential Clean Energy Credit. This credit is currently valued at 25% of the cost of your system, up to a maximum amount of $1,000. Anyone eligible can claim this credit for up to five years. The amount is never to exceed $1,000, as stated above. In order to qualify for the solar tax credit, Arizona homeowners must have a state tax liability.
Federal Tax Credit
Also known as the Residential Clean Energy Credit, Arizonans are eligible for the Federal Tax Credit. This credit allows homeowners to reduce the amount of tax owed up to 30% of their solar panel installation cost from federal income taxes. In addition to residents who choose to install solar panels, battery storage system owners can also qualify for the credit. The majority of homeowners in the valley will opt for battery storage systems when investing in solar energy. While this credit does not directly lower the cost of your solar system, it will undoubtedly help offset the cost by lowering your tax liability for the installation year. Residents must note that the tax credits are neither a rebate nor a refund. Homeowners need to have a federal tax liability in order to benefit from the tax break.
Energy Equipment Property Tax Exemption
The installation of solar power has been proven to increase a home’s value overall. In Arizona, solar panels are indeed eligible for a property tax exemption. This means if your solar system does increase your home’s value, then you might be exempt from paying taxes on the recently raised value. This tax exemption can also be applied to the following:
- Solar pool heaters.
- Solar water heaters.
- Solar space heaters.
- Passive solar technology.
- Solar thermal electric.
- Solar thermal process heaters.
- Other solar-powered appliances.
Solar Equipment Sales Tax Exemption
Arizona currently offers residents a sales tax exemption for the retail sale of any solar energy devices, and for the installation of said devices by licensed contractors.
Other Reasons To Go Solar In Arizona
Here are some of the best reasons why you should invest in solar power for your business or home.
Lock In Utility Costs For Next 25 Years
Solar panel installation gives you the ability to lock in your utility costs for the next quarter of a century. Utility rates continue to climb with no end in sight – unless you invest in solar power. Take away the certainty of rising utility costs for the next 25 years.
Arizona Has The Most Sunny Days In The U.S.
Arizonans experience the most sunny days in the U.S., according to BestPlaces. The 299 days of sunlight experienced in Arizona is more than any other state in the country. Yes, that includes the sunshine state of Florida. Other energy sources, such as gas and oil, are finite so solar power clearly has its advantages in the valley of the sun.
Good For The Environment
This is the first and most obvious benefit for home and business owners. Going solar means you will no longer generate waste. Plus, with zero maintenance requirements, these solar systems last much longer than other energy-production systems. Solar panels, specifically, are extremely durable with the ability to handle any inclement weather conditions.
No Maintenance Requirements
Solar energy requires no outside energy source, which allows energy costs and maintenance requirements to be nearly non-existent. Essentially, the cost of installation is one of two costs associated with a solar system throughout its lifespan. As previously mentioned, there are several ways to lower the cost of installation, as well.
Solar Is Fastest Growing Renewable Energy Source In The World
The use of solar power is growing faster than even the experts had expected. In fact, it took nearly 40 years to get one million solar systems installed and only another two years for an additional million installations, according to RavenSolar. The experts believe there will be four million solar systems being utilized by the year 2023. It’s time to join the masses by changing the world, one home installation at a time.
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