Arizona Solar Incentives: Tax Credits & Rebates 2024 – Forbes Home – Forbes

Save on Energy says that homeowners in Arizona pay $3 to $5 per watt for a residential solar energy unit. An average five-kilowatt system is typically between $15,000 and $25,000. But, there are contributing factors that determine the cost of solar panel installation.

Factors that affect solar panel pricing:

• Cost of labor
• Local permits
• System components and devices
• System configuration
• System size

However, installing solar energy in Arizona comes with long-term savings from federal and state tax credits.

Almost all of Copper State’s electric providers offer some kind of 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 tax and property tax exemptions heighten savings from federal solar investment tax credits. For business owners and residential homeowners eyeing these perks, it is important to read the fine print on the state statutes that govern the full tax cash value of energy and storage systems. These guidelines also explain depreciation over time. Solar installation by a homeowner could raise property values and, thus, raise property taxes, but Arizona offers tax exemptions to minimize that.

The purchase of solar equipment in Arizona is exempt from sales taxes, which means more upfront savings. Some cities also have their own renewable energy programs and green energy commitments that include phasing in solar and other clean energy sources.

Phoenix is part of the Valley of the Sun Clean Cities Coalition, which works to increase the use of new technologies to fuel transportation systems.​ The Salt River Project has a battery storage incentive that accepts applications until July 29, 2021. Battery installations must have been completed by a licensed contractor in the state.

Over five years ago, Tucson Electric Power sought new net-metering plans to provide credits to those who install new solar panel systems for their roofs and outdoor spaces. While applications are currently closed, the TEP Go Solar program is expected to open this year for expanded participation. If opened, it would offer a fixed, affordable rate on monthly electric bills for taxpayers who install equipment to use this clean energy source.

Net metering is a system where utility companies allow customers to offset their energy consumption with power generated by their own renewable energy sources. However, Arizona no longer participates in net metering. In place of net metering, Arizona offers alternative solar programs and local incentives to make solar power systems more feasible.

If you’ve weighed all the available renewable energy options, including wind and electric, and decided on solar, then you already know that you’ll have to get specific about the kind of system that would be ideal for your home’s physical space and for your family’s energy needs. Here are important factors to consider:

• Weather during time of the installation
• Positioning system to maximize sunlight
• The age and condition of your roof
• Local Regulations by authorities
• Guidelines and prohibitions of the homeowner’s insurance company and neighborhood homeowner’s association
• Using a licensed contractor and qualified devices
• Energy consumption of your family
• Finances: Decide to rent or own the system

• Environmentally friendly: Solar energy offers low carbon emissions, unlike traditional energy sources. Solar power is environmentally friendly and helps slow the effects of climate change.
• Cost-effective: Solar energy installation reduces the cost of energy over time. You can save lots on traditional utility costs.
• Energy independence: Getting solar in your home lowers dependence on the electricity grid in your area.
• Extra source of income: If you install a solar battery on your roof, you could generate more solar energy than you need. You may be able to sell the surplus back to the grid.

Solar power is generally considered worth it in Arizona. The state’s abundant sunshine and favorable solar policies make it an ideal state for solar energy production in the United States. Plus, there are additional perks to solar, such as: 

• Energy efficiency: By installing solar power systems, you can not only generate your own electricity, but also reduce your reliance on the grid. This step can ultimately lead to significant savings on your monthly electricity bills, especially considering Arizona’s high air conditioning usage due to the hot climate.
• Solar incentives: Arizona has a lot to offer regarding solar energy. In addition to the plentiful sunshine, the state offers various financial incentives to promote solar energy adoption. These include a federal solar investment tax credit (ITC) that can offset some of the installation costs and state and local incentives like rebates, grants and property tax exemptions.
• Environmental benefits: Since it is both clean and renewable, going solar can contribute to a more sustainable future and reduce your carbon footprint.

As with selecting any skilled contractor, the quickest way to choose the best solar panel company is by going online to sites like Solar Reviews. Check out websites to read up on customer reviews, as well as to confirm that their devices and installations meet all the requirements of the tax incentive programs.