With the escalating concern about climate change and rising utility bills, more homeowners and businesses in Arizona are turning towards solar energy as a sustainable and cost-effective solution. The state of Arizona, blessed with abundant sunshine, provides a conducive environment for solar installations. Besides the environmental and long-term financial benefits, numerous solar tax credits and incentives further sweeten the deal for Arizonans. In this guide, we will delve into the various solar incentives available in Arizona, aiming to provide you with valuable insights as you consider making the switch to solar with SUNSOLAR SOLUTIONS.
Federal Solar Investment Tax Credit (ITC)
The Federal Solar Investment Tax Credit (ITC) is a significant incentive for anyone considering a solar installation. The ITC offers a tax credit equal to 30% of the solar system cost, including installation, for systems installed through the end of 2032. This credit will begin to phase out after that.
Arizona State Solar Tax Credit
On top of the Federal ITC, Arizona provides homeowners a state solar tax credit of 25% of the total cost of the system up to a maximum of $1,000. The credit can be used for up to five years, but the amount of the tax credit cannot exceed $1,000.
Net Billing in Arizona
Arizona does not offer super solar-friendly Net Metering. Instead, the state requires utility companies to offer Net Billing, which can be a bit confusing. It is a billing arrangement that allows solar energy system owners to get credit for the excess electricity their systems generate. It is credited at an excess generation credit rate, which is lower than the retail rate of electricity. Depending on the utility, the excess energy is purchased at a rate of between 5% to 30% lower than the retail rate.
Other Local Incentives
Various local incentives and programs are available to further support solar adoption in Arizona. Through 2024 new solar installations will not add to the property tax of the home. It’s advisable to check with local municipalities and utility companies for any additional incentives they may offer.
Transitioning to solar energy is not only a step towards a sustainable future but also a wise financial investment. With the array of incentives available, there has never been a better time to go solar in Arizona. At SUNSOLAR SOLUTIONS, we are dedicated to providing you with the best solar solutions tailored to meet your needs.
Ready to harness the power of the sun? Get a free solar quote from SUNSOLAR SOLUTIONS today and take the first step towards energy independence.