Arizona Solar Incentives: A Brief Introduction

Arizona Solar Incentives: A Brief Introduction

  • Post author:

If you live in the sunny state of Arizona, odds are that you might have wondered what type of solar incentives Arizona offers. Ranking 5th in the nation for solar power growth, you might not be surprised to know that Arizona’s solar incentives are quite impressive. While the over 80% sunny days contribute, the Arizona solar power incentives really seal the deal for most middle-class households.  But what incentives are available, and how can they benefit you? In this article, you’ll get all of that information and more, keep reading to learn all about Arizona Solar incentives, and if you would like to learn about Federal solar incentives click here!

Arizona solar incentives

Does Arizona Offer Solar Incentives?

Arizona offers various solar incentives for residents and businesses. These incentives include:

  • The Arizona Renewable Energy Tax Credit
  • Bill Metering
  • The Federal Tax Credit
  • The Property Tax Exemption
  • The Community Solar Program
  • Solar Grants and Rebates

Note: These incentives change over time and have restrictions and qualifications. You should always check with your local authorities and utilities to confirm their availability and terms.

Can You Get Solar Panels for Free in Arizona?

If you’ve researched installing solar panels in Arizona, you’ve likely seen ads stating that you can get solar panels for free. While it’s true that you can install solar panels with no initial investment, “free” is a loose term. It is possible to get solar panels for “free” through a solar leasing or power purchase agreement (PPA) in Arizona. Here’s a quick explanation of each:

Solar Leasing: With a solar leasing agreement, the solar company owns and maintains the solar energy system installed at your property. You then pay a monthly fee to them for the electricity generated by it. 

PPA: In a PPA, you agree to purchase the electricity generated by your installed solar system at a fixed rate for a set period of time. 

You should properly research and compare the different options available in your area. These agreements have long-term commitments, and terms and conditions vary from company to company. 

The Top 3 Arizona Solar Incentives Explained

Arizona Solar Tax Credits

The Residential Arizona Solar Tax Credit is a financial incentive offered by the state. You can qualify for up to 25% of the cost of your solar energy system, with a maximum credit of $1,000. This amount will be deducted from your personal income tax in the year your solar system is installed. The Commercial Arizona Solar Tax Credit offers businesses an opportunity to earn when installing solar systems. Your business can receive 10% of the installed costs. The maximum credit for this incentive is $25,000 per building and $50,000 per year for an individual company. 

The Arizona Solar Tax incentive credit can be applied to the cost of your solar panel system and installation thereof. To take advantage of this incentive, you should first install a solar energy system on your property. You can then claim the credit by filling out the appropriate forms and submitting them to the Arizona Department of RevenueIt’s important to also check with the Arizona Department of Revenue for the most recent information and updates on this solar tax incentive. 

Arizona Net Billing Program

Arizona does not offer a net metering system. Instead, they require utilities to use a net billing program. Under this net billing program, your utility company will have to purchase the excess solar energy you produce from you. This allows you to send unused electricity back to the grid and be compensated for it. Depending on the utility, your excess solar energy can put between 5% and 30% of the retail rate of electricity back in your pocket. 

Arizona Property Tax Exemption

State law grants a property tax exemption for the value added to your property by a solar power system. Your solar system will not be included in your property’s assessed value for tax purposes. While this is not a direct payback, you will save money with this incentive. 

Is Going Solar in Arizona Worth It?

Arizona is one of the best states to live in if you’re considering a switch to solar. It receives more sun than any other region in the United States! The state offers an average of over 300 days of sunshine every year. If you want to go solar, there are a few factors you can analyze to decide if the investment is worth it for your home or business. Here’s what you need to consider:

  • Your energy use
  • The cost of going solar
  • The average payback on your investment
  • Your roof’s exposure to the sun

Switching to solar has various benefits. Electrical bill savings, incentives, increased home value, and a decrease in your carbon footprint are just a few. The last thing you need to worry about is how efficient your solar setup will be in Arizona. The majority of days will be ideal for energy generation. 

Arizona solar incentices

The Future of Arizona Solar Incentives

It’s difficult to predict the future of solar incentives in Arizona, but based on general trends and past practices, the state is likely to increase its focus. Solar power continues to prove its worth as a renewable energy source. Governments and corporations worldwide understand the need to transition to cleaner electricity, which will likely drive successful states like Arizona to greater achievements. However, there are also challenges to the growth of solar power. This includes competition from other renewable energy sources. Hopefully, we’ll see incentives for them implemented as well. 

Making The Switch to Solar Is Easier Than Ever!

Installing solar energy for your residential or business power needs has numerous benefits. Besides saving money with the help of incentives, your electricity bill will reduce. You’ll also decrease your dependence on traditional energy sources, giving you more freedom and reducing your carbon footprint. While it’s difficult to predict the future of solar incentives, one thing is sure: switching to solar will deliver a long-term return on your investment. I hope this article was helpful. If you have more questions, ask them in the comments!


Solar Sena Author

+ posts

Leave a Reply