With about 300 sunny days in Phoenix, and more than 320 sunny days in Yuma, Arizona is the sunniest state in the country. So if you’re thinking about getting a solar system for your home, now is a good time.
And with the generous Arizona solar incentives available, it’s easier and more affordable than ever.
The Current Arizona Solar Incentives
There are 4 rebates and programs you should be taking advantage of. Those are:
- Federal Solar Investment Tax Credit (30%)
- Arizona Residential Solar Energy Tax Credit
- Energy Equipment Property Tax Exemption
- Solar Equipment Sales Tax Exemption
Here’s the breakdown of all the solar incentives:
Federal Solar Investment Tax Credit
This is available for all solar systems purchased and installed by December 31, 2022. What this means is when you purchase a solar system with us, you’ll get 30% of the cost back at the end of the year as a tax rebate.
For example, let’s say you have an average solar system installation that costs you $18,000. That means you would get $5,400 back, bringing the total cost of your system down to $12,600.
💡 Want a real-life example of how much you could save? Read our Solar Panel ROI case study to see how a customer of ours saved themselves in excess $124,000 over the next 20 years because they would’ve spent over $176,000 in electricity costs.
Arizona Residential Solar Energy Tax Credit
This is a $1,000 tax credit you get from the state of Arizona. Referring to our original example of the $18,000 system, your total cost would be $11,600 after your Arizona solar incentive programs.
Energy Equipment Property Tax Exemption
Nothing is worse than trying to improve your home, but getting taxed for all your hard work and money. When you update your home by adding solar panels, your property taxes won’t go up.
Solar Equipment Sales Tax Exemption
You pay zero sales tax on the cost of the solar panels and installation.
Some Other Arizona Solar Incentives Not Discussed Often
Now that you know about the perks and programs, here are a few more little known benefits you will want to consider.
Lock In Your Current Electricity Rate
Most don’t know this, but back when solar panels were becoming accessible to the public, the electric companies would increase their rate to make up for what they were losing due to the solar panels. But the federal government stepped in and made a law to prevent this from happening.
Increase Your Home’s Value
Another benefit to going solar is the increase in home value. While the amount varies, you can expect to see an increase of your home’s value when you invest in a solar system.
One study from Berkeley Lab stated the following:
A multi-institutional research team of scientists led by the U.S. Department of Energy’s Lawrence Berkley Laboratory (Berkeley Lab), in partnership with Sandia National Laboratories, universities, and appraisers found that home buyers consistently have been willing to pay more for homes with host-owned solar photovoltaic (PV) energy systems —averaging about $4 per watt of PV installed—across various states, housing and PV markets, and home types. This equates to a premium of about $15,000 for a typical PV system. The team analyzed almost 22,000 sales of homes, almost 4,000 of which contained PV systems in eight states from 2002 to 2013—producing the most authoritative estimates to date of price premiums for U.S. homes with PV systems. Berkeley Lab, 2015
And another study performed by Zillow in 2019 stated that installing solar can increase your home value by 4.1% on average . The median home value in Tucson, Arizona is $323,969 . So that would be a $13,282 added to your value.
According to Rocket Homes, home listings with solar spend 13.3% less time on the market and are 24.7% more likely to sell over asking price .
Power Your Home With SunTap Power
We offer a variety of options with solar panels and ways of reducing your electric bill. But in addition to the Arizona solar incentives, we can get you powered by solar panels with $0 down financing and other cash options.
Are you read to take advantage of the various Arizona solar incentives today? Be sure you work with a top solar company in Tucson (like us).
The next step is to get a custom solar quote from one of our solar experts. Just fill out the calculator below, and we’ll be in touch. 👇
1. Arizona weather
2, 3. Energy Equipment Property Tax Exemption
4. Berkeley Lab Illuminates Price Premiums for U.S. Solar Home Sales (pdf)
5. Homes With Solar Panels Sell for 4.1% More
6. Tucson home values (zillow)
7. Rocket Homes Data