Arizona Solar Panel Incentives

Equipment and property tax exemptions thanks to the solar equipment sales tax exemption you are free from the burden of any arizona solar tax.

Arizona solar panel incentives.

After the tax credits we subtract your first year s energy savings which we estimate to be about 1 576. After claiming the 26 federal solar tax credit and arizona s state tax credit the price is only 2 00 per watt. How does the 26 federal solar tax credit work. As of september 2020 the average solar panel cost in arizona is 2 69 w given a solar panel system size of 5 kilowatts kw an average solar installation in arizona ranges in cost from 11 432 to 15 468 with the average gross price for solar in arizona coming in at 13 450 after accounting for the 26 federal investment tax credit itc and other state and local solar incentives the net.

Arizona and massachusetts for instance currently give state income tax credits worth up to. Aps uses the recs to demonstrate compliance with the state s renewable energy standard res. Through the renewable incentive program arizona public service aps offers customers who install solar water heating systems the opportunity to sell the renewable energy credits recs associated with the energy generated to aps. Arizona solar and wind equipment sales tax exemption this incentive is a state sales tax exemption.

The exemption is for 100 of the sales tax on eligible equipment. This puts the average cost of a 5kw system at 13 958 before incentives and 9 325 after claiming incentives. The eligible technologies are photovoltaics solar water heat solar space heat solar thermal electric passive solar space heat wind solar pool heating and daylighting. The residential arizona solar tax credit reimburses you 25 percent of the cost of your solar panels up to 1 000 right off of your personal income tax in the year you install the system.

Arizona has a solar tax credit too which will take another 1 000 off for a new total of 18 048. Arizona state tax credit for solar the most significant solar rebate offered in arizona is the credit for solar energy devices from the arizona department of revenue. The most significant incentive to install solar panels for homes and businesses in arizona is the federal solar tax credit. This credit offers 25 off the gross cost of the system up to a maximum credit of 1 000.

The federal solar tax credit gives you a dollar for dollar reduction against your federal income tax. At the end of 2020 the amount of the credit will decrease from 26 to 22 of the cost of the solar installation. In addition to arizona s solar incentives you ll be eligible for the federal solar tax credit if you buy your own home solar system outright. Some will continue even after the federal credit expires.