Arizona Solar Incentives and Policies
Thinking about adding a solar energy system for your home, business, government building or school? There are dozens of federal, state, and local Arizona solar incentives and programs which could help save even more money on an installation.
It’s important to understand the difference between solar incentives and programs and policies.
- Incentives and programs usually include some sort of rebate or cash back amount. They are designed to encourage solar adoption.
- Policies are laws intended to increase the use of solar and are critical to know before starting any type of building project. In many cases, these explicitly require certain types of solar technology to be used.
While incentives and programs will save you money, understanding and complying with policies will save you headaches and frustration.
Fortunately, our team is experienced in all types of solar installations. We know what to look out for and which incentives, programs, and policies apply for your specific circumstance. Here’s what you need to know about Arizona’s solar policies and the incentives offered in this state for investing in solar solutions.
What Are Arizona’s Policies and Incentives Around Solar Power?
In our experience, there are two top incentives that make solar power an affordable, smart choice.
By installing a solar system, individuals in Arizona can receive a tax credit of 25% of the cost of the system with a $1,000 maximum. This significantly cuts the cost of a solar installation, making it an affordable, smart investment.
Receive 30% Back as a Federal Income Tax Credit
Solar systems installed in 2021 and 2022 qualify for a 30% tax credit. There is no maximum amount that can be claimed, cutting the cost of an installation by more than a fourth! Save $1000 with the Arizona Residential Solar and Wind Energy Systems Tax Credit.
How Much Can These Tax Credits Save You?
Combined, the Arizona state and Federal tax credits contribute to major savings.
For example, if your home solar installation costs $16,000, you would qualify for a $1000 Arizona state tax credit and a $4,160 federal tax credit. That brings the total cost of installation down to $10,840. And with Arizona’s ideal climate for solar, you could feasibly pay for that investment in energy savings in under 7 years.
That means that from year 8 onward, you’re basically getting free energy compared to the cost of traditional grid power!
It’s a massive opportunity, but hurry – these tax credits are set to decrease starting in 2023.
Additional Incentives and Programs that You May Qualify For
In addition to the tax credits above, there are dozens of possible credits and programs that may apply to your solar installation. These are categorized as residential, commercial, government, and education.
Because there may be incentives and cash-back programs for which you may qualify, we recommend speaking with a Fusion Power consultant who can help you navigate your options.
Residential
Not only do Arizona homes benefit from plentiful sunshine, there are also financial reasons why making the switch to solar is a smart idea. Here is just some of what’s available:
| Mohave Electric Cooperative Renewable Energy Incentive Program | Mohave Electric Cooperative will provide rebates of up to $2,500.00 for residential solar systems. |
| Energy Equipment Property Tax Exemption | This incentive states that solar systems add no taxable value to a property, essentially making any additional value added tax-free. |
Commercial
Businesses in Arizona can also save money on their monthly power bills all while receiving cash back incentives, tax breaks, and more… all by switching to renewable solar energy. Here are some examples of the programs available:
| Energy-Efficient Commercial Buildings Tax Deduction | This provides a corporate tax deduction of up to $1.80 per square foot for energy-efficient commercial buildings. This is now a permanent deduction. |
| Mohave Electric Cooperative Renewable Energy Incentive Program | Mohave Electric Cooperative will provide rebates for small commercial solar systems. |
Government & Education
With dozens of state and federal policies and programs affecting solar, there may be several incentives which apply to your solar installation. Some of the top solar incentives and policies for government buildings include:
| Arizona Energy Conservation Standards for Public Buildings | Guidelines put in place to ensure all new AZ state buildings meet certain energy efficiency standards |
| Arizona Solar Design Standards for State Buildings | A new law that requires all state building projects over 6,000 square feet to follow specific solar design standards. |
Request a Free Consultation to See Which Programs and Incentives You Qualify For
The above list is only a fraction of the 50+ programs and incentives available for Arizona solar installations. Depending on the type of installation and your solar components, you may be able to benefit from several more rebates, incentives, and policies not listed here.
However, there may be a catch: many of these Arizona solar incentives, programs, and policies have expiration dates or decrease funding with time. That’s why you should contact the experts at Fusion Power today. As one of Arizona’s largest solar companies, Fusion Power’s consultants are experts in helping customers navigate the best savings options for them. Start saving money today by requesting a free consultation.
