SOLAR PV
SOLAR INCENTIVES
30% Federal Investment Tax Credit (ITC)
State of Arizona Tax Credit: $1,000
Utility rebates: Varies by utility and is subject to change without notice (contact us for the latest)
Incentives for homeowners and businesses to convert to solar power currently exist at the federal and state levels, as well as at a small number of Arizona utilities, depending on your location. If you qualify, these incentives can offset more than 30% of a solar purchse, so it's well worth the time to find out what's available in your area.
Below is a quick list of the most important incentive programs to consider when going solar. Please note that the nature of these programs can differ dramatically based on whether you purchase or lease your solar energy system. It's best to check with your accountant to get tax advice, but here are a few details to help kickstart your research.
TAX INCENTIVES: LEASING VS. BUYING
When you purchase a solar energy system for your home or business, you are able to take full advantage of the tax credits that are available at the federal and state level. When you lease, however, whether it’s a monthly lease or prepaid lease, the leasing company actually owns the system and therefore the tax credits as well. Much like leasing a car, you simply make a small monthly payment for the use of the panels and the electricity they generate. In other words, because you don't own the panels, you cannot take advantage of the tax incentives.
FEDERAL SOLAR INVESTMENT TAX CREDIT (ITC)
When you purchase and install a solar electric system for your home or business, one of the biggest incentives you can receive is through the federal solar Investment Tax Credit (ITC). This incentive will offset up to 30% of a solar purchase in the form of a tax credit. To qualify, your system must be installed and commissioned before the end of the tax year you wish to file for.
The 30% ITC is only available through the year 2019, after that the incentive drops to 26% for the year 2020, and then to 22% in 2021 before dropping permanently to 10% for businesses and 0% for residences after 2021.
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ARIZONA STATE TAX INCENTIVES
At the state level, in Arizona not only is there no sales tax charged, but you can receive a state income tax credit of up to $1,000 for a solar purchase. Like the federal ITC, in order to qualify for the Arizona solar tax incentive, your system must be installed and commissioned before the end of the tax year you wish to file for. Learn more about the Arizona tax incentive here
ELECTRICITY PRICES ARE ON THE RISE
With electricity prices only on the rise, going solar is the best way to hedge against the certainty of a higher electric bill and lock in decades of predictable savings for your family and business. And with more than 300 sunny days every year, Arizona's sun is a free, clean and abundant energy resource that's available to all of us equally.
Ask your employer if you get a discount through your company for going solar. Many companies do offer incentives through their HR departments. Or call us at 602-552-3401 and we’ll check to see if your company is on our solar Arizona Alliance list.
Keep in mind that there are still many incentives out there for businesses and commercial buildings as well. Contact our commercial sales team for details at 602-552-3401