Arizona Solar Panel Incentives

This credit offers 25 off the gross cost of the system up to a maximum credit of 1 000.

Arizona solar panel incentives. 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. The exemption is for 100 of the sales tax on eligible equipment. That reduces your cost after the first year to only 16 472.

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. Arizona has a solar tax credit too which will take another 1 000 off for a new total of 18 048. This puts the average cost of a 5kw system at 13 958 before incentives and 9 325 after claiming incentives.

After the tax credits we subtract your first year s energy savings which we estimate to be about 1 576. 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 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. Arizona solar and wind equipment sales tax exemption this incentive is a state sales tax exemption.

The 30 tax credit applies as long as the home solar system is installed by december 31 2019. 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. At the end of 2020 the amount of the credit will decrease from 26 to 22 of the cost of the solar installation. 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 and massachusetts for instance currently give state income tax credits worth up to. Many states also offer tax credits for solar. The federal solar tax credit gives you a dollar for dollar reduction against your federal income tax. Aps uses the recs to demonstrate compliance with the state s renewable energy standard res.