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Arizona Solar Incentives

As one of the sunniest states in the country, Arizona is a paradise when it comes to solar power.1 So it’s no surprise that it consistently ranks in the top 10 solar states in the U.S.2 While generous sun is the biggest factor, Arizona’s solar incentives and the federal solar tax credit help to contribute to its competitive solar capacity.

Arizona Solar Incentives, Rebates and Tax Credits

Solar Savings Types Value of Savings
Residential Solar Energy Credit 25% the cost of the system3
Sales Tax Exemptions Solar system sales tax exemption 4
Property Tax Exemptions Property tax exemption on added home value from solar system5
Federal Solar Tax Credit 

26% of the final cost of the solar system6

**Customer’s ability to monetize rebates, incentives and tax credits depends on several factors, including, without limitation, continued state subsidization of these policies, the applicable Sunrun product type, and whether a customer purchases or leases a solar system from Sunrun.

Residential Solar Energy Credit

Arizona home solar system owners are eligible for a credit worth 25% of their system cost or up to $1,000, whichever is less. If the credit exceeds the taxes you owe, you can continue to carry it over for up to five years.3

Energy Equipment Property Tax Exemption

Homeowners understand the value of property tax exemptions, so it’s good news that Arizona is offering an Energy Equipment Property Tax Exemption.4 And since purchased solar systems may increase the value of your home by up to $15,000 on average,5 you’ll get even more bang for your buck if you decide to move.

Solar and Wind Equipment Sales Tax Exemption

Arizona’s Solar and Wind Equipment Sales Tax Exemption6 is a welcome addition to the incentives available in the Grand Canyon State. That means you can pocket the extra 5.6% state sales tax you would normally pay when you buy a home solar system and battery.7

Federal Solar Tax Credit*

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. The federal solar tax credit gives you a dollar-for-dollar reduction against your federal income tax. The 30% tax credit applies as long as the home solar system is installed by December 31, 2019. Starting in 2020, the value of the tax credit will step down to 26%, and then again to 22% in 2021. After 2021, the tax credit for residential solar ends.8Learn more about federal solar incentives.

Go Solar Your Way With Sunrun

At Sunrun, we understand that everyone's financial situation is different. Whether you want to own your system and your solar incentives or simplify them with a solar lease for as little as $0 down, we offer a range of flexible financing options, all of which help you claim your slice of Arizona sun. 



Join over a quarter million American households who have gone solar with Sunrun. Whenever you’re ready, our solar advisors are here for you. To get started, get your free quote today.

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Sources:

https://www.washingtonpost.com/news/wonk/wp/2015/07/13/map-where-america...

https://www.seia.org/research-resources/top-10-solar-states-0 

https://www.azdor.gov/Portals/0/Brochure/543.pdf 

https://programs.dsireusa.org/system/program/detail/1683

https://news.energysage.com/home-solar-power-increase-property-values-ac...

https://programs.dsireusa.org/system/program/detail/119

https://www.avalara.com/taxrates/en/state-rates/arizona.html

https://www.seia.org/initiatives/solar-investment-tax-credit-itc

https://www.nrel.gov/docs/fy18osti/70384.pdf

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