Arizona Solar Incentives
- Arizona
- Solar Resources
- Energy Resources
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, & 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 (ITC) |
30% of the total system cost 6 |
**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 Investment Tax Credit (ITC)*
In addition to Arizona’s solar incentives, you’ll be eligible for the federal solar Investment Tax Credit (ITC) if you buy your own home solar system outright. The ITC can reduce the cost of a solar installation by 30%,8including a solar battery purchase.9 That means if you purchase a 6-kilowatt system for $18,300, you’ll pay $12,810 after you receive your tax credit.
The ITC is scheduled to drop to 26% in 2020, then 22% in 2021. After 2021, the tax credit is slated to be phased out. That’s why there’s no better time than now to control your own energy. Learn more about federal solar incentives.
