Incentives at a glance

    Incentives for homeowners to convert to solar power have historically been offered at the federal, state and local Arizona utilities levels.

    • Federal Investment Tax Credit (ITC): 30%
    • State of Arizona Tax Credit: $1,000
    • Utility Rebate: Varies by provider and subject to change without notice

    30% Federal Solar Investment Credit (ITC)

    When you purchase and install a solar electric system on your home, one of the biggest incentives you can receive is through the federal solar Investment Tax Credit (ITC), where you can take a tax credit off your personal income tax return for 30% of the solar system cost (with no cap). This can be taken all in one year, or spread out over five years.

    Get Federal Incentives Before They End

    At Sun Valley Solar, we say the best day to buy solar is yesterday. As the federal government plans to end ITC in 2022, our hyperbole is becoming truer by the day.

    The 30% ITC is only available through the year 2019. In 2020, the incentive drops to 26%. In, 2021 it drops down to 22%, before it ends permanently for homeowners in 2022. 

    $1,000 Arizona Tax Credit

    At the state level, in Arizona not only is there is 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.

     

    Purchase vs. Lease

    If you’re a retiree looking to keep your tax liability low, then leasing a system is most likely the best option. However, if you're looking to take advantage of tax breaks and have complete ownership of your system, then making a purchase is the likely solution.

    We can help you explore all financing options and help you get started with little to no money out of pocket.

    Where to Find Solar Incentives

     

    The N.C. Clean Energy Technology Center, funded by the U.S. Department of Energy, at N.C. State University has created one of the most comprehensive systems in the country to search and learn about information on incentives and policies that support renewables and energy efficiency. This system is called DSIRE© and it allows information to be easily filtered by state. Information on this site is constantly updated, making it straightforward to those applying for incentives, as the current requirements are clearly listed.

    Solar systems are a great addition for Arizona homeowners to consider, as the benefits more than likely outweigh the costs. Solar power reduces cost, encourages and supports green-living in your community and enhances your overall lifestyle. Be sure to speak with a residential solar system expert to learn more about the solar incentives available to you.

    Have a project in mind? Let's talk solar.