Arizona Solar Incentives 2024
Arizona is known for its sunny weather and strong solar resource, making it an ideal location for solar power generation. In fact, Arizona is home to some of the largest solar power plants in the world, such as the Solana Generating Station and the Agua Caliente Solar Project.
To encourage the growth of the solar industry in the state, the Arizona government offers a variety of solar incentives for homeowners, businesses, and utilities. These incentives can help offset the upfront cost of installing a solar power system, making it more affordable for Arizonans to switch to clean, renewable energy.
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Solar Investment Tax Credit (ITC):
One of the most significant incentives is the federal solar tax credit, also known as the Investment Tax Credit (ITC). The Solar ITC is a federal program that allows homeowners and businesses to receive a credit on their income taxes for a portion of the cost of installing a solar power system.
In 2023, the solar tax credit is 30% of the cost of installing a solar power system. This credit is set to decrease in the coming years, so now is a good time to take advantage of it.
In addition to the federal solar tax credit, Arizona also offers several state-level incentives to encourage the adoption of solar power. These incentives include:
Arizona Net Metering Program:
One of the main solar incentives in Arizona is the Net Metering Program, which allows solar panel owners to sell excess electricity back to the grid. This means that if your solar panels produce more electricity than you need, you can receive credits on your utility bill for the excess power. These credits can be used to offset electricity costs when your solar panels aren't producing enough electricity, such as at night or on cloudy days.
Arizona Solar Tax Credit:
In addition to Net Metering, Arizona also offers a state tax credit for solar power systems. The Arizona Department of Revenue offers a 25% tax credit for the installation of solar power systems, up to a maximum of $1,000. This credit is available to both homeowners and businesses, and it can be claimed on your state income tax return.
Property Assessment Clean Energy Program:
Another incentive available to Arizona solar panel owners is the Property Assessed Clean Energy (PACE) program. The PACE program allows property owners to finance the cost of installing a solar power system through their property taxes. This means that instead of paying for the solar power system upfront, you can pay for it over time as part of your property taxes. The PACE program is available to both homeowners and businesses, and it can be a convenient way to finance a solar power system.
Finally, Arizona also offers incentives for utilities to invest in solar power. The Arizona Corporation Commission's Renewable Energy Standard requires utilities to generate a certain percentage of their electricity from renewable sources, such as solar power. To meet this standard, utilities can receive credits for generating renewable energy, which they can then sell to other utilities. This helps to drive investment in solar power and encourages the growth of the solar industry in the state.
Get Started With Solar Today!
Overall, Arizona offers a variety of solar incentives to help make solar power more affordable and accessible to homeowners, businesses, and utilities. These incentives can help offset the upfront cost of installing a solar power system and encourage the growth of the solar industry in the state. If you're considering switching to solar power in Arizona, be sure to take advantage of these incentives to make your transition to clean, renewable energy more affordable.
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