Arizona is a leading state in the national solar power and renewable energy initiative. Beneficial solar laws, rebates, property and sales tax exemptions, and constantly raising high electric prices make going solar in Arizona a very wise economic decision. Arizona offers a sizable state refund for going solar.
In addition, the Federal Government offers a 30% tax credit for the whole installed cost of your system That’s a huge benefit available to you no matter where you live in the US! Call Total Solutions today to talk about the incentives available in your area.
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Arizona Renewable Portfolio Standards
A regulation that requires utilities to increase their production of energy from renewable energy sources, such as wind, solar, biomass, and geothermal by a certain date inArizona have very strong RPS (Renewable Portfolio Standards). Two ways a utility company must meet the standards is by either producing their own renewable energy or by purchasing it from customers. They look at paying some very high fees if the standards are not met. Rather than paying high fees, utilities in strong RPS state offer solar incentives to homeowners. Arizona’s RPS mandate that 15% of all energy must come from renewable sources by 2025.
Arizona RPS Solar Carve Out
Solar carve outs require a certain percentage of the Renewable Portfolio Standards to be met with solar energy.
Arizona’s solar carve out s 2.25% by 2025.
Arizona State Electric Rates
A state’s electric rates are one of the key factors in predicting whether an investment in solar panels makes sense. Out of the fifty statesArizona’s electric rates rank is 18th.This is caused by solar power being in direct contention with electric rates. Low electric rates make it hard for you to get a significant payback from your solar power investment. Higher electric rates make an investment from Total Solutions in solar energy much more feasible. Arizona’s high electric rates make investing in solar power more and more attractive every year.
Arizona Net Metering
Arizona offers excellent net metering laws. Net metering is a system in which solar panels or other renewable energy generators are connected to a public-utility power grid and surplus power is transferred into the grid, allowing customers to offset the cost of power they get from the utility company. When you pull in electricity from your solar system for your home or business, it reduces the amount of energy you purchase from your electric utility companies. It also lowers your monthly electricity bills If your system produces more energy than you need, the excess power is sold back to the energy company for a set amount per kilowatt. That amount of energy is deducted from your monthly bill or credited toward a future bill.
Arizona Interconnection Standards
Interconnection standards are requirements for connecting solar and other electrical generation systems to the grid. Both electricity customers and utilitie companies are subject to these standards. Arizona has no statewide interconnection standards which would make the interconnection process less complex and expensive. This can be a definite benefit when trying to bring a solar energy system up and running and makes it easier for a solar power system to make financial sense.
Arizona State Energy Rebates
Solar power rebates are incentives federal or state governments that allows Total Solutions to be able to offer a reduction in the cost of going solar. Arizona has a state rebate program. You can choose to receive a lump sum payment, or your installer will take the amount off the final installed price. Rebates require paperwork to be filed. Total Solutions will handle all the paperwork for you. Talk with an expert solar installer to see how to qualify. Remember, as for now the Federal rebate for installed solar systems is 30% which is subject to change or disappear every year that passes.
Arizona State Energy Tax Credits
Arizona offers state solar tax credits — 25% of the total system cost, up to $1000. As a credit, you take the amount directly off your tax payment, rather than as a deduction from your taxable income. You can claim the credit for your primary residence, vacation home, and for either an existing structure or new construction. Total Solutions will help you calculate all the credits you may be eligible for.
Arizona Property Tax Exemptions for Energy
Arizona offers property tax exemptions for installed solar systems from Total Solutions and other solar companies. Property tax exemptions allow businesses and homeowners to exclude the added value of a system from the evaluation of their property for taxation purposes. A Solar PV system can increase the value of your home by a multiple of 20 times your annual electricity savings (a 5kW system increases the value of your home close to $17,000). A property tax exemption makes it more financially doable for a taxpayer to install a solar system on a residential or commercial property.
Arizona Sales Tax Exemptions for Energy
Arizona offer sales tax exemptions as well. That could be as much as 5.6% savings right off the top. A sales tax exemption means that homeowners and businesses would not have to pay any state sales tax on their solar panel system. Combine Arizona’s high electric rates, state rebates, property and sales tax exemptions, the falling costs of solar equipment and installation not to mention the 30% Federal tax rebate and you have compelling reasons to go solar in Arizona! Call today and see how Total Solutions can help you!