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Solar Incentives In Arizona 2023: Pricing, Tax Credits, & Rebates

Updated: Jul 12, 2023

Solar Incentives In Arizona 2023

In This Article:


Sun-drenched days and clear blue skies... Welcome to Arizona, the veritable heartland of solar power in America. With over 300 days of sunshine each year and temperatures soaring often above 100℉ in many parts of the state especially Phoenix and Tucson, it's no surprise that Arizona is increasingly tapping into the sun's energy. But it's not just about the weather. The state is also awash with solar incentives that make going solar not just an environmentally conscious choice, but a financially savvy one too. Stick around as we delve into the world of solar power in Arizona, where sunshine meets savings.


Key Takeaways

  • Arizona offers numerous incentives for solar energy, including a Residential Solar Energy Tax Credit and Solar Equipment Sales Tax Exemption.

  • The state's high energy usage makes solar panels a cost-effective choice for residents.

  • Local incentives vary, but can be found through utility companies and municipalities.

  • The Arizona Solar Rights Law protects and empowers solar adopters.


The Rise of Solar Power in Arizona

If you've ever stepped foot in Arizona, you'd understand why we're nicknamed the "Sunshine State". Our clear blue skies are a constant invitation for sunlight, making Arizona a veritable solar powerhouse. In fact, we're the sunniest state in the union, and our solar power potential is absolutely phenomenal.

But what does this mean for you? Simple. More sun means more power. With the average Arizonan home consuming over 1,058 kWh per month, we've got the perfect opportunity to convert this sunlight into significant energy savings. Talk about a silver (or should we say, solar) lining!

Why Arizona Residents Are Turning to Solar

Solar power in Arizona isn't just about the sun, it's about the people too. You see, Arizonans are a savvy bunch. We know a good deal when we see one. And with the average cost of installing an 11.5 kW solar system hovering around $30,015, solar has become the go-to energy solution for many of our residents.

But here's where it gets interesting: when you factor in federal tax credits, that price drops down to around $21,010. That's a whopping savings of over $9,000! And we haven't even begun to talk about the additional state and local incentives available.

Plus, there's the environmental impact to consider. Did you know that since 2010, our switch to solar has helped to prevent more than two million metric tons of carbon dioxide from reaching our atmosphere? That's equivalent to planting over 54.6 million tree seedlings and growing them for ten years.

Yeah, I get it, “How do these incentives work?” might be the next question in your mind. Just ride along to find out.

Arizona Residents and Federal Solar Energy Tax Credits

You might be wondering, how can you, as an Arizona resident, tap into these solar benefits. Let's delve into the heart of the matter - The Federal Solar Investment Tax Credit (ITC).

Just picture it... a credit worth up to 30% of your entire solar system cost. Sounds enticing, right? That's what the ITC is all about. Eligibility? Simple. Purchase and install your solar panels before the end of 2032. What's more, if the credit overshadows what you owe in taxes, you can roll it over up to five years! Now, isn't that a ray of sunshine?

How do You Claim the Federal Solar ITC in Arizona

Easy. Claiming your ITC may seem like navigating through a solar maze, but fret not. A trusty solar company - like us - can guide you through it. A pro tip? Work with a tax professional when filing your return. That being said, there are a few steps you can take on your own... Download IRS Form 5695, calculate your credit, check for any rollover credit, and compute any tax liability limitations. Then, just like the sun setting in the west, enter the figure on your Schedule 3 (Form 1040), line 5.

If you're still feeling a tad overwhelmed, don't hesitate to give us a shout. We're here to help turn your solar dreams into a reality.

Net Metering in Arizona

Net Metering

Let's shift gears and explore another solar gem - net metering.

Imagine selling your excess solar energy back to the utility company. That's net metering in a nutshell. It's like having your cake and eating it too... you get to enjoy solar power and lower your electricity bill. Win-win, wouldn't you agree?

How Net metering Works in Arizona

Here's the scoop on net metering in Arizona... Your local utility is required to buy your surplus solar energy at around 75% of the electricity cost. This credit will then be applied to your monthly electricity bills. Think of it as a monthly thank-you note from your utility company for going solar.

If this part of the article interests you, and you want to learn more about net metering and how you can harness its benefits? We're just a call away.

Arizona Solar Equipment Sales Tax Exemption: A Boon for Solar Adopters

Here's a tidbit that might brighten your day... Did you know that when you make the switch to solar in Arizona, you're exempt from the 5.6% state sales tax on your solar equipment? It's like the sunniest state in America is giving you a high-five for going green! This exemption applies to your entire solar panel system, meaning you could save roughly $1,680 on an average 11.5 kW system. Now, isn't that a sweet deal?

How to Avail of the Sales Tax Exemption

It's simple, really. When you purchase your solar panel system, the sales tax is automatically waived. No forms to fill, no hoops to jump through. And guess what? Our team at IntegrateSun is here to guide you through each step, making sure you squeeze out every last drop of this solar benefit. So why not get in touch with us and let's get you started on your solar journey?

Local Solar Incentives in Arizona: Variety Awaits

Local Solar Incentives in Arizona

Arizona isn't just a haven for cacti and rattlesnakes, it's a hotbed of solar incentives too. From Tucson to Flagstaff, many municipalities and utility companies offer their own unique solar incentives and rebates. These can range from direct rebates to performance-based incentives. The best part? These are over and above the state and federal incentives. Double win!

Finding and Applying for Local Incentives: Let's Go Treasure Hunting

Digging up these local solar incentives might feel like looking for a needle in a haystack, but don't worry, we've got your back. At IntegrateSun, we stay up-to-date with the latest local incentives so you don't have to. We guide you through the process, ensuring you leverage every possible benefit.

Energy Equipment Property Tax Exemption

Now, here's a thought... What if your shiny new solar panels didn't add a penny to your property tax bill? That's exactly what the Energy Equipment Property Tax Exemption does for Arizona residents. Any increase in home value after installing solar panels isn't taxed. Yes, you read that right... not a single cent!

So, you can elevate your home's value, enjoy reduced electricity bills, and wave goodbye to increased property taxes all at the same time. Arizona's looking pretty sunny, isn't it?

Arizona Solar Rights Law

Solar rights... ever heard of 'em? If you're considering going solar in Arizona, you'd better get acquainted. The Arizona Solar Rights Law is a big deal for homeowners wanting to switch to solar. It protects your right to install and use solar energy systems on your property, free from unreasonable restrictions.

That's right... no pesky neighborhood association can throw a wrench in your solar aspirations. It's your home, it's your right to harness the sun.

And it gets even better... Not only does the law protect your rights, but it empowers you too. Imagine your home, powered by the sun, contributing to a cleaner environment, and protected by law. That's a powerful combo, wouldn't you agree?

So, what are you waiting for? With these incentives, there's never been a better time to switch to solar in Arizona. Need guidance? We're here to help. Let's tap into the power of the sun together. Remember, when you go solar, not only are you investing in your home, you're investing in our planet.


Does Arizona have any solar incentives?

Yes, Arizona offers several solar incentives, including a Residential Solar Energy Tax Credit, a Solar Equipment Sales Tax Exemption, and Energy Equipment Property Tax Exemption

What are the incentives for solar panels in Arizona 2023?

Does Arizona have a free solar program?

Does Arizona give a tax credit for solar?


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