Arizona tax incentives for solar power

How do solar incentives work in Arizona?

Arizonans can take advantage of the statewide tax credit, tax exemptions and local rebate programs on top of the 30% federal solar tax credit to dramatically reduce their total system cost. We’ve extensively researched all of the solar incentives in Arizona so you can understand how each one works and get the best deal on your solar system.

Does Arizona have a solar investment tax credit?

Every Arizona resident should know about the federal investment tax credit (ITC), which lets you claim up to 30% of your solar system’s total cost as an income tax credit. Arizonans consume more energy than most other states’ residents, which means they require larger systems to offset their monthly use.

Are there solar rebates in Arizona?

There are no statewide Arizona solar rebates, but it does have the AZ solar tax credit. Arizona’s tax credit is equal to 25% of system costs up to $1,000, and it reduces your state income tax liability. There may be local energy efficiencyrebates and financial incentive programs available to you.

How much can you save on solar panels in Arizona?

Solar panel systems in Arizona are expensive, but incentives from the state and federal governments can help you reduce the upfront cost. Between the federal tax credit and other state-specific incentives, you can save thousands on solar panels, making them well worth the investment.

What tax benefits does Arizona offer for solar panels?

In addition to the great rebates and incentives above, Arizona also offers tax exemptions for solar panel systems. The solar sales tax exemption ensures that you won't have to pay a sales tax on your system, while the solar property tax exemption means you don't need to pay a higher property tax for adding solar panels to your house.

Are solar batteries tax deductible in Arizona?

There is no statewide solar battery rebate or incentive in Arizona. However, energy storage systems qualify for the 30% federal tax credit as long as the battery has a capacity rating of at least 3 kWh. A battery like the Tesla Powerwall 3 costs about $16,000 when fully installed, earning it a tax credit of $4,800!