The Sun Loves Arizona
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Arizona loves solar. In fact, to help make solar its most attractive, the state has implemented a variety of incentives to help you adopt this technology. Take a look at the incentives available for you in this amazing state.
State Incentives
- Homeowners in Arizona are able to save money at tax time by claiming 25% of the cost of their system, up to $1000, against their state taxes. The homeowner is eligible as long as they are not the dependent of another taxpayer.1
- Installing a solar system adds value to your property, but, your taxes will not increase because of the Arizona property tax exemption.2
- Many stores in Arizona sell solar energy equipment sales tax free. The retailer must be registered with the State's Department of Revenue to be eligible to offer these perks to customers, so be sure to ask before you buy.3
- The state has legislated that if a municipality decides they need the stamp of an engineer on a solar construction permit, they must provide the homeowner with a written explanation as to why.4
- Homeowners, condos or other boards and associations cannot prohibit your solar project, thanks to Arizona State Law.5
In addition to these great incentives and programs supporting solar energy in Arizona, cities, utilities and the federal government are incentivizing you to improve your relationship with the sun.
City of Tucson Incentives
If you live in the City of Tucson, there is an added bonus you should take a look at:
As of 2008, all new single and two family builds in Tucson must, "include an acceptable method to allow for later installation of a system which uses solar energy as a means of providing electrical power." If you own or buy a property built after 2008, you are in luck; your home was built with solar power in mind.6
Utility Incentives
You may be able to capitalize on further incentives from your utility provider.
- The Duncan Valley Electric Cooperative provides their customers with a rebate of 5 cents per installed watt of a photovoltaic system, up to a maximum of $500. This means in order to get the maximum rebate, you can invest in a 10-kilowatt system, saving you money on your installation and electric bill.7
- If you are a customer of The Mohave Electric Cooperative, you can save money on your solar installation as well, through the Renewable Energy Incentive Program. This program provides you with a rebate of five cents per watt up to 50 kilowatts or $2500.8
PACE Financing
PACE (Property Assessed Clean Energy) financing is a program that will loan the entire cost of an eligible energy upgrade to a homeowner. It can then be repaid over a period of up to 20 years without any extra bills to keep track of. The cost is added to your property tax bill.9 PACE Financing is currently only available in select states. Unfortunately, Arizona does not have any PACE Financing programs at this time.10
Federal Incentives: Act Now to Get the Most Benefit
As a way to promote clean and renewable energy, the federal government has put in place two nationwide solar incentives that are available to Arizona residents. Homeowners should apply for them shortly after installation is complete. Your LG PRO installer can help you understand these incentives and how to apply.
- The Federal Solar Tax Credit allows Americans in any state to deduct 26% of the cost of their residential solar installation from their federal taxes, dollar for dollar, through the end of 2020. The ITC then steps down to 22% for projects that begin construction in 2021. After 2021, the residential credit is scheduled to drop to zero, although a commercial and utility credit will remain.11 So lock in your ITC advantage by going solar now!
- Customers of a public utility can save money at tax time because the money, credits or subsidies they earn are not taxable.12
Arizonans have plenty of incentives available to help them optimize their energy production plans. We can help you find out which incentives apply to you and help you take the next step on your solar journey.
References
1. Arizona State Legislature. "43-1083 Credit for solar energy devices". Arizona State Legislature. Arizona State Legislature. n.d.
www.azleg.gov/viewdocument/?docName=https://www.azleg.gov/ars/43/01083.htm. 30 Nov. 2018.
2. Arizona State Legislature. "42-11054 Standard appraisal methods and techniques". Arizona State Legislature. Arizona State Legislature. n.d.
www.azleg.gov/FormatDocument.asp?inDoc=/ars/42/11054.htm&Title=42&DocType=ARS. 30 Nov. 2018.
3. Arizona State Legislature. "42-5159 Exemptions". Arizona State Legislature. Arizona State Legislature. n.d.
www.azleg.gov/ars/42/05159.htm. 30 Nov. 2018.
4. Arizona State Legislature. "9-468 Solar construction permits; standards". Arizona State Legislature. Arizona State Legislature. n.d.
www.azleg.gov/viewdocument/?docName=http://www.azleg.gov/ars/9/00468.htm. 30 Nov. 2018.
5. Arizona State Legislature. "33-1816 Solar energy devices; reasonable restrictions; fees and costs". Arizona State Legislature. Arizona State Legislature. n.d.
www.azleg.gov/viewdocument/?docName=http://www.azleg.gov/ars/33/01816.htm. 10 Dec. 2018.
6. City of Tuscon. "Mayor & Council Communication Residential Solar Readiness Ordinance (Citywide)". City of Tuscon. City of Tuscon. 17 Jun. 2008.
www.tucsonaz.gov/files/pdsd/pdfs/GreenBuilding/june17-08-311.pdf. 30 Nov. 2018.
7. Touchstone Energy Cooperative. "SunWatts". Duncan Valley Electric Cooperative. Touchstone Energy Cooperative. n.d.
www.dvec.org/content/sunwatts. 30 Nov. 2018.
8. Touchstone Energy Cooperative. "Sunwatts Renewable Energy Incentive Program". Mohave Electric Cooperative. Touchstone Energy Cooperative. n.d.
https://www.mohaveelectric.com/sunwatts-renewable-energy-incentive-program. 30 Nov. 2018.
9. PACENation. "About PACENation". PACENation. PACENation. n.d.
pacenation.us/about/. 30 Nov. 2018.
10. PACENation. "Residential PACE Near You". PACENation. PACENation. n.d.
pacenation.us/pace-programs/residential/. 30 Nov. 2018.
11. Solar Investment Tax Credit.” SEIA.
www.seia.org/initiatives/solar-investment-tax-credit-itc. 11 Apr. 2019.
12. Federal Government of the United States. "Title 26 - Internal Revenue Code". Federal Government of the United States. Federal Government of the United States. p.520.
www.gpo.gov/fdsys/pkg/USCODE-2011-title26/pdf/USCODE-2011-title26-subtitleA-chap1-subchapB-partIII-sec136.pdf. 10 Dec. 2018.