Arizona’s abundant sunlight makes it an ideal place for solar power, but solar panels are pricier here. High energy consumption due to extreme temperatures results in larger, costlier solar systems. However, residents can offset costs by tapping into federal, state (tax credits Arizona), and local solar incentives.
In this blog, we will talk about the challenges Arizona residents face while opting for solar, along with how tax credits Arizona and rebates can save costs for solar installer.
Challenges with going solar in Arizona and how to avoid them
Despite ongoing initiatives such as incentivizing solar manufacturers and implementing economic development programs, there is a clear necessity for increased collaboration among its diverse sectors, involving installation, development, and manufacturing. Here we have talked about various challenges in going solar and how one of the best Arizona solar companies, Sunny Energy can help overcome them:
1. High initial costs:
Installing solar panels is an investment, and the upfront solar panel installation costs can be a significant barrier for many homeowners. While Arizona has some of the best sunshine in the country, the initial system purchase and installation can still be daunting. Financing options and government incentives can help, but affordability remains a hurdle for some.
How can Sunny Energy help?
Sunny Energy as the best solar company in Arizona offers excellent prices for high-performing solar that optimizes your savings and return on investment. Plus zero-down, low rate financing programs as a trusted Arizona solar company.
2. Changes in net metering policies:
Net metering allows homeowners to sell excess solar energy back to the grid, offsetting their electricity bills. Arizona previously had a favorable net metering policy, but recent changes have decreased the value of energy credits. This makes the payback period for solar systems longer, reducing the financial incentive for some potential customers.
How can Sunny Energy help?
Being one of the best Arizona solar companies, Sunny Energy has ways to help you use more of your own solar energy, even at night, making net metering a thing of the past that is no longer needed as a leading solar company in Phoenix.
3. Lack of awareness:
Many homeowners are still unaware of the benefits of solar energy, or may have misconceptions about its cost and effectiveness. Without proper education and outreach, people might be less likely to consider solar even as a viable option.
How can Sunny Energy help?
Sunny Energy’s consultants will spend time with you to understand your needs and about solar that you wish to know, for better decision making in the purchase when choosing Arizona solar contractors.
4. Reduced credit rates for excess power:
As more people adopt solar, utilities may decrease the value of credits offered for excess energy fed back to the grid. This makes solar less attractive, as homeowners earn less for the energy they produce.
How can Sunny Energy help?
Like net metering, Sunny Energy helps you overcome the low rates utilities pay for excess solar energy kWh you produce, while keeping your excess energy out of the hands of your utility bills.
5. Interconnection regulations:
The process of connecting your solar system to the grid can be complex and involve various permits and approvals. This adds to the time and cost of going solar, further discouraging potential adopters.
How can Sunny Energy help?
Considered as one of the best Arizona solar companies, Sunny Energy’s consultants will help you simplify processes of permits and approvals.
6. Roof suitability:
Not all roofs are ideal for solar panels. Factors like size, angle, and existing damage can affect the feasibility and efficiency of a system.
How can Sunny Energy help?
Sunny Energy will help you assess your roof before installing solar. Most roof issues can be easily fixed prior to solar installation.
7. Maintenance and repairs:
Solar panels require occasional cleaning and may need component replacements over time. These additional costs need to be factored into the overall investment.
How can Sunny Energy help?
Sunny Energy chooses solar equipment with warranties as much as 25 years. Along with a 25 year production guarantee, and 10 year workmanship warranty, most repair costs will be covered.
8. Limited solar rights:
Some homeowners living in communities with homeowners’ associations might face restrictions on installing solar panels.
How can Sunny Energy help?
Sunny Energy has been around long enough to know how to help with these situations and letting you know about your rights. In fact, Arizona laws prohibit Homeowners Association from not allowing solar installations. Like all other challenges, we’ll make efforts to make solar work for you.
With all the challenges Arizona stands tall as a frontrunner in the solar energy race, offering residents a wealth of incentives to make the switch to clean, renewable power. The state’s commitment to solar energy is evident in its favorable policies, making it a top choice for homeowners seeking to reduce their carbon footprint while enjoying substantial financial savings. As a leading solar installer and expertise of over a decade Sunny Energy can help you overcome these challenges efficiently.
Now, we will discuss what are the different tax credits Arizona has to offer.
What is Federal Solar investment tax credits Arizona and how does it impact residents?
The Federal Solar Tax Credit (ITC) is a powerful incentive encouraging homeowners and businesses to switch to solar energy. It allows you to claim a 30% tax credit on the total cost of installing a qualified solar energy system. This translates to significant savings on your upfront investment in solar panels and related equipment. The investment tax credits Arizona apply to systems installed until December 31, 2032. After that, the credit reduces gradually until reaching 20% in 2026 and expires in 2032. There are specific eligibility requirements for claiming the ITC. Consult with a qualified solar installer or tax professional to ensure your system qualifies.
Here’s how the ITC impacts Arizona residents specifically:
1. Reduced system cost:
By claiming the 30% ITC, Arizonans can significantly lower the upfront cost of installing a solar system. This makes solar energy more accessible and financially attractive for a wider range of residents.
2. Combined savings with federal incentives:
Arizona boasts an additional 25% capped at $1,000 Residential Solar Energy Systems tax credits Arizona on top of the federal ITC. This means residents can potentially shave 55% off the overall cost of their solar system, further boosting its financial feasibility.
3. Increased solar adoption:
The combined federal and state tax credits Arizona act as powerful motivators for Arizonans to switch to solar power. This contributes to increased solar energy adoption in the state, leading to environmental benefits and reduced dependence on fossil fuels.
4. Economic growth:
The growing solar industry in Arizona creates jobs and stimulates the local economy. With more residents opting for solar power, demand for installation services, equipment manufacturing, and related sectors increases, generating jobs and economic activity.
State-level solar incentives in Arizona
Arizona’s commitment to solar energy doesn’t stop at the federal level. The state has implemented a range of incentives to encourage residents to adopt solar power. Combined, these incentives make Arizona a very attractive state to go solar. The upfront cost reduction, ongoing tax savings, and potential for energy bill savings can significantly shorten the payback period for your solar investment. Here are some of the key state-level incentives:
1. Residential clean energy tax credits Arizona:
These tax credits Arizona allow you to reclaim 25% of your solar panel installation costs, up to a maximum of $1,000. This effectively reduces the upfront cost of going solar, making it more financially attractive.
2. Solar panels tax exemption:
Arizona completely exempts the purchase of solar equipment from sales tax. This means you save directly on the cost of panels, batteries, and other essentials when buying your system.
3. Property tax exemption for energy equipment:
Your solar energy system is considered exempt from property taxes in Arizona. This means you won’t see an increase in your property tax bill due to installing solar panels, further adding to its financial benefit.
4. Net billing:
This policy allows you to sell any excess solar energy your system generates back to the utility grid. You’ll receive credits for the energy you send back, which can be applied to your future electricity bills. This allows you to potentially offset your entire electricity usage and even generate small credits on your bill.
Local level solar incentives in Arizona
Here are some local incentives listed as examples of local solar incentives offered in Arizona:
1. APS – Residential Energy Efficiency Rebate Program:
This initiative offers rebates for a variety of energy-saving measures, such as the installation of energy-efficient appliances, HVAC systems, insulation upgrades, and smart thermostats. Homeowners can receive financial incentives to offset the costs of making their homes more energy-efficient, contributing to both reduced energy consumption and lower utility bills.
2. Mohave Electric Cooperative Energy Efficiency Rebate Program:
This program offers rebates for various energy-saving measures, including solar panel installations. The size of the rebate depends on the system size and the specific type of equipment installed.
3. Salt River Project (SRP) net metering:
SRP is a major utility provider in Arizona and offers net metering for homes and businesses with solar panels. This means your solar system can generate electricity to offset your energy needs from the grid. Any excess electricity produced is sent back to the grid, and you receive credits on your bill.
4. Tucson Electric Power (TEP) solar buyback program:
TEP offers to buy back excess solar energy produced by residential customers at a fixed rate.
5. Yuma Energy Cooperative Smart Home Solutions:
This program offers rebates for solar panel installations and other energy-saving upgrades.
Is net metering in Arizona profitable?
While Arizona ditched pure net metering in 2016 with a few exceptions, you can still save on your electricity bill with solar. The current net billing program credits you less (around 8-9 cents/kWh) for excess energy but offsets your grid usage. Profiting directly isn’t possible anymore, but savings depend on how much solar power you generate and your usage patterns. Demand charges and future policy changes could also impact your overall benefit.
Embrace solar power with the best Arizona solar companies: Sunny Energy
Arizona’s commitment to solar energy is evident through its generous incentives at the state and local levels. From tax credits in Arizona to property tax exemptions and innovative programmes, residents have a golden opportunity to embrace clean, renewable power while enjoying significant savings. As the sun continues to shine over Arizona, the future looks bright for those who choose to harness its power and contribute to a more sustainable and eco-friendly tomorrow. So, if you are looking for a solar power companies near me, and solar company in Phoenix, then Sunny Energy is ready to help you in making the switch to solar? Contact Sunny Energy, one of the best Arizona solar companies and your trusted solar installer in Arizona, and start your journey towards a brighter and greener future today!
