What Are the Incentives to Purchasing a Residential Solar System?

Sabrina Lopez
February 5, 2016
3 min read

Residential_Solar_Image-2If you are an Arizona homeowner interested in upgrading your space with a green-living investment, consider enhancing your home with a residential solar system. Investing in solar power is easily achieved in our sunny state, as the solar industry has vastly grown over the past decade. Reduced utility costs are wonderful benefits of solar power, and recent research has even shown that buyers are willing to pay an average of $15,000 more for a home with a solar energy system installed. Another huge benefit of this type of home upgrade is the various solar incentives residents can take advantage of:

Solar Incentives

Because society understands the value of switching to clean, alternative, renewable energies, incentives for homeowners to convert to solar power have historically been offered at the federal, state, and local Arizona utility levels.

Federal and State Incentives

When you purchase and install a solar electric system on your home, one of the biggest incentives you can receive is through the federal Solar Investment Tax Credit (ITC), where you can take a tax credit off your personal income tax return for 30% of the solar system cost (with no cap). This can be taken all in one year or over five years. At the state level, in Arizona, there is no sales tax charged, and you can receive a state income tax credit of up to $1,000 for a solar purchase.

Solar Credits

Through net metering, many local Arizona utility providers will give their solar customers credits when they produce more energy than they use. These solar credits can then be used when utility costs rise during the warm spring and summer months. With few exceptions, most Arizona utilities offer some net metering programs, but the details of each program differ dramatically. For example, some utilities credit their customers month-to-month, while others deliver credits in a lump sum at the end of the year. Our solar experts can help explain the programs available to you, and optimize your system and rate plan accordingly. 

Where to Find Solar Incentives
The N.C. Clean Energy Technology Center, funded by the U.S. Department of Energy at N.C. State University has created one of the most comprehensive systems in the country to search and learn about information on incentives and policies that support renewables and energy efficiency. This system is called DSIRE©, and it allows information to be easily filtered by state. Information on this site is constantly updated, making it straightforward for those applying for incentives, as the current requirements are listed.

Solar systems are a great addition for Arizona homeowners, as the benefits likely outweigh the costs. Solar power reduces cost, encourages and supports green living in your community, and enhances your overall lifestyle. Be sure to speak with a residential solar system expert to learn more about the solar incentives available to you.

If you want to take advantage of a great time to switch to solar and start building up your energy credits, we invite you to request a free assessment and estimate. You can also download our exclusive solar guide that will help you understand some of the most important considerations when switching to clean solar energy.