Arizona Solar Incentives

As one of the sunniest states in the United States, Arizona, Phoenix is among the top five ranked in the country for solar conversion.Since Arizona is situated in the desert, the citizens have the best natural solar resources in the country. 

But installing  solar panels in Arizona can be pricey and prevents residents from accessing renewable energy, all the sunshine in the world would be for naught since it will not be used.

Solar panel tax credits, incentives, and rebates in Arizona

In Arizona, the Mohave Electric Cooperative offers incentives to its consumers for the installation of renewable energy systems in their residences and places of business. The Cooperative will offer rebates for home and small commercial wind and photovoltaic (PV) systems. Only residential systems are eligible for solar water heating rebates. Customers must comply with all pertinent terms and conditions and submit the necessary paperwork.

Residential Solar and Wind Energy Systems Tax Credit - Individual taxpayers who install a solar or wind energy device at their Arizona home are eligible for Arizona's solar energy credit. No matter how many energy devices are placed, a credit of up to $1,000 is provided against the taxpayer's income tax for 25% of the cost of a solar or wind energy device. 

The year of installation is used in claiming the solar credit. The unused portion of the state tax credit may be carried forward for up to five years if the credit's value exceeds the tax liabilities of a payer in a given year. However, the credit is not available to taxpayers who lease equipment or who sign power purchase contracts with a third party who owns the equipment. 

Property Tax Exemption - The initial scope of Arizona's property tax exemption, was limited to "solar energy devices and any other device or system designed for the production of solar energy for on-site consumption." These systems are regarded as having no value to the property for property tax assessment purposes.

Local efficiency program - The first green building program in Arizona focused on residential home construction was Scottsdale's, created in 1998. It was created to promote environmentally friendly building practices in the Sonoran Desert area by utilizing clean, resource- and energy-efficient materials and techniques in the planning and building dwellings.

The program's objectives are to lessen the adverse effects of construction and power plant on the environment, save money both now and in the future on energy, water, and other natural resources, and promote a healthier indoor atmosphere.