Watt Bros Solar

Solar panel system on house roof, sunny blue sky background

Solar panels are great for people across the county. Still, they have some specific advantages for those living in the Grand Canyon State. In many areas of Arizona, sunny days are the norm. Whether you live in Phoenix, Mesa, or Tucson, you may spend most of the year trying to beat the heat. But what if you could make all the sunshine actually help your budget and home instead of trying to fight it?

While running the air conditioner all the time can cause your utility bills to skyrocket, with solar panels, you can cut your energy bills by up to 80%. While a solar system for your home or business is a great way to save money and live more eco-consciously, you may wonder about the costs.

Luckily, with Arizona solar tax credits, you can save money on getting a solar panel system and see all the benefits of switching to solar power. Learn more about tax federal and state tax credit options for solar panels in this guide from Watt Bros Solar.

Solar Tax Credit Arizona

Like most things for your home or business, it is an investment to get a new solar panel system. However, you can save on upfront costs through solar incentives from the government.

Solar tax credits in Arizona are a great way to save money when getting a solar power system. Arizona solar incentives are worth up to 25% of the installation costs of the new solar panels or up to $1,000 dollars, whichever comes first.

People who get a solar system in 2023 will apply these solar incentives to their personal income taxes when they file in 2024.

Federal Solar Tax Credit

Close-up of female hands doing calculations

While the AZ solar tax credit applies to state taxes, you could also receive solar incentives in the form of a federal solar tax credit. The federal option is instead claimed on your federal income taxes for the following year after setting up new solar panels.

This tax credit is for a percentage of the cost of the system that you pay. For 2023, the federal solar tax credit is 30%. This rate will remain the same until 2033, when the federal solar tax credit will decrease to 22%.

This tax credit can only be used for new solar systems. When factoring in the percentage of the costs that can be applied to your federal taxes, you can look at the following expenses:

  • Solar energy devices and their prices, such as the cost of hte solar panels and the PV cells
  • The contractor and labor costs for the assembly and installation
  • Other equipment, such as wiring and mounting devices
  • Energy storage devices
  • Some sales tax

How Do I Know Which Solar Incentives I’m Eligible For?

When deciding if a solar system is right for your home or business, you need to loka t your budget. Still, you can get some assistance paying for the solar system through the various tax credit options.

If you live in Tucson, Arizona, or anywhere else in the state, you may qualify for both state and federal solar incentives. The best way to know what you qualify for and which solar incentives you can get is to talk to an accountant or solar panel professional.

Also, it’s important to note that the tax credit won’t be applied until you file your taxes for the following year after getting the solar power system.

Other Arizona Solar Incentives

While Arizona solar incentives refer to the exact tax credit benefits you’ll receive by getting a new solar system, you can also receive other less quantifiable benefits from switching to solar power.

When determining the cost of your new solar energy devices, you also want to factor in how much you’ll save each year on energy costs. Energy bills can be high in Arizona when you’re trying to cool down your home or business, but with solar power, you can save hundreds or thousands of dollars per year.

Advantages Of A Solar Panel System

Still unsure if a solar panel system is worth it for you? It’s worth evaluating some of the other benefits of a solar energy system. Here are some potential pros of getting a solar system installed:

  • Having less of an impact on the environment by powering your home with a renewable resource
  • Getting a more comfortable home because you’re not as worried about the high energy costs, so you don’t mind using the electricity as often
  • Lowering your electricity bills by up to 80% every month

Why Choose Solar Power

Man installing alternative energy photovoltaic solar panels on roof

There are many reasons to go with a solar power system instead of relying solely on a traditional power grid. By using tax credits to your advantage, you can reduce the total system cost of your new solar panels. With a state solar tax credit and a federal incentive, you’ll save money on solar in the Grand Canyon State.

Cost Of Solar Panels

The best way to know the exact cost of a solar panel system for your home or business is to request a quote from Watt Bros Solar. However, generally speaking, the cost of a new system in Arizona is around 10k, but this number may be lower or higher depending on how many solar panels you need.

High-Quality Solar Power Systems In Arizona

Have questions about the state tax credit in Arizona? Looking at how to make solar incentives work for your benefit? Contacting Watt Bros Solar today to learn more about how we provide affordable, quality solar panel systems to people throughout Arizona. Get a free quote today.

Leave a Reply

Your email address will not be published. Required fields are marked *