May 12, 2023
Arizona Solar Tax Credit and Incentives Guide for 2023
Arizona Solar Tax Credit and Incentives Guide for 2023
The general concern for our planet in the last few decades has centered around the human impact – more specifically, the impact of our need for resources. Energy consumption has only increased with the advent of technology and innovation. Fortunately, there are renewable energy sources that can help us reduce our carbon footprint.
More people are looking toward renewable energy solutions, and Arizona is not getting left behind. As the use of solar energy takes center stage, Arizona has also done its best to help in this fight to make renewable energy accessible and affordable for all its residents.
Solar Power in Arizona
To encourage residents to choose renewable energy resources, the government provides certain incentives for making the switch to solar power. The US has created a set of solar incentives to reward people who choose to make use of renewable energy solutions.
The Grand Canyon State has its 3 largest utility providers - Arizona Public Service (APS), Tucson Electric Power (TEP), and Salt River Project (SRP) - which all provide a solar export credit at a compensation rate approved by the Arizona Corporation Commission. This system is similar to net metering by allowing you to generate credits on your utility bill for the unused electricity that your solar system generates.
The dollar amount varies by the utility and may change slightly over time but stands at this currently:
- Arizona Public Service (APS): Approximately 9.4 cents/kWh
- Tucson Electric Power (TEP): Approximately 7.8 cents/kWh
- Salt River Project (SRP): Approximately 2.8 cents/kWh
Additionally, new homeowners installing solar equipment using these 3 utilities in Arizona switch to time-of-use rates - a billing structure that charges you differently based on the time of day you use energy. This saves you additional money and guarantees a better return on your investment. Apart from this, Arizona state also has a range of incentives and credits that can be taken advantage of to ensure that your move to renewable energy is less expensive.
Arizona Solar Incentives and Tax Credits for 2023
Federal Solar Tax Credit
The Federal Tax Credit – also known as the ITC or Residential Clean Energy Credit - is available to homeowners and businesses that install solar PV energy systems. According to the Office of Energy Efficiency and Renewable Energy, the federal tax credit is worth 30% of the cost of installing solar and battery storage systems.
The department has a comprehensive guide to making good use of the solar federal tax credit. The ITC will remain at 30% until 2032 and - starting on the 1st of January 2023 - can also be applied to battery storage that isn’t hooked up to solar. This tax credit is worth US$ 6,000 on a US$ 20,000 solar system – effectively reducing the net cost to US$ 14,000.
Arizona State Residential Solar Tax Credit
Most Arizona residents are also eligible for the Arizona State Residential Solar Tax Credit which offers 25% of the total system’s cost - up to a maximum of US$ 1000 in total.
People owing less taxes than the credit can roll it over for up to five years. Homeowners will need to have a state tax liability to qualify for this solar tax credit. The solar energy devices that qualify for the Arizona Solar Tax Credit include:
- Passive solar building systems
- Solar daylighting systems
- Solar PV systems
- Solar PV phones
- Solar PV streetlights
- Solar swimming pool and spa heating systems
- Solar water heating systems
Energy Equipment Property Tax Exemption
According to the Energy Equipment Property Tax Exemption, your solar panels are eligible for a property tax exemption if the installation increases the value of your home. This means that you may be exempt from paying taxes on that increased value.
To qualify for the property tax exemption, the property owner must provide their county assessor with documentation that can confirm the actual purchase and installation - including the costs of the eligible equipment.
In addition to solar panels, this property tax exemption extends to:
- Solar thermal process heaters
- Solar pool heaters
- Passive solar technology
- Solar space heaters
- Solar water heaters
- Solar thermal electric
- Other solar-powered appliances
Solar Equipment Sales Tax Exemption
The state also provides a sales tax exemption for the retail sale of solar energy devices and the installation of solar energy devices by contractors. This exemption does not apply to batteries, controls, and other elements of the setup that are not part of the system.
5 Great Benefits of Home Solar Power in Arizona
Change can be difficult and investing in a new energy source can be even more so. That’s why we’ve taken the liberty of listing the top 5 benefits of making the move to solar power in Arizona:
Solar Savings are Driven by Federal and State Incentives
These incentives are usually tax credits, rebates, or other financial incentives offered by governments, utilities, or other organizations. These help to encourage people to choose sustainable solutions by drastically lowering the costs of installing renewable energy solutions. Additionally, solar incentives can help stimulate the growth of the solar industry, create new jobs, and promote economic growth.
Increases Your Home’s Value
The use of renewable power increases the value of your home in several ways. Solar panels will dramatically increase the value of your property by lowering the monthly expenses for homeowners and making the property a worthy investment.
Installed solar panels also make homes look more environmentally friendly and sustainable, which is a great selling point. for higher prices and increase the entire neighborhood’s worth. An area that includes solar panels in its design is more likely to have a higher estate value.
Reduces Your Monthly Energy Expenses
The general misconception is that sustainable living requires a thicker wallet. This is far from the trust as solar energy solutions easily make up the investment within a short period. Solar panels have the advantage of reducing utility bills exponentially and helping you to avoid the rising energy costs of fossil fuels.
Increased Energy Flexibility with Solar Battery Storage
Choosing a solar generator means you have the flexibility to go wherever you need to go without worrying about a power backup system. Take a break and enjoy outdoor activities while easily keeping your devices and appliances charged and functional wherever you are. Solar-powered battery storage means seamless power - even in a blackout or storm.
Preparation For The Future While Lowering Energy Costs
Generally, the amount that you spend to install and implement a solar-powered energy system will pay for itself in the long run. The Office of Energy Efficiency and Renewable Energy has also confirmed that solar panels take significantly less energy to fabricate than they produce over their lifetime. This means that your move to solar energy will eventually sustain itself and give you peace of mind knowing that your investment was worth it.
Mango Power Solar Generators: Ideal for Arizona
Mango Power ensures safe and reliable energy products to help create a zero-carbon emission future for us all. With the use of advanced technology and intelligent design, the Mango Power range of solar generators and equipment remains the best choice for starting and maintaining your renewable energy lifestyle.
Mango Power offers sustainable solutions for all your solar power backup needs and the Mango Power E is easily our most impressive portable solar generator.
Key Features of the Mango Power E
- The Mango Power E has an impressive 3.5 kWh battery capacity. This can also easily be expanded up to a 14kWh capacity with additional units.
- The output power ranges between 3000 and 6000W.
- The device features multiple charging methods. Easily and quickly charging up to 100% in only 1,5 hours through any of the numerous EV charging stations found around the country, through grid charging, through efficient solar panel charging, and charging through a generator.
- Can be connected to cater to a 240v split phase for heavy-duty appliances.
- Makes use of ultra-durable LFP battery cells that charge faster, last longer, and are more reliable than other traditional NCA/NCM battery cells.
- Features 16 different output ports and 6 different types of outlets.
- A 5-year service life.
Benefits of Using the Mango Power E Solar Generator
Mango Power features an amazing range of renewable energy solutions that will ensure that you stay eligible for a tax credit, solar incentive, or rebate in almost every state. The Mango Power E does all this while still providing many other advantages for users:
Provides Effective Emergency Backup Power
Say goodbye to power cuts with the Mango Power E and ensure seamless power even in a blackout. Keep the lights on, devices charging, and your home warm and safe - no grid cuts will affect you with the Mango Power E in your home.
Portable And Easy To Use
The Mango Power E is also simple to use and even features a convenient Mango Power app that lets you customize your device’s settings from anywhere.
Cost Efficient and Environmentally Friendly
The Mango Power E helps you save on utility bills and growing fuel prices. The Mango Power E is also great for the environment. The device provides a 0.79 kg reduction in carbon emissions with every recharge - equivalent to the amount of carbon captured by 48 trees in a day.
Appreciate the full range of benefits of solar energy solutions with Mango Power while saving money and the planet.
Choose Mango Power
Now more than ever, solar power is taking the world by storm. Aside from the environmental impact, solar power has proven to be cost-efficient, flexible, and overall, a better option in the energy solution crisis. With the numerous incentives available to Arizona residents, it’s crucial to get ahead and begin your solar-powered journey today with Mango Power.
Mango Power is your one-stop solution for superior solar-powered generators and equipment. Maintain your home’s backup power supply with Mango Power for products that are catered to save you money, keep your home powered up, and protect the environment. Make the right choice for your home and choose Mango Power.
Contact Mango Power to find out more about our commitment to a better world by visiting mangopower.com.