Solar Rebates in Arizona

Here’s a detailed overview of solar rebates and incentives available in Arizona:

⚡ 1. Federal Residential Clean Energy Tax Credit (ITC)

• 30% credit on the total cost of your solar system (equipment, labor, permits, sales tax) through 2032, then gradually stepping down to 26% in 2033, and 22% in 2034 the-sun.com+10energysage.com+10solarreviews.com+10energysage.com+2resilient.az.gov+2solartechonline.com+2.

• No cap on credit amount. Unused credit can roll over to future years.

• Must own the system (cash purchase or loan), not lease. energysage.com

2. Arizona Residential Solar Energy Tax Credit

• State income tax credit equal to 25% of installation costs, capped at $1,000 per taxpayer/year resilient.az.gov+6energysage.com+6solarreviews.com+6.

• Can be claimed on primary or secondary residence.

• Unused credit can roll forward for up to 5 years srpnet.com+5energysage.com+5resilient.az.gov+5.

3. Arizona Solar Equipment Sales Tax Exemption

• Exempts you from the 5.6% state sales tax on solar equipment and installation srpnet.com+15todayshomeowner.com+15ecowatch.com+15.

• Applied automatically by registered installers.

4. Energy Equipment Property Tax Exemption

• 100% exemption on the added home value from solar systems—so your property tax won’t increase due to solar ecowatch.com+2todayshomeowner.com+2parkerandsons.com+2.

• You may need to submit cost documentation to your county assessor within six months of system installation srpnet.com+15todayshomeowner.com+15solartechonline.com+15.

5. Net Billing (Replacement for Net Metering)

• Arizona no longer offers full net metering; instead, utilities use net billing:

  • Excess solar power earns credit at the avoided-cost rate (lower than retail) solartechonline.com+7energysage.com+7en.wikipedia.org+7.

  • Credits carry over indefinitely; utilities pay out if bank balance exceeds ~$10–25 energysage.com.

  • Rates vary: APS ≈ $0.0686/kWh, Tucson Electric ≈ $0.057/kWh energysage.com+1en.wikipedia.org+1.

6. Utility-Specific Rebates & Programs

SRP (Salt River Project)

• No direct installation rebates, but offers:

  • SRP Solar Choice™: subscribe to offset 50–100% of usage via utility-scale solar (adds ~$0.005/kWh) the-sun.com+3azsp.com+3kiplinger.com+3srpnet.com+1srpnet.com+1.

  • Demand management rebate: $250 for installing approved systems .

APS, TEP, Mohave Electric, etc.

• APS provides time-of-use incentives (bill rate advantages).

• TEP may offer export credits similar to APS.

• Mohave Electric offers ~$0.05/watt up to $2,500 (max 50 kW system) kiplinger.com+15solarreviews.com+15srpnet.com+15.

• Check with your utility for specifics and current PBIs.

💵 Example Combined Savings

For a typical $30,000 system in Arizona:

• Federal ITC: 30% → $9,000

• State credit: 25% up to $1,000 → $1,000

• Sales tax (5.6%): ~$1,680 off

• Property tax exemption: avoids ~ $2,500 in taxes over system life kiplinger.com+9todayshomeowner.com+9parkerandsons.com+9solarreviews.com+2solartechonline.com+2energysage.com+2

That’s an immediate reduction of nearly $11,680, plus long-term property tax savings and ongoing utility bill relief.

📋 How to Claim These Incentives

• Federal ITC – File IRS Form 5695 with your federal tax return resilient.az.gov+1solartechonline.com+1.

• State credit – Use Arizona Form 301 with your state return solartechonline.com.

• Sales tax & property tax exemptions – Generally auto-applied, but save installers’ receipts. For property tax, file with county assessor within 6 months .

• Utility rebates – Check eligibility and apply through your utility’s website (e.g., APS, SRP, TEP).

✅ Summary Table

 

Do Solar Panels Save You Money in Arizona?

Solar panels can absolutely save you money in Arizona, often more than in most other states—thanks to the state’s intense sunshine, relatively high electricity costs, and multiple financial incentives.

Here’s a breakdown of how and why solar panels save money in Arizona:

☀️ 1. Arizona Gets Excellent Sunlight

• Arizona is one of the sunniest states in the U.S., with many areas (like Phoenix and Tucson) getting 300+ sunny days per year.

• More sun = more energy produced = bigger savings on your electric bill.

💵 2. High Electricity Rates

• Arizona electricity rates (averaging 13–16¢/kWh for residential) make solar more valuable.

• Households with AC-heavy usage (especially in summer) see high peak bills that solar can reduce dramatically.

📉 3. Big Upfront Savings From Incentives

• Federal tax credit (30%) – worth ~$9,000 on a $30K system.

• Arizona state tax credit – up to $1,000.

• Sales tax exemption – saves 5.6% upfront.

• Property tax exemption – no increase in home value assessments due to solar.

• Utility rebates – e.g., SRP, Mohave Electric, some APS time-of-use incentives.

Combined, these can cut the effective cost of a solar system by 30–40% or more.

📆 4. Short Payback Period

• Most Arizona solar systems pay for themselves in 6–9 years depending on:

  • Utility rates

  • System size

  • Available incentives

• After that, electricity is effectively free for 15–20+ years (typical panel lifespan is 25–30 years).

🔁 5. Net Billing Still Provides Value

• Arizona no longer offers full net metering, but net billing allows you to sell excess energy back to the grid.

  • Rates are lower (e.g., ~$0.05–$0.07/kWh), but still offset your bill.

  • Smart home energy management (battery storage, shifting use to sunny hours) boosts ROI.

🏠 6. Increases Home Value

• Homes with solar panels in Arizona tend to sell faster and for more.

• Zillow and NREL studies show home values can increase 4–7%.

🔋 BONUS: Battery Storage Option

• Optional battery systems (like Tesla Powerwall) can increase savings and protect you from blackouts, especially useful during monsoon season or utility peak pricing events.

📊 Real-World Example:

A typical Arizona homeowner paying $180/month could see:

• $90–$140/month average savings (after financing or upfront payback).

• Over 20 years, that could total $25,000–$40,000 in net savings.

✅ Conclusion

Yes—solar panels are a smart financial investment in Arizona for most homeowners, especially if:

• You plan to stay in the home 5+ years.

• You have a south- or west-facing roof with few obstructions.

• You take advantage of the available rebates and tax credits.

How Does Solar Panel Net Billing Work in Arizona?

In Arizona, net billing (not traditional net metering) is how most utility companies now handle excess electricity from solar panels. Here’s how it works in clear steps:

🔄 What Is Net Billing?

Net billing allows you to:

• Use solar power directly in your home as it’s produced (daytime).

• Send extra electricity back to the grid.

• Get a credit for that extra electricity—but at a lower rate than what you pay to buy electricity from the utility.

⚡ How Net Billing Works (Step-by-Step):

💲 Export Credit Rates (2025 Snapshot)

⚠️ Export rates are reviewed annually and can drop over time.

🧾 Example Scenario

Let’s say:

• You produce 1,000 kWh from your solar system in a month.

• You use 800 kWh yourself.

• You export 200 kWh to the grid.

If you’re on APS:

• You save by avoiding buying 800 kWh at ~13¢ → $104 saved

• You earn a credit for 200 kWh at 6.86¢ → $13.72 credit

Total savings that month: $117.72

🕰️ Time-of-Use (TOU) + Net Billing

Some utilities like SRP and APS offer TOU plans where:

• You pay more during peak hours (afternoon/evening).

• You pay less during off-peak (late night, early morning).

Solar performs best during midday, which isn’t always peak time—so smart home energy habits or battery storage can help optimize your use.

🔋 Bonus: Add a Battery (Optional but Strategic)

With net billing’s lower export rates, storing your extra solar energy in a home battery (like Tesla Powerwall or Enphase) allows you to:

• Use that stored power during peak hours instead of buying expensive electricity.

• Increase savings by avoiding peak utility rates.

✅ Key Differences from Net Metering

📌 Summary: Net Billing in AZ

• You use solar power when available.

• You get partial credit for surplus solar sent to the grid.

• You still pay for grid power when solar isn’t available.

• Batteries or smart usage patterns can increase your return.

 

Elite Solar Lighting & Fans Is A Skylight Installer Located In Arizona

Elite Solar Lighting & Fans offers residential and commercial solar tube installation services throughout the entire united states, including Arizona, California, New Mexico, and more.[/vc_column_text][/vc_column][/vc_row]