PHX Solar Incentives
Discover reasons why you should go solar
It’s a fact – solar energy is cheaper than energy developed from fossil fuels, and it’s clean and renewable. Yet many people turn their heads at the idea of powering their homes through solar panel installations because they are concerned about the start-up costs and ongoing maintenance fees.
However, this couldn’t be further from the least of your worries. Rooftop solar installations are actually recommended by the federal government because of their potential to make global impacts for generations to come. Because of this, you’ll find that there are both federal and state incentives that help you to offset any costs associated with switching your home to solar energy.
If you live in Phoenix, Arizona, there is no better time than the present to invest in solar power. Rebates, tax credits, and other incentives abound all over the country, but Arizona is in a league of its own. With all of the sun in the state and the mountains to absorb and build up renewable energy, Arizona’s legislatures knew early on that a renewable energy policy was the smart way to make the shift in utility spending.
Statistically, Arizona has the highest solar capacity per capita in the entire country and has almost single-handedly tripled solar use in the United States alone over the last few years.
In fact, customers of utility companies in the Phoenix and Tuscon areas have been given extra incentive to switch to solar energy. APS and TEP, the electric companies in those areas, are smart enough to see where they can help the new wave of solar power and still cash in on it themselves by offering rebates and a locked-in current rate.
Homeowners that want to avoid the utility company route have other financial reasons to go solar: There’s a 25% state tax credit, a 30% federal solar tax credit to offset installation costs, and net metering. None of this make sense to you? Read on for more details!
Solar rebates are exactly what they sound like – a rebate that you are given once you purchase your solar panel. This amounts to money back to help you offset your expense.
If you pay for your system yourself, you will get this money directly. Some solar installation companies will deduct this off the installed price, deal with the paperwork, and receive the rebate instead of you, but then you don’t have that extra out of-pocket-expense at the beginning.
There are multiple rebate offers going on at any given time. The problem is that these rebates often have an expiration date or a first-come, first-served until they run out of rebate money policy. To ensure that you are getting the best rebates that you can qualify for, talk to the experts at Phoenix Solar Pro. We keep up-to-date on everything available to homeowners in Phoenix as well as federally.
If you live in Arizona and install solar panels in your home, you automatically qualify for a state tax credit of 25% of your system’s total cost, up to $1000. This credit is applied towards your state income taxes automatically.
State tax credits are not free money given to you, like a rebate would be. They are credits, which means that they take money, dollar for dollar, off of what you may otherwise have had to pay in taxes. This turns into a good incentive for many people to install solar panels.
In addition to the state tax credits, you also automatically qualify for a 30% federal solar tax credit. This credit is a little different in that there is no cap, unlike the $1000 state tax credit cap. You simply subtract your rebate from your expense, and you get the 30% tax credit towards your federal income taxes.
A little-known caveat for the federal tax credit is that just because you qualify for it this year does not mean you have to use it this year. It can actually be deferred for up to 20 years before you use it, so if your taxes are a little too high a few years down the road, you can pull out your 30% solar panel tax credit and help your pocket.
The federal solar tax credit also applies to commercial systems. Since there is no cap on the 30% tax credit, many businesses are turning to solar power when it is time to replace or renovate their current roofing structures, when they are constructing new buildings, or when they want to make an upgrade that will give them an excellent return on their investment and save them money in the long run.
Your property value with the addition of solar panels is going to increase, but instead of being a positive draw for some people, they worry about the addition of more property taxes. But using solar panels actually brings you the opportunity to apply for solar property tax exemptions.
Solar power is known to reduce or eliminate your monthly utility bills, and that is a big reason people want to make the transition to solar panels to power their energy. An additional ten or twenty thousand dollars added to their property value, though, means that the savings are simply reallocated to the government through property taxes.
Many states, such as Arizona, understand this and have completely exempted homeowners from the added taxes that would have otherwise come with the solar panel installation, leaving the extra savings where they belong – in your pocket.
Net metering rates come into play when the power provided from the customer is greater than what the customer used. The utility company then pays you, as the generating power source, the going retail rate that it charged the consumer who received the energy.
In general terms, this means that if you provide enough energy to power another home, you can actually make money off of your solar power.
This is especially important in Phoenix, where the sun shines brightly throughout the majority of the year. This great natural phenomenon means that those solar homeowners in Phoenix can produce 180% more electricity than in other, not quite as sunny, states.
Net metering is not automatically approved, though. You have to be eligible for it through certain criteria. Some net metering networks require you to complete an application process, after which you will receive a new meter that can read the excess power and thus replacing your old electric meter. Watch the fine print – most net metering companies will add your credits towards your monthly power bills, and only roll them over for that calendar year.
Other energy sources are eligible for net metering, too. You may find yourself connected to renewable energy systems that include wind energy, biomass, hydroelectric power, ocean energy, hydrogen, waste heat, and geothermal energy in addition to your solar power. Of course, this depends on where you are located.
Every installation will be different because multiple different factors come into play when the cost is determined. Here in Phoenix, you can talk to the experts at Phoenix Solar Pro to get an estimate, but in general these factors will be used to give you a price tag:
· The brand of solar panels that you choose to use,
· The solar company that you have performing the installation,
· The number of solar panels that you want to install (this will also depend on how much energy you want to generate and whether you want to offset some or all of your utility bill),
· And how difficult or easy it will be to complete the installation with your home in its current state of repair.
In Arizona, the average cost of a solar panel system is $3.73 per watt. The most standard system is considered to be the fkW residential solar system. Your installation company will help you to determine which system fits your needs best, as well as the tax rebates that are available to you in your area.
The benefits well outweigh the costs, even without the impressive tax credits, rebates, and net metering offerings out there.
Whether you are still on the fence and have a few questions or concerns about making the transition over to solar power, or you are ready to start the move today, we can help you at Phoenix Solar Pro. Call us today and we will schedule a time to sit down with you, answer your questions, and work with you to find a system that is right for your energy needs.
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