If you’re a Phoenix homeowner thinking about going solar, you’re in a great spot. With all that sunshine, it’s a great spot for solar power. You can slash your energy bills, and there are tons of rebates and deals to make the switch even better. Here are the top five ways to save big on your solar setup.
Federal Solar Investment Tax Credit (ITC)
First on the list is the Federal Solar Investment Tax Credit (ITC), which is one of the most significant incentives available. This federal tax credit allows you to deduct 30% of the cost of installing solar panels from your federal taxes.
How It Works:
- Eligibility: Available to all homeowners who install solar panels on their primary or secondary residences.
- Benefit: For a solar system costing $20,000, you could potentially save $6,000 off your federal tax bill.
- Duration: As of now, the ITC is set to decrease in the coming years, so it’s a great time to capitalize on this benefit before it drops.
This incentive is a game-changer, making solar energy more affordable by directly reducing your out-of-pocket costs.
Arizona Solar Property Tax Exemption
Next up is the Arizona Solar Property Tax Exemption. While solar panels can increase the value of your home, this incentive ensures that you won’t be taxed on that increased value.
How It Works:
- Eligibility: Homeowners who install solar energy systems on their properties.
- Benefit: Your solar system’s value won’t be added to your property tax assessment. This means that even though your home’s value may go up due to the addition of solar panels, your property taxes won’t increase.
- Duration: This exemption is permanent as long as the solar system remains on the property.
By preventing an increase in property taxes, this exemption helps ensure that the value-added by your solar system translates into pure savings rather than additional tax burden.
APS Solar Incentives Program
Arizona Public Service (APS), one of the big utility companies in Phoenix, has a program that gives you cash back for putting in solar systems that hook up to the grid.
How It Works:
- Eligibility: APS customers who install a qualifying solar system.
- Benefit: The program offers a per-watt rebate for new solar installations. This rebate can significantly reduce the initial cost of your solar system.
- Duration: The program’s funding and incentives vary year to year, so it’s a good idea to check APS’s current offerings and application deadlines.
The APS Solar Incentives Program is a fantastic way to get a financial boost on top of other savings, making solar adoption even more affordable.
SRP Solar Renewable Energy Credits (SRECs)
Salt River Project (SRP) also offers incentives through Solar Renewable Energy Credits (SRECs). These credits are a way for homeowners to earn additional income based on the amount of solar energy their system produces.
How It Works:
- Eligibility: SRP customers with grid-tied solar systems.
- Benefit: For every 1,000 kWh of solar energy produced, you earn one SREC. These credits can be sold to utilities or other entities, providing you with extra revenue.
- Duration: The SREC program is ongoing, but the value of SRECs can fluctuate based on market conditions.
The SREC program not only helps you earn back some of your solar investment but also supports the broader adoption of renewable energy.
Local Utility Rebate Programs
In addition to APS and SRP, several local utility providers in Phoenix offer their own rebate programs for solar energy systems. These programs can vary, so it’s essential to check with your specific utility provider for the most current incentives.
How It Works:
- Eligibility: Varies by utility provider.
- Benefit: Rebates can range from a few hundred to several thousand dollars, depending on the size and type of solar system installed.
- Duration: Each utility’s program has its own rules and timelines, so make sure to verify current details with your provider.
Local utility rebate programs are a great way to supplement other incentives and reduce your upfront costs even further.
Wrapping It Up
Phoenix is a prime spot for solar power, and with these top five perks and rebates, making the switch has never been more rewarding. From the hefty Federal Solar Investment Tax Credit to local utility rebates, there are plenty of ways to cut down your solar costs and boost your savings.
By jumping on these opportunities, you’re not just investing in a greener future but also giving your wallet a nice boost. So, whether you’re already on the solar train or just starting to look into it, make sure to check out these benefits as you plan your solar journey. The sun’s shining bright on Phoenix, and it’s time to soak it all in!
Reach out to us at Energy Source Hub for more details on these perks and how you can start saving today.
