federal tax credit – SolarTech https://solartechonline.com Providing turnkey residential & commercial solar solutions Sat, 19 Apr 2025 17:59:56 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.3 https://solartechonline.com/wp-content/uploads/2024/07/cropped-Favicon-SolarTech-32x32.png federal tax credit – SolarTech https://solartechonline.com 32 32 Arizona Solar Panel Incentives for 2025 & Beyond https://solartechonline.com/blog/arizona-solar-panel-incentives/ Mon, 18 Nov 2024 23:19:20 +0000 https://solartechonline.com/?p=1818 Arizona clocks in at No. 5 in national solar capacity, making properties throughout “The Grand Canyon State” a perfect candidate for solar power. It’s something that nearly 1.4 million Arizona households already know, as the state generates enough solar power (11.15 percent of its total electricity output) to power that volume of properties.

And Arizona isn’t done. Over the next five years, it’s estimated that solar power will grow by 43 percent in Arizona. You too can take advantage of this growing renewable energy source by working with SolarTech on your next project. We specialize in more than just installing industry-leading solar systems, but making sure you’re capturing all the incentives you qualify for too. Read on to learn more or contact us today to schedule a consultation.

Current State of Solar in Arizona

Arizona has plenty of sunshine for its residents, one of the factors that makes the state so appealing. Additionally, its 300 days of sun each year makes it a prime candidate for solar installations, something that 1.4 million Arizona households are already realizing. What’s more is that solar installations in Arizona are more affordable than ever thanks to various incentives that property owners may be eligible for. This, combined with a projected surge in solar installations over the next five years, has Arizona poised to become even more of a player in renewable energy.

What are the Top Arizona Solar Panel Incentives?

Arizona residents may qualify for several solar panel installation incentives, including:

    • Federal Solar Investment Tax Credit (ITC)
    • Arizona Residential Solar Energy Tax Credit
    • Solar Equipment Sales Tax Exemption
    • Energy Equipment Property Tax Exemption
    • Net Billing Program
    • Utility-specific incentives

Federal Solar Investment Tax Credit (ITC)

The Federal Solar Investment Tax Credit, sometimes known as just the Federal Investment Tax Credit, or ITC, allows property owners to claim up to 30 percent of the cost of solar energy system installation against their federal taxes. For example, if your system costs $10,000 to install, you can claim up to $3,000 of it on your federal income tax filing. Currently, the 30 percent federal tax credit applies for installations made between 2022 and 2032, before it’s reduced to 26 and 22 percent in 2033 and 2034, respectively. It’s expected to expire in 2035 unless Congress renews it.

If you’re an Arizona resident who files a federal income tax, you qualify for this solar benefit. At SolarTech, we’ll help you maximize it.

Arizona Solar Incentives

Residential Arizona Solar Tax Credit

Arizona also has a state solar tax credit – 25 percent of your solar panel system costs up to $1,000 total toward your state income tax. When you combine this state tax credit with the 30 percent federal tax credit, the incentive to transition to solar on your property becomes even more appealing. In addition to the 30 percent tax credit from the federal government, there’s the potential to receive up to an additional $1,000 credit from the Arizona state government. The credit can be claimed for up to 5 tax years.

Solar Equipment Sales Tax Exemption

In Arizona, there’s a sales tax exemption for the retail sale of solar energy devices and installation of such devices and equipment by qualified contractors. That means you won’t pay the standard 5.6 percent sales tax on solar equipment or installation.

Energy Equipment Property Tax Exemption

Rooftop Solar panels, solar pool heaters and other solar-powered appliances all qualify for Arizona’s Energy Equipment Property Tax Exemption, which provides a 100 percent tax credit for any increase in property resulting from the installation of this – and other – energy-efficient equipment. It’s estimated that solar panels can increase property value by 3 to 6.8 percent on average, meaning you’ll be able to benefit from this increase in value.

Net Billing in Arizona

Arizona’s net billing system compensates solar owners for excess solar energy they send to the grid, credits that are often used to offset any future energy costs. Typical credit rates range from $7.81 to $10.45 per kWh that is sent back to the grid. It represents additional potential for solar savings.

Utility-Specific Solar Incentives

Keep your eye out for renewable energy programs and Arizona solar rebates, as utility companies also offer solar incentives. While Salt River Project no longer offers incentives for rooftop installations, it does offer a $250 rebate for the purchase and installation of a demand management system (DMS).

Arizona Public Service also offers a $30 rebate on smart thermostat purchase and installation.

SolarTech works to stay up to date on all utility offers to ensure you maximize your savings potential.

How Arizona Residences Can Maximize Incentives

Looking to get the most return on investment out of your solar installation? SolarTech is here to help in the following ways:

      • We stay up to date on all incentive opportunities and will assist you with various applications.
      • We optimize system design to ensure that it meets the requirements for maximum incentives.
      • We offer ongoing support for claiming benefits, largely thanks to our expertise in navigating the complex incentive landscape.

FAQs

How do I qualify for the Arizona solar tax credit?

The credit is good for 25 percent of the total system cost, but cannot exceed a total of $1,000. It can be claimed for up to five tax years. You’ll need to complete Arizona Form 301 and include it with your state tax filing.

Can I combine federal and state solar incentives?

Yes! To maximize your incentive potential, combining your federal solar tax credit and state solar sales tax exemption is something that property owners should do following a solar installation.

How does net metering work in Arizona?

Net metering pays Arizona solar power owners to distribute excess energy generated back to the grid, usually to offset future energy costs. Typical credit rates range from $7.81 to $10.45 per kWh.

Are there any income limits for solar incentives in Arizona?

No, there is no income limit for solar incentives in Arizona.

How long do solar panels typically last in Arizona’s climate?

With proper maintenance, solar panel systems can last anywhere from 25 to 30 years under normal operating conditions in Arizona.

Hurry Before it’s Too Late

The solar incentives offered now aren’t likely to be in place forever. In fact, the Federal Solar Investment Tax Credit – which is currently 30 percent of the cost of solar system installation – will reduce to 26 percent for installations starting in 2033 and then 24 percent for installations in 2034. It expires in 2035 unless Congress renews it.

Additionally, there’s a potential for the state government to revisit the state credit. Make sure you’re acting soon to ensure you maximize the benefits of going solar.

If you’re interested in going solar, contact SolarTech today for a personalized assessment of your property. When you schedule a free consultation, we’ll help you understand how much you can potentially save from going solar. You can also use an online savings calculator to ballpark your potential savings.

Steps to Claim Solar Incentives in Arizona

SolarTech will help guide you through the process of claiming each available solar incentive that you qualify for.

If you’re filing for the Federal Solar Investment Tax Credit, you’ll need to fill out IRS Form 5695 with your taxes and include it with your federal taxes. For the state solar energy credit, you’ll need to complete Arizona Form 301 and include it with your state tax filing.

To qualify for the Arizona sales tax exemption, you must ensure that your panels are installed by an approved contractor. It’s the responsibility of the contractor to ensure property owners don’t pay sales tax for this.

To qualify for the property tax exemption, property owners must provide their assessor with documentation on the purchase and installation. This must be submitted within 6 months before the notice of full cash value is issued for the initial valuation year.

Additional Resources for Arizona Solar Incentives

]]> Power Your Future with Solar Phoenix Energy https://solartechonline.com/blog/solar-phoenix-energy/ Fri, 15 Nov 2024 19:09:02 +0000 https://solartechonline.com/?p=1805

In the desert sun of Phoenix, AZ where the sun shines almost every day of the year the potential for solar is huge. SolarTech is the pioneer in solar energy solutions bringing the latest technology and sustainable practices to the forefront. For homeowners, businesses and environmentalists in Phoenix, solar power isn’t just possible it’s an opportunity to make a big impact.

Solar in Phoenix, AZ

Phoenix with its hot summers and plenty of sunshine is the perfect place to harness solar energy. The city has high solar potential so it’s a great candidate for solar power systems. Choosing the right company for your solar installation is key to get maximum efficiency and reliability out of your solar power system. By using this renewable resource both residential and commercial properties can save big on their electricity bills, reduce their carbon footprint and contribute to environmental sustainability.

Going solar in phoenix can save you a lot on your electricity bills especially during the peak summer months when your air conditioners are running non-stop. Plus the tax incentives and rebates make going solar even more attractive, gives you financial relief and faster ROI.

Why SolarTech in Solar: Phoenix, AZ

SolarTech Opening of Phoenix Ribbon Cutting Ceremony

SolarTech has been in the solar business for over 20 years. Our focus on quality, innovation and customer satisfaction makes us one of the top solar companies in a crowded field. We offer top of the line solar panels designed to produce maximum energy even in the toughest weather conditions. Our certified technicians ensure smooth installation customized to each client’s needs.

Our results speak for themselves; after over 13,000 installations in Arizona, California, Nevada and Colorado we have a reputation for excellence. With industry certifications and numerous awards under our belt SolarTech is changing lives by providing reliable and affordable clean energy.

Maxeon and REC Product Offerings

When it comes to solar panels that can withstand the Arizona desert conditions Maxeon and REC are top of the line. Both companies are known for their high quality solar panels that can perform well even in extreme weather.

Maxeon Solar Panels

Maxeon, known for its innovation and advanced technology, offers solar panels that are built to last. With a focus on durability and efficiency, Maxeon panels feature a unique cell design that minimizes power loss and enhances longevity. These panels are engineered to resist corrosion and withstand high temperatures, making them ideal for the scorching Arizona sun. The robust construction of Maxeon panels ensures they can endure the intense UV exposure and temperature fluctuations typical of the desert climate, providing reliable solar power for decades.

 

REC Solar Panels

REC is another well known company in the solar industry offers panels that combine high efficiency with durability. REC panels are made with advanced materials that enhances their resistance to environmental stressors like high heat and humidity. The panels have a reinforced frame and a protective layer that shields the photovoltaic cells from damage so they can produce energy consistently even in the toughest conditions. REC’s focus on quality and performance makes their solar panels a smart choice for Phoenix homeowners to get the most out of their solar investment.

 

Long Lasting Performance in Arizona’s Climate

Both Maxeon and REC panels are designed to handle the Arizona desert conditions. Their engineering and materials are superior so they can maintain their performance and efficiency over time despite the extreme weather. With these panels Phoenix homeowners and businesses can have peace of mind knowing their solar energy systems will produce clean renewable energy for years to come.

Choosing Maxeon or REC solar panels means investing in a future proof solution that will not only save you on electricity bills but also contribute to a sustainable and eco friendly lifestyle. With their proven track record and reliability these panels are a great choice for anyone who wants to go solar in Phoenix, AZ.

 

Understanding Solar Energy Systems

A solar energy system also known as a solar panel system is designed to capture the sun’s energy and convert it into usable electricity. These systems consist of several components: solar panels, inverter, mounting system and monitoring system. Solar panels are made up of photovoltaic (PV) cells that capture the sunlight and convert it into direct current (DC) electricity. The inverter converts this DC electricity into alternating current (AC) electricity which powers homes and businesses. The mounting system secures the solar panels to your roof or ground so they are in the right position to get maximum sunlight. The monitoring system tracks the performance and energy production of your solar energy system so you can see the benefits in real time.

 

SolarTech’s Comprehensive Solar System Offerings

 

SolarTech’s Solar System Offerings

At SolarTech we offer a full range of solar energy solutions for Phoenix residents and businesses. Our certified solar installers will install your system seamlessly and customized to your specific needs. We offer:

 

 

Residential Solar Solutions

Maxeon Solar Panels

Our residential solar panels turn your home into a power plant. Our team of experienced solar installers will install your residential solar panels efficiently and effectively. By generating your own electricity you will reduce your dependence on traditional energy sources and save big on your bills and the planet.

 

 

 

 

Commercial Solar Solutions

Hyundai Solar Install

 

For businesses we offer solutions that increase energy efficiency, reduce operational costs and open up new revenue streams. Knowing the cost of solar panels is key for businesses to make informed decisions and get the most out of their investment. Our commercial solar installations will not only enhance your company’s green image but also give you a competitive edge in today’s eco conscious market.

 

 

 

Energy Storage

Never worry about power outages again with our advanced solar battery storage systems. These systems store excess energy generated during the day for use when you need it most so you have uninterrupted power and extra peace of mind.

 

 

Maintenance Services

We believe in excellence beyond installation. Our maintenance services will keep your solar system running at its best, extend its life and get you the most out of your investment.

 

Solar Panels Installation Process

The journey to solar energy starts with a site assessment to determine the best location for your solar panel system. This involves evaluating the amount of sunlight your property gets and any potential shading issues. Our team uses advanced tools and technology to conduct this assessment so it’s precise and accurate. Once the location is determined our team will design a custom solar panel system to meet your energy needs. We take into account your current energy usage, future energy goals and your property’s architecture to create a system that’s efficient and productive.

The actual installation process is quick, usually takes 1-3 days depending on the size of the system. Our certified solar installers are trained to handle every aspect of the installation with precision. During this time the solar panels are securely attached to your roof or ground and the inverter and monitoring system are installed. We make sure all components are integrated seamlessly so your property looks the same as before.

The final step is to connect the system to the grid and test everything to make sure it’s working perfectly. Our team will do a thorough quality check and testing to ensure optimal performance and safety. With SolarTech you can be assured that your solar panel installation will be smooth and hassle free. We will also do a full walkthrough of your new solar system and show you how to monitor your energy production and savings. Our customer service doesn’t stop at installation we offer ongoing support and maintenance to keep your solar energy system running at its best.

 

 

Solar Energy Costs and Incentives

The cost of solar energy systems have come down over the years making it more affordable for homeowners and businesses to install solar panels. The cost will vary depending on the size of the system, type of equipment used and the solar company you choose. However financial incentives like the federal solar tax credit and local solar incentives can reduce solar panel cost, as well as solar installation and most other expenses related to installing solar panels systems. The federal solar tax credit allows you to claim up to 30% of the total cost of your solar energy system as a tax credit which is a big savings. Many states and local governments also offer rebates and incentives for solar energy systems to further reduce the cost. With these incentives going solar is not only good for the environment but also makes sense financially.

 

 

Environmental Benefits of Solar Energy

Solar is a clean and renewable source of energy that produces zero emissions and pollution. By installing solar panels you can reduce your carbon footprint and contribute to a healthier environment. Solar energy systems reduce our dependence on fossil fuels which are major contributors to climate change. Solar panels require minimal maintenance and can last up to 30 years or more so it’s a sustainable and long term solution for your energy needs. Going solar means taking a proactive step towards a greener future so we can leave a better planet for our children.

 

 

Financing Options for Solar Energy

There are several financing options to make solar energy systems more affordable for homeowners and businesses. One option is a cash purchase where you pay the full cost of the solar energy system upfront. Many solar companies also offer financing options with $0 down and low interest rates so you can spread the cost over time. Another option is to use a home equity loan to finance the solar energy system and leverage the value of your property. A Power Purchase Agreement (PPA) allows you to buy the energy produced by the solar energy system at a fixed rate instead of buying the system outright. These financing options makes solar energy more accessible to a wider range of people so more individuals and businesses can benefit from clean and renewable energy.

 

 

Real-Life Success Stories

Our history of successful projects in Phoenix says it all. Take Ryan G. for example who had his solar panels installed over 10 years ago.

“SolarTech installed my solar panels over 10 years ago now, and they are still performing as strong as ever! I can’t recommend SolarTech highly enough as they have helped me with any issues or questions I’ve had with my solar over the years,” he says.

These are just a few examples of our dedication to customer satisfaction a testament to our service and products.

 

 

Solar Power in Phoenix, AZ

The solar landscape is changing fast with technological advancements and favorable regulations. SolarTech is at the forefront of this changing landscape, innovating and adapting to the growing demand for clean energy.

With solar panel efficiency, battery storage and AI powered energy management systems getting better and better the future looks good. Projections show a big increase in solar adoption driven by environmental concerns and it makes sense financially.

 

Battery Backup in Future Proofing Solar

Tesla Powerwall 3 Installation by SolarTech

As we look to the future of solar in Phoenix, AZ battery backup will play a bigger and bigger role. With the fast pace of solar technology and energy storage advancements battery backups will be key to increasing the efficiency and reliability of solar energy systems. These systems will not only protect against power outages but also optimize energy usage so homeowners and businesses can store excess solar energy for use during peak hours or when the sun is not shining.

 

Battery Backup: The Full Package

Battery backup systems like the Tesla Powerwall 3 and others are a complete solution for solar energy systems. These advanced storage solutions work seamlessly with solar and AI to manage energy consumption. By storing excess solar energy battery backups can offset peak hours, reduce grid dependence and lower your electricity bills.

With AI technology these systems can learn your energy usage patterns and optimize the storage and release of energy. This smart management not only increases the efficiency of your solar system but also long term savings by mitigating the effects of changing electricity rates.

 

Long Term Savings and Sustainability

Adding battery backup to your solar energy system can mean big financial returns over time. Using stored energy during peak hours means you can avoid high electricity costs and get even more bang for your solar buck. Plus modern battery backups are designed to meet your energy needs even during outages.

At SolarTech we offer the latest battery backup solutions to go with our solar installations. By embracing these technologies you can future proof your energy system and be sustainable in the ever changing world of solar.

 

 

Get Started with Your Solar Panel Installation

Ready to start your journey to a sustainable future? Contact SolarTech for a free consultation or quote. We will guide you through the process from initial enquiry to installation so you can go solar smoothly.

 

Summary

In summary solar is a solution to both economic and environmental problems in Phoenix, AZ. With SolarTech you can harness the sun, reduce your carbon footprint and save big.

Go solar today—because solar is the future and the future is here. Contact us for a free consultation to learn more. SolarTech

]]> Financial Benefits of Solar: Tax Incentives for Businesses https://solartechonline.com/blog/tax-incentives-commercial-properties/ Thu, 23 Feb 2023 07:10:50 +0000 https://solartechonline.com/?p=1269 Solar energy has become an increasingly popular choice for both Owners/Operators and property owners with Tenants. Businesses can lower their monthly operating costs and take control of the rising utility rates. On the other hand, Landlords with Tenants can unlock a new source of recurring cash flow by producing energy on their property.

One of the biggest drivers of commercial solar adoption has been the availability of tax incentives for commercial properties. These incentives, which are offered at both the federal and state levels, can help offset the upfront costs of installing solar panels and make the investment more attractive to businesses.

Federal Commercial Solar Tax Credit

At the federal level, the primary tax incentive for commercial solar is the Investment Tax Credit (ITC). This credit allows businesses to deduct 30% of the total cost of a solar system from their federal taxes. The ITC is in place for the next 10 years through the Inflation Reduction Act passed in 2022.

The ITC can be claimed by any business that installs solar panels on a property it owns or leases, and it can be combined with other incentives to further reduce costs. Non-profits and businesses with no use for tax incentives can sell the Tax Credit to a 3rd party conveniently. Additionally, there is no cap on the amount of credit a business can claim.

You can learn more about how to claim the ITC and see if you are eligible here.

Federal and State MACRS

Besides the federal ITC, a solar investment can be tax depreciated using the Modified Accelerated Cost Recovery System (MACRS).

  • 80% can be depreciated in year 1 of the system being installed.
  • About 23% of the gross investment can be depreciated over 5 years

Under the State (CA) MACRS, businesses may recover investments in solar over the first 5 years once a solar installation occurs.

Overall, a gross investment in a commercial solar system can be deducted by 60-70% in tax incentives. This reduces the payback period immensely and boosts ROI for the lifetime of a system.

The availability of tax incentives has been a major factor in the growth of commercial solar. As businesses look for ways to save money on energy costs or generate a new source of income for property owners, solar offers a compelling solution – and the tax incentives make it even more appealing. If you’re considering a commercial solar installation, be sure to explore all of the available tax incentives to maximize your savings.

Estimate Your MultiFamily Solar Revenue Potential

Make the best of these limited-time incentives! Calculate now much you can be generating by adopting solar for your properties.

Estimate now

Resources:

  1. Energy.gov – Federal Solar Tax Credit Resources
  2. What is the Modified Accelerated Cost Recovery System? (MACRS)
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