If you’re a homeowner in Arizona, installing solar panels to power your home is a smart decision. The Grand Canyon State enjoys months of sunshine every year, making it easy and more affordable to harness this natural energy source.
While solar systems’ costs have fallen 40% over the last five years, many property owners still can’t afford the total upfront costs. Luckily, several solar financing options can help reduce this financial burden. A reliable AZ solar installer will help you identify available solar panel financing options and determine if you qualify for these.
Total Solutions is a leading solar installer in the state and allows to maximize the total benefits of the solar system. We consult with our clients to understand their needs and help them choose the best financing option for their solar panels purchase.
We also help you qualify for the best of these solar financing options. Take a look:
- Residential Arizona Solar Tax Credit
This is a financing program that reimburses you 25% of the cost of your solar panels, up to $1,000. It is a Personal Tax Credit applicable for residential properties only.
To qualify, the equipment must meet all applicable performance and safety standards. Your solar panels must carry a minimum 2-yr warranty on collectors, heat exchangers, and storage units. The system should also have a minimum 1-yr warranty for the installation to qualify.
To meet these stringent requirements, you need to work with an established solar installation company for the supply of quality equipment and to get a warranty on the equipment and installation.
- Equipment and Property Tax Exemptions
The Solar Equipment Sales Tax Exemption guarantees you don’t pay any sales tax on the purchase of your solar system including solar panels. You get 100% of the sales tax on eligible equipment.
More importantly, the Energy Equipment Property Tax Exemption means you won’t pay any additional property taxes on added value. To qualify, provide your county assessor with documentation showing the actual purchase and installation of your solar panels including costs, of the eligible equipment. Your solar installation company will help you prepare and present these documents early enough to qualify.
- Solar Investment Tax Credit (ITC)
This is a 26% tax credit for solar systems on residential properties (under Section 25D). When you purchase solar systems and install it on your home, you can apply the ITC credit to your personal income taxes. This is a dollar-for-dollar reduction on the amount of income tax you would otherwise pay the government.
- Solar Loans
Zero-down solar loans are popular in Arizona as more property owners seek to harness the benefits of solar power. These loans can be unsecured and secured solar loans. For secured loans, your home acts as collateral.
The loans allow you to own the solar panels and the entire system and start enjoying the cost-benefits immediately. You enjoy all tax incentives, and the system pays for itself within 7-10 years.
To qualify, you need first to determine your home’s energy needs and draw a solar system design. A licensed AZ solar installer will help you with this qualification process. These professionals will also advise you on the total costs of the project, licenses and any fees required.
If you want to install solar panels on your roof, talk to us today and let’s help you find the best financing option. Our team at Total Solutions will work with you to ensure you qualify for solar panels and start enjoying cheaper, cleaner and more reliable power in your home.