If you own a home in this sunny desert city, you’re in an ideal place to harness renewable resources. With so much natural light, it’s perfect for sustainable solutions. You can significantly cut your utility costs, and there are plenty of incentives and discounts available to make the transition smoother. Here are the top five ways to maximize savings on your new system.
Federal Solar Investment Tax Credit (ITC)
First up is the Federal Investment Tax Credit (ITC), one of the most impactful incentives currently available. This program lets homeowners deduct 30% of their installation costs from their federal tax bill.
How It Works:
- Eligibility: Open to anyone who adds a qualifying system to their primary or secondary home.
- Benefit: If your setup costs around $20,000, you could see a $6,000 reduction in what you owe in federal taxes.
- Duration: This credit is set to decrease over time, so now’s a smart moment to take advantage before it starts to scale back.
It’s a powerful way to make your upgrade more affordable, easing the financial load right from the start.
Arizona Solar Property Tax Exemption
Next up is the local property tax exemption for renewable upgrades. While these installations can raise your home’s value, this benefit ensures you won’t be taxed on that additional worth.
How It Works:
- Qualification: Available to residents who add renewable upgrades to their houses.
- Advantage: The added value from your renewable upgrades won’t be included in your tax assessment. Even if your home’s worth rises because of the installation, your taxes won’t go up.
- Duration: This benefit lasts indefinitely as long as the renewable installation stays on your home.
Key Takeaway: By shielding you from higher taxes, this benefit turns your home’s added value into true savings—with no hidden costs.
APS Solar Incentives Program
One of the major utility providers in the region offers a rebate program for residents who install renewable setups connected to their network. They provide financial incentives to encourage participation.
How It Works:
- To qualify, participants must be customers of the utility and install an approved renewable setup.
- Participants can receive a per-watt incentive for eligible installations, helping lower upfront expenses.
- 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.
This incentive initiative helps make renewable installations more accessible by offering additional financial benefits on top of existing savings.
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:
- To qualify, participants must be utility customers with approved grid-connected renewable installations.
- 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.
This incentive initiative allows participants to recover a portion of their costs while contributing to cleaner energy growth in their community.
Local Utility Rebate Programs
Several providers in the area offer their own incentive programs for renewable installations, with varying benefits. It’s best to contact your local service company directly for up-to-date details on available offers.
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.
Taking advantage of these programs means supporting sustainability while putting money back in your pocket. Whether you’re ready to make the switch or just exploring options, these incentives can make a big difference in your plans. With abundant sunshine year-round, there’s never been a better time to harness its potential!
Reach out to us at Energy Source Hub for more details on these perks and how you can start saving today.
