Owning a home in this sunny desert city puts you in a prime spot to tap renewable resources. Abundant natural light makes sustainable options shine. You can cut utility costs by a wide margin, plus many incentives and discounts exist to ease a smooth switch. Below sit five smart ways to boost savings on a new system.
Federal Solar Investment Tax Credit (ITC)
First up comes Federal Investment Tax Credit (ITC), among most powerful incentives available right now. This program allows homeowners to deduct 30% of installation costs from a federal tax bill, making it a major money saver when switching to a new system.
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 makes upgrades far more affordable, easing financial load right from day one.
Arizona Solar Property Tax Exemption
Next comes a local property tax exemption for renewable upgrades. Installations can raise a home’s value, yet this perk makes sure added worth stays off a tax bill.
How It Works:
- Qualification: Available to residents who add renewable upgrades to their houses.
- Advantage: Added value from your renewable upgrades stays out of tax assessment. Even if your home worth rises due to installation, taxes stay unchanged.
- Duration: This benefit continues indefinitely as long as a renewable installation remains 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 major utility provider in this region runs a rebate program for residents who install renewable setups tied to its network. It offers financial incentives to encourage participation and lower upfront costs.
How It Works:
- To qualify, participants must already receive service from this utility and install an approved renewable setup.
- Participants can receive a per-watt incentive for eligible installations, helping lower upfront expenses.
- Duration: Funding plus incentives change year by year, so checking current offerings plus application deadlines from Arizona Public Service remains smart.
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 also provides incentives through renewable energy credits, often called SRECs. These credits let homeowners earn extra income based on how much clean 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: This SREC program runs on an ongoing basis, though SREC value can rise or fall with changing 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 this area run their own incentive programs for renewable installations, each with different benefits. Reaching out to a local service company directly gives you most current details on available offers and how they apply to your setup.
How It Works:
- Eligibility: Varies by utility provider.
- Benefit: Rebates may range from a few hundred up to several thousand dollars, based on system size plus type 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.
Using these programs means embracing sustainability while putting money back into your pocket. If you feel ready to make a switch or simply exploring options, incentives like these can create a real difference for future plans. With abundant sunshine year-round, now feels like an ideal moment to tap into that potential and move forward with confidence.
Reach out to us at Energy Source Hub for more details on these perks and how you can start saving today.
