Congratulations! If you have stumbled upon this blog, that means going Solar has piqued your curiosity. At American Solar and Roofing, we believe in the power of choice and consumer education to ensure consumer protection. Today, we will be discussing the solar tax credits available to anyone who purchases Solar in the state of Arizona and how this benefits you!
*Disclaimer: Tax Credits are due to change over time, and although we are committed to keeping our blogs up to date with the latest industry information, we encourage you to call into our business if you have any questions. You can give us a call for more information at 480-994-1440*
What is a Solar Tax Credit?
A solar tax credit is a government incentive that allows you to reduce the cost of installing a solar power system. It is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. There are different types of solar tax credits, and we will be discussing the ones that are relevant in Arizona specifically.
Is there a difference between Federal and State Solar Tax Credits?
Yes, there is a difference between the two! Let’s discuss the federal tax credit for 2025 first.
Federal Tax Credit 2025
In the United States, the federal solar tax credit is currently 30%. This is the highest this tax credit has ever been! The Federal Tax credit allows you to claim up to 30% of the cost of your solar energy system as a credit to your federal tax bill. So, for example, if your system cost $10,000 you would receive a credit of $3000 to directly reduce your tax bill. This tax credit is available to anyone who purchases their system outright (with personal payment or a solar loan). The system also must be completed in that tax year.
Arizona Solar Tax Credit 2025
Arizona also offers its own Solar Tax Credit specifically for residents of the state. This state-level incentive allows you to claim 25% of your system’s total cost, up to a maximum of $1,000, against your tax burden in the year when you install the system.
Solar Equipment Sales Tax Exemption
Thanks to the Solar Equipment Sales Tax Exemption, you are free from the burden of any Arizona solar tax. Therefore, you aren’t required to pay any sales tax on the purchase of your solar system.
Energy Equipment Property Tax Exemption
This tax exemption means that you won’t have to pay any additional property taxes on the value you are adding to your home by investing in solar panel installation.
Additional information:
American Solar and Roofing has been providing quality solar installation for 24 yrs. We look forward to continue being a resource for all things solar, and if you are interested in going solar today, give our team a call at 480-994-1440
You can find more resources and information on Solar Tax Credits at the following links:
Database of State Incentives for Renewables & Efficiency: www.dsireusa.org
Energy.org Making Our Homes More Efficient: Clean Energy Tax Credits for Consumers | Department of Energy
Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics | Department of Energy
