This case study describes how a solar electric system changed the life of one homeowner:

• Customer: Charles Woodford
• Location: Sun City Grand in Surprise, Arizona
• System Size: 5.59 kW
• Products: Kyocera Solar Panels, SMA America Grid-Tied Inverter
• Number of Solar Panels: 26 Roof Mounted Panels

Investing in a solar electric system makes sense from a monetary and environmental standpoint. It’s one of the best ways to save money on electricity costs each and every month. Not only do homeowners like Mr. Woodford save on utility bills, but their initial investment in a solar electric system is significantly reduced by incentives, rebates and tax credits.

Learn how you can do the same. Contact American Solar today for more information about Arizona solar electric.

With high energy prices, concern over global warming and a growing desire for energy independence, more and more home builders are integrating solar into their new homes because buyers are asking for it. Homeowners can take advantage of rolling the cost of a solar system into low-interest mortgages, as well as benefit from rebates, tax credits and tax deductions to realize a net cost savings within their first month of ownership.

Additional information includes:

• Shopping for a new solar home
• Solar vs standard energy features
• Advantages of solar in new home purchases
• How to select a solar vendor and home builder

Contact American Solar today for more information about Arizona solar.

Solar hot water, also called “solar thermal,” collects, stores and uses the sun’s heat to generate hot water. With the right system and configuration, you can capture the sun’s energy to produce enough hot water to serve your family’s needs.

Additional information includes:

• What solar hot water is
• How solar hot water works
• The benefits of solar hot water
• The economics of solar hot water

Contact American Solar today for more information about solar hot water.

The guide highlights important guidelines for choosing a solar energy company in Arizona.  A well-qualified solar contractor will identify the right system for you, apply all available incentives to your purchase, and stand behind your system for years to come.

Additional information includes:

• evaluating your situation and solar requirements
• identifying and contacting prospective solar contractors
• how to evaluate the qualifications of solar contractors and narrow your prospects

Contact American Solar today for more information about hiring the right solar energy company.

The guide highlights three different ways homeowners can purchase a solar energy system.  The investment options include direct purchase, low upfront lease and prepaid lease scenarios for the same sample system.  With each option, the guide identifies advantages and compares the 20-year savings to the initial out-of-pocket costs.    Additional information includes:

• The package description, including major components and services, along with pricing for a sample 7.92 kilowatt solar system.
• A comparison of the initial cash outlay amount and the initial system cost after tax credits.
• The 20-year cumulative cost and the 20-year cumulative savings for the direct purchase, low upfront lease and prepaid lease investment options.

Contact American Solar today for more information about solar energy systems.

Federal Tax Credits

Homeowners qualify for a 30% residential solar property tax credit on their Federal income tax.  This tax credit is in effect from December 31, 2008 through December 31, 2016 and does not impose a maximum credit amount.  The credit can be applied to both purchase and installation of a solar energy system.  However, the installation credit is not available if you install the devices yourself.

Since tax credits for solar power in Arizona are not subject to any maximum, they can be carried over to succeeding years.  However, you won’t be able to carry credits over past 2016, the last year the Federal energy efficiency tax credit is in effect

Arizona State Tax Credits

Arizona homeowners can claim a one-time tax credit of up to $1,000. No additional credits are allowed on the same residence for future solar devices. When you purchase solar power in Arizona, a reputable solar contractor will provide a certificate that indicates your devices comply with all requirements for the state tax credit.  The Arizona Registrar of Contractors manages licensing and standards for solar installers.

Property and Sales Tax Exemptions

Arizona allows sales tax exemptions for the sale or installation of solar energy devices.  Under Arizona statute, registered solar energy providers can exclude taxes for the entire amount of a solar contract.  Only solar energy retailers and contractors registered with the Arizona Department of Revenue can provide these tax exemptions. In addition, all Arizona towns and counties exempt sales taxes on solar energy devices.

Typical Savings from Available Incentives

The cost of a solar power in Arizona system can be substantially reduced by incentives and tax credits.  As an example, you might expect the following on a 5 kilowatt solar system:

Approximate Cost of System = $21,000

Utility Incentive (SRP in this case) = $6,750

Arizona State Tax Credit = $1,000

Federal Tax Credit = $6,300

In this example, the utility incentive and tax credits alone would save you $14,050 or almost 67% of the total system cost.  Plus, this amount does not factor in other savings from annual energy usage, financing incentives or provider promotions.

To make sure you get every dollar available to you, work with a reputable solar contracting company that’s been around for a long time and has installed thousands of systems.  A well-qualified solar provider will help you understand and receive every available incentive for which you are entitled.

For additional information and to speak with a solar expert, contact American Solar today!

American Solar is publishing a free downloadable residential solar resource guide entitled, “How Solar Works & Why It’s a Good Choice Today” that is a comprehensive guide to the benefits of residential solar power, your options when choosing a system and how to choose a system that is right for you.

American Solar aims to simplify the process of making your home run partially – or completely on solar power to reduce your energy costs and become more environmentally responsible through providing dependable information on solar electric systems.

Contact American Solar today for more information about residential solar systems.

When purchasing a solar power system, homeowners can expect long-term savings through reduced utility bills and the following financial advantages:

• Utility Incentives
• Federal Tax Credits
• Arizona State Tax Credits
• Arizona Property and Sales Tax Exemptions

Utility Incentives

All investor-owned Arizona utilities are regulated by the Arizona Corporation Commission.  The following utilities support the increasing use of solar power in Arizona:

• Arizona Public Service (APS).  APS offers a “Renewable Energy Incentive Program” that provides incentives for solar power in Arizona purchases for APS customers.  Residential customers connected to APS power lines can receive a one-time incentive of $1.00 for each installed DC watt of solar power.  In addition, customers can get credit for excess energy produced by their solar system.

• Tucson Electric Power (TEP).  To encourage the use of photovoltaic systems, TEP provides incentives for systems up to 20 kilowatts AC.  These up-front incentives are part of a 20-year Renewable Energy Credit (REC) agreement.

• Unisource Energy Services (UES).  UES offers up-front incentives with a 20-year Renewable Energy Credit agreement of $1.60 per watt DC for both on-grid and off-grid customers.

• Trico Electric Cooperative (Trico).  Through its “SunWatts Rebate Incentive” program, Trico’s incentives include $1.25 per watt up to 10 kilowatts, up to 30% of the total system cost.

• Sulphur Springs Valley Electric Cooperative (SSVEC).  Subject to funds availability and reservation list position, SSVEC will pay  an incentive of $2.00 per watt up to 40% of the system cost for systems 10 kilowatts or less and/or that cost less than $75,000.  SSVEC also offers a performance based incentive based on the number of kilowatts per hour a system produces.  Depending on the length of the agreement, performance incentives range from $0.182 to $0.162 per kilowatt hour up to 50% of the system cost.  Performance based incentives are given as a credit on a customer’s monthly electric bill.

In addition to the above, there is one utility that is not regulated by the Arizona Corporation Commission: 

• Salt River Project (SRP).  SRP’s “EarthWise Solar Energy” program currently provides incentives of $1.35 per watt, up to 5 kilowatts for solar energy systems.  This amount will be reduced as SRP reaches pre-established capacity milestones in its incentive program.

With all utility incentive programs, it’s important to check the latest funds availability and requirements.  Customer should also inquiry into current net metering programs.  With net metering, utilities buy back unused customer electricity for full retail credit

In part two we will discuss the various tax credits for a residential solar property. For more information on solar power incentives and tax credits, contact us!