If you are exploring adding solar panels to your home, it’s likely that one of the largest benefits of doing so is that it can significantly increase the value of your property. You may not realize that making changes to your home, such as finishing a basement or adding an extra bedroom, can lead to your property taxes increasing because your home is more valuable than before the improvements. Luckily, installing solar energy systems does not increase your annual property taxes for residents of many states.
What Are Solar Property Tax Exemptions?
Whether you file your taxes at the first opportunity in the middle of January or wait until April, solar property tax exemptions offer homeowners the option to exclude the increased value of solar panels on their home for taxes. For example, if you are a resident of Arizona where your property tax rate is 0.62%, and the installation of solar panels adds $25,000 to your home’s value, the solar property tax exemption would save you $93 on your taxes annually. While $93 may sound insignificant, if you live at the home for the lifetime of a typical mortgage of 30 years, this would be a savings of $2790 that will quickly make the cost of solar panels well worth the investment. Currently, 33 states offer some type of solar property tax exemption.
What Are the Benefits of Solar Panels?
In addition to the tax advantages and increased home value, installing solar panels offers a myriad of other benefits. Since solar panels derive clean energy directly from the sun, you’ll be combating greenhouse gas emissions and reducing the world’s collective dependence on fossil fuels that emit harmful gases directly responsible for pollution and climate change.
In Arizona, where sunshine is abundant nearly all year round, you can expect to significantly reduce or entirely eliminate your energy bills. Traditionally, you can expect to start saving from day one. Once the initial investment of the solar panels is paid off, you will pay either nothing or very little toward energy for the duration that you live in the home.
To learn more information about the process of installing solar on your home, give the friendly, knowledgeable, and professional team at Aneva Solar in Scottsdale, AZ a call. We’ll take the time to do a comprehensive assessment of your property and are happy to answer any of your questions. We look forward to hearing from you soon!