Thinking about making the switch to sustainable solar energy at your Scottsdale, AZ home? Installing solar energy systems—including panels, batteries and more—has a positive impact not only on the environment, but also on your home’s bottom line. Whenever your property increases in value, it’s a given that your property taxes will soon follow. Is this the case with solar energy systems? Read on to find out all you need to know about how solar panel installation in Scottsdale, AZ can impact your taxes.
What happens to my property value and taxes when I switch to solar?
Upgrading to a solar panel system to power your home increases your overall property value. Buyers always take into account the average monthly electric bills when they’re searching for a home, and they’re increasingly open to and are excited about the prospect of a solar-ready home. According to the National Renewable Energy Laboratory, installing a solar energy system is viewed as an upgrade similar to a renovated kitchen or top-of-the-line bathroom. Homebuyers are willing to pay a premium for the environmental and financial benefits of a solar-powered home.
Luckily, in the state of Arizona, you won’t see an increase in your property taxes directly after installing a solar energy system. Arizona offers the Energy Equipment Property Tax Exemption, which is for 100 percent of the increased value of the property after you’ve installed the new system. For property assessment and valuation purposes, solar energy systems are considered to add no value to the property, effectively providing you with a valuable property tax break.
What about solar tax incentives or rebates?
Luckily, investing in solar panel installation in Scottsdale, AZ comes with the added benefit of a tax incentive. When you make the switch to solar energy at your home, you’ll be eligible for the Federal Solar Investment Tax Credit (ITC), which offers a 26 percent federal tax credit for purchased home solar systems installed by December 31, 2022.
On top of the federal credit, you’ll also be eligible for state credits. The Arizona Residential Solar Energy Tax Credit provides homeowners with a 25 percent tax credit for purchased home solar systems in Arizona, but the maximum is set at a $1,000 personal income tax reduction. There’s also a Solar Equipment Sales Tax Exemption, which is set at 5.6 percent and reduces the upfront costs associated with solar system installation. With all these incentives, it’s possible to see a great reduction in your taxes for the year you have the system installed.
If you’re considering investing in solar panel installation in Scottsdale, AZ, there’s never been a better time to make the switch to clean, renewable energy. Not only will you be doing a great service to the environment by reducing your carbon footprint at home, but you’ll also save a significant chunk of money on your monthly energy bills. Contact the experienced team at Aneva Solar today to learn how solar panel installation is a win-win for the environment and your finances!