Is 2015 the year to go solar?

Is 2015 the year that your business should finally go solar?  A combination of federal and local incentives may make 2015 the biggest year in Arizona’s solar history.

Major factors for a business to consider while evaluating a solar installation in 2015:

  • 30% Federal Investment Tax Credit (ITC) – The single largest current incentive for going solar remains available to 2015 installations.  Set to reduce/expire after 2016, the Federal ITC is a major incentive that makes 2015 solar installations attractive across the nation.
  • 10% Arizona Commercial/Industrial Solar Energy Tax Credit Program – This Arizona incentive is set to continue through 2018, and allows businesses who install a solar system on their Arizona property to take a 10% tax credit on the cost of the installation (up to $25,000).
  • Net Metering – Net Metering programs offered by Arizona utilities allow a solar system owner to apply solar generation to offset electric usage at retail rates.  This allows a solar system owner to be more confident that they will realize savings at their actual cost of electricity as opposed to a wholesale value calculated by the utility.
  • Sales Tax Exemption –  Solar electric installations are exempt from Arizona sales tax when purchased from a registered solar energy contractor such as Royal Solar.  This incentive is set to expire after 2016.
  • Property Tax Exemption – Solar electric installations for on-site consumption of electricity are not to increase the assessed value of an Arizona property for property tax purposes.
  • Local Utility Incentives – Many of the electric utilities around Arizona still have incentive funds available for qualifying commercial solar installations.

The above items may significantly affect the financial analysis of a solar installation, so be sure to check with your tax professional to determine how these incentives may apply to your business.

Request a solar proposal for your business from Royal Solar today!

Comments

  1. Kathi Bishop says

    Thanks for the update on 2015. I wasn’t aware of the property tax exemption for my rooftop solar system. Sure appreciate your blog!

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