Let’s face it. Solar power is an investment, and the upfront costs can be daunting for some homeowners. That’s why many renewable energy tax breaks and rebate programs are so attractive.
In addition to incentives that have been offered the last few years, did you know that solar panels are exempt from sales tax in Arizona?
That’s right! As of the date of this publication, property owners in Arizona are able to keep a bit more of their cash when they invest in solar panels.
Several years ago (actually before the recession hit), state legislators agreed to adopt a measure to exempt solar power projects from sales tax. This means that a consumer purchasing one or all of the following items will not pay more than the retail price of: (1) materials like solar panels and electronics; (2) the contractor’s labor to install solar panels, and (3) engineering and consulting time for the solar power system design.
So what will this save you?
Depending on where the consumer lives, the sales tax may range from about 8% to over 9% of the total purchase price. When solar panels are exempt from sales tax, that could be a big chunk of change! With the average cost of a residential solar power system about $40,000, which can be reduced to about $18,000 with tax credits and incentives, you can save about $1, 500 on top of that.
The reason why Arizona has adopted a sales tax exemption for solar power is to promote the renewable energy resource in this sunny locale.
Would this do the trick for you? In other words, would a sales tax exemption be the tipping point to convince you to finally go solar?