Commercial Solar Incentives in Arizona

This material has been prepared for informational purposes only. Greentech Renewables does not provide tax, legal, or accounting advice. Information displayed is not project-specific and will require an official written proposal by a certified installer. 

Arizona Solar Tax Exemption 

As part of Arizona’s statewide policy on incentivizing renewable energy, both the sale and installation of solar energy equipment by contractors are exempt from AZ state sales tax. This can reduce the upfront cost of a commercial solar project and benefit the economic case for installing commercial solar. 

Arizona Energy Equipment Property Tax Deduction 

The installation of on-site renewable energy systems and energy-efficient building components can qualify your business for a property tax deduction, contributing to savings on your commercial solar system.  

Arizona’s state-level incentive programs can be combined with federal solar incentives (detailed below) to produce significant cost savings in installing commercial solar or solar plus storage systems.

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30% Business Energy Investment Tax Credit (ITC) - Deadline to receive credits December 31st, 2027!

The Business Energy Investment Tax Credit program allows businesses to claim 30% of their solar system costs as a federal tax credit. Additional tax credits are available depending on the district. Connect with a local installer to find out if you qualify for additional commercial solar tax credits.

However, your solar system must be completed and placed in service by December 31st, 2027 in order to claim these tax credits. Get in touch with one of our certified installers to learn more about receiving commercial solar incentives. 

 

3-6 Year Average Investment Recovery 

Most commercial solar systems pay for themselves in as little as 3 to 6 years considering tax incentives, energy savings, and depreciation benefits. With a system lifespan of  25+ years, ROI can be substantial. 

15-20% Average Return on Investment 

Exact ROI varies depending on system size, energy consumption, utility rates, and several other factors. Your installer will perform a complimentary analysis of your current energy spend and solar potential to determine your ROI. 

25-Year Equipment Warranties

All of our equipment has been pre-qualified based on reliability and performance history and is fully backed by product guarantees.

Business owners in Arizona may also take advantage of the federal solar incentives available. When applied in combination with the state's incentives, these solar incentives have the potential to significantly reduce the cost of installing a solar system in Arizona

Business Energy Investment Tax Credit (ITC)

The Business Energy Investment Tax Credit program allows businesses to claim 30% of their solar system costs as a federal tax credit. Additional tax credits are available depending on the district. 

Connect with a local installer to find out if you qualify for additional tax credits. 

Renewable Electricity Production Tax Credit (PTC)

Business owners in Arizona may take advantage of the federal renewable electricity production tax credit (PTC). This provides an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualifying energy sources. Projects under 1 megawatt (MW) can receive 1.5 to 2.75 cents/kWh depending on the type of facility. Projects over 1 MW will receive a base tax credit of 0.5 cents/kWh.

Keep in mind that solar project owners cannot claim both the ITC and PTC for the same property. Discuss with a solar installer to understand which tax credit incentive you should claim for your solar system.

Modified Accelerated Cost-Recovery System (MACRS)

Arizona business owners can take advantage of the Modified Accelerated Cost Recovery System (MACRS). This program allows business owners to recover some of the costs of solar panel installation through a five-year MACRS schedule.

Arizona Commercial Property-Assessed Clean Energy (C-PACE)

C-PACE is a financing program that allows approved commercial property owners to borrow money to pay for energy improvements without a large upfront cost coming out of the business' pocket.

Rural Energy for America Program (REAP Grant) 

The USDA's "Rural Energy for America Program," or “REAP,” offers a grant to cover 50% of commercial solar system costs to encourage agricultural and rural businesses to maximize their energy efficiency with solar.

This grant is only available if you own a small business in an area with less than 50,000 in total population. 

FIND OUT IF YOU QUALIFY!

Connect with a local Arizona installer to see which federal incentives can contribute to your solar system. 

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