Go Solar and Shrink Your Taxes

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Installing solar panels is a great long-term investment in your home. While it requires an upfront investment, as any investment does, it can be offset by years of significantly reduced energy bills. And the good news is there has never been a better time to reduce the upfront costs to make your return on investment even more valuable. Here are some practical tips to help you capture all the possible savings opportunities.

Hardware and Installation

Before you sign on the dotted line on any solar project, you’ll want to understand all the costs of solar hardware and installation upfront. Manufacturing solar panels is expensive. Silicon needs to be refined to remove all contaminants using precision technology. Solar inverters and batteries utilize rare earth minerals including lithium that are costly to mine and manufacture. Adding in copper, other metals, and glass adds to the expense of solar panels.

Installation is the biggest expense overall. Installation fees include all the necessary state and local permits and inspection processes. It’s important to select an experienced local installation company that can help design the best solar system for your home’s specific circumstances. You’ll want to carefully vet solar installation companies and check on their customer satisfaction ratings and installation expertise. Reputable companies will offer free estimates upfront and will ultimately provide you with the best quality product. In other words, they’ll save you money in the long run.

Warranties and Service Contracts

Checking solar panel warranties and service contracts is an important way to save money on a solar installation. Quality solar panels, inverters, and batteries may cost more initially, yet with longer product warranties covering hardware and labor costs, they’ll cover your expenses if there’s any issue with your system.

Federal and State Tax Credits

The federal investment tax credit (ITC) has been raised to 30%. This allows you to reduce the total cost of your solar panel system by a significant amount. The Inflation Reduction Act of 2022 extended this credit through 2032. Solar energy storage devices with a capacity rating of 3 kWh or greater are now included. If the credit is greater than what you owe in federal taxes, the credit can roll over up to five years.

Arizona also has a solar energy credit for purchasing and installing a solar energy device, valued at 25% of the cost, up to $1,000 per residence. The credit is applied when you file your taxes during the year your system is installed. In addition, solar panels are exempt from Arizona’s sales tax and any increase in home value after installing solar panels is not taxed either.

Sound interesting?

Partner With Cool Blew Solar

Start by reaching out to a trusted solar installation company in peoria. At Cool Blew Solar, we offer free upfront estimates and experienced technicians who will guarantee the best system suited to your solar energy needs. Schedule an appointment with us today at 623-234-2836.