Tax Incentives for Solar

TAX INCENTIVES ADD UP
TO POWERFUL SAVINGS

Whether you’re in the market for a residential photovoltaic or business photovoltaic system, you can dramatically reduce the cost of your solar system with significant federal and state tax credits. See the typical examples of savings below and click on the link to your utility company to find out more about specific rebates available to you. There’s no better time to “Own Your Own Power”.

RESIDENTIAL PHOTOVOLTAIC SYSTEM

The chart below shows typical savings after federal tax credit and state tax credit.

 

Estimated Annual Electric Usage (kWh) 12,250 14,000 17,500
Annual and Monthly Bill @ $0.123 $1506 / $125/Mo $1722 / $144/Mo $2153 / $180/Mo
DC 7,000 watts 8,000 watts 10,000 watts
System Price Installed $19,250 $22,000 $27,500
Federal Tax Credit @ 30% -5,775 -6,600 -8,250
State Tax Credit -1,000 -1,000 -1,000
Net Cost to Customer $12,475 $14,400 $18,250

 

COMMERCIAL PHOTOVOLTAIC SYSTEM

With federal and state tax credits, a photovoltaic system is a smart choice for businesses too. The chart below shows the considerably lower cost after all rebates and tax credits. System size is dependent on usage.  Office, Industrial and Multifamily rates vary greatly. This chart reflects usage of a 3,000 square foot office building in Arizona with an annual average electric bill of $6670 at current rates.

 

Solar Array Size 28,500 KW (DC)
Cost of Solar $78,375
Minus Federal Investment Tax Credit -23,512
Minus Arizona Investment Tax Credit -7,837
Net Cost of System before IRC Section 179** $47,026

 

* Rebate amounts subject to change, check with your ABCO Solar representative.
**No depreciation is considered in these calculations, consult a tax professional.

 

Solar panels for business use are considered as personal property and qualify for IRS Section 179 up to $500,000 and the accelerated depreciation of up to 50% in yr 1. Speak to your tax advisor.


For more information on tax credits, please feel free to call us at (520) 777-0511 or (800) 292-2280. We will help you apply for your tax credits.

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