Battery Storage and Tax Credits for Solar

With the Federal Investment Tax Credit (ITC) set to expire within a few years, Solar Topps wants to help you make sure you can get the most for your system. A great way to utilize the ITC is to invest in a Solar Battery Storage System when you decide to go solar since you can roll the cost of the battery into the ITC. But to qualify, the batter must be connected to the system, not just the utility grid.

A Quick Reminder

The ITC is a 1:1 ratio of the reduction you pay on your solar system. In 2022, the Solar Investment Tax Credit will reduce the final price of your solar energy system by 26 percent. By the year 2023, that percentage reduces to 22 and then 0% by 2024. This credit only applies to home or business owners who are purchasing their solar panels, not those that are leasing their system. Along with the ITC, Arizona has credits available to someone who purchases their solar system.

  • Residential Tax Credit: You are paid up to $1000 for your panels.
  • Arizona Solar Equipment Sales Tax Exemption: You will not need to pay sales tax for your system.
  • Arizona Energy Equipment Property Tax Exemption: You are not required to pay additional taxes that would increase the value of your home once your system is installed.

Breaking Down the Battery

A solar battery works by storing excess energy your solar system produces. It releases this stored energy when your home requires more electricity than the system is producing at that moment. You can have multiple batteries attached to your system for extra storage in the event of a power outage. Solar Batteries are a great investment to make sure the energy generated by your solar system, is not going to waste. This can be advantageous to someone passionate about “going green.” Some utility companies are still using coal plants to produce electricity, meaning when you get your electricity from the grid, you are getting coal-generated energy. Some utility companies are starting to switch to solar, but why would you pay for a middle-man? Having your own personal solar system with a battery included would dramatically reduce your dependence on and payments to the utility company.

Including the Battery with Your ITC?

The only major requirement needed for you to take advantage of the ITC with your battery purchase is that it must be connected to and be charged by your solar system, not the utility grid. The ITC is a major boost for helping thousands of home and business owners go solar, so be sure you are squeezing every drop out of it to maximize your system and savings.

What are Some Additional Perks to Batteries?

Since Arizona no longer has Net Metering, a program where the utility would sell back electricity a solar system owner would put into the grid at a cheaper price, a solar battery makes for a wonderful addition to your solar system. As we mentioned before, you get to capitalize on the energy your system produces without it going to waste. While you’re not tapping into it immediately, you have that extra energy to use whenever needed so you will not need to pay as much to the utility company when your solar system is not generating power.

Conclusion

The available tax credits should be seen as plentiful fruit that can be squeezed into a fresh juice of savings and benefits for your system. A great way to utilize the ITC is to invest in a Solar Battery Storage System when you decide to go solar since you can roll the cost of the battery into the ITC.

Don’t pay for a middleman. Utility companies recognize solar as such a great investment, they are starting their own farms to produce your energy. Claim your energy independence with your personalized solar system from Solar Topps, boosted with a battery, and saving thousands with the ITC. Reach out to our team for a free quote. Be sure to ask about Solar Batteries and how that would fit in to your system.

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