Storage + Tax Credits
With the Federal Investment Tax Credit (ITC) being extended as a result of the Inflation Reduction Act (IRA) being signed into law, Solar Topps wants to help you make sure that you can get the most return for your system. A great way to apply the ITC is by investing in a Solar Battery Storage System when you decide to go solar, giving you’re the freedom to rollover its cost into the ITC. But in order to qualify, the battery must be connected to the system, not just the utility grid.
A Quick Reminder
The ITC is a dollar-for-dollar ratio of the reduction you pay on your solar system. As of August 16th, 2022, the Solar Investment Tax Credit will reduce the final price of your solar energy system by 30%. By the year 2033, that percentage reduces to 26%, then to 22% in 2034, and finally to 0% by 2035. 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 and incentives available to anyone that purchases their solar system.
- Residential Tax Credit: You are paid up to $1000 for your solar 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 beneficial 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 switching to solar, but why would you pay for a middleman? Having your own personal solar system with a battery backup would dramatically reduce your payments and dependence on the utility company.
Including the Battery with Your ITC?
The biggest requirement needed for you to combine the ITC with your battery purchase is that it must be charged and connected to 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 may 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.
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 Utilizing the ITC to invest in a Solar Battery Storage System when going solar is one of the best ways to take advantage of the benefits that come with making the switch and owning your energy.
Don’t pay for a middleman. Utility companies recognize that solar is a terrific investment, that they are developing their own farms to produce energy. Claim your energy independence with your personal solar and battery system from Solar Topps, and save thousands with the ITC. Be sure to reach out to our team for a free quote, and ask how Solar Batteries can fit into your system.