Solar Battery Storage System: Storage + Tax Credits for AZ

Updated: June 13, 2025

With the signing of the Inflation Reduction Act (IRA) into law, Solar Topps wants to ensure that you can maximize the return on your system by helping you take advantage of the extended Federal Investment Tax Credit (ITC). A great way to use the ITC is by investing in a Solar Battery Storage System when you go solar. This lets you roll over its cost into the ITC. But to qualify, you must connect the battery to the system, not just the utility grid.

A Quick Reminder About the Solar Investment Tax Credit (ITC)

The ITC is a dollar-for-dollar ratio of the reduction you pay on your solar system. As of August 16^th, 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 Solar Battery: How It Works

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 still use coal plants to make electricity. So, when you get your power from the grid, it may come from coal. 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 greatly helps homeowners and businesses go solar. Make sure to maximize your system and savings by fully utilizing it.

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. You may not use the extra energy right away, but it is there when you need it. This means you will pay less to the utility company when your solar system is not making power.

Conclusion About Solar Batteries and Tax Credits 

See the available tax credits as plentiful fruit that you can squeeze into a fresh juice of savings and benefits for your system. A great way to use the ITC is to invest in a solar battery storage system. This is one of the best ways to enjoy the benefits of going solar 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.