2025 Solar Incentives Guide for Show Low, AZ - Tax Credits & Rebates

In this guide, we'll cover the latest solar incentives and rebates available in Show Low.

You'll learn about:

  • Local & State Solar Incentives
  • Federal Tax Credits (Updated for 2024 and beyond)
  • Ways to optimize your solar investment

Solar installers are experts in maximizing your solar tax credits and rebates.
Get a free quote from one of our trusted Show Low solar installers to see how much you can save.

By EcoWatch Local Advisors

Data Analysis: James Savino

Ranking Methodology: Karsten Neumeister

Updated January 24, 2025

Why you can trust EcoWatch

We work with a panel of solar experts to create unbiased reviews that empower you to make the right choice for your home. No other site has covered renewables as long as us, which means we have more data and insider information than other sites. Our rankings are never affected by revenue or partnerships.

What Solar Tax Credits, Incentives, and Rebates are Available in Show Low?

Solar and Wind Equipment Sales Tax Exemption

Incentive Type:
Sales Tax Incentive
100% of sales tax on eligible equipment

Residential Solar and Wind Energy Systems Tax Credit

Incentive Type:
Personal Tax Credit

Qualifying Wood Stove Deduction

Incentive Type:
Personal Tax Deduction
Total cost, exclusive of taxes, interest and other finance charges

Energy Equipment Property Tax Exemption

Incentive Type:
Property Tax Incentive
100% of increased value

Federal Residential Renewable Energy Tax Credit

Incentive Type:
Personal Tax Credit
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.

Source: https://www.dsireusa.org/


Solar incentives are designed to encourage homeowners to switch to renewable energy by offering incentives meant to lower the financial burden of solar panel installation and use. These incentives could include upfront discounts, cash back or credit towards your monthly utility bill. Some incentives are offered by the federal government, some by the Arizona government and some by your utility company, county or municipality. Some broad categories of solar incentives include:

  • Net Metering: Net metering factors in after your solar panels are up and running. If you have a net metering agreement with your Show Low utility company, the company will subtract the value of the excess energy your solar system produces from your utility bill each month. In some locations, this credit is dollar-for-dollar, while in other areas you might receive a refund equivalent to a percentage of the value.
  • Rebates: Solar rebates might be provided by your local utility company, or by your state or county. These rebates are essentially partial refunds that are applied after you purchase solar panels and before tax credits are calculated.
  • Tax Credits: These credits are dollar-for-dollar reductions (not deductions) in the amount of tax that you owe the federal government.
  • Tax Exemptions: Your solar panel system could qualify for both sales tax and property tax exemptions. Sales tax exemptions are effective at the time of purchase. Property tax exemptions let you exclude the value that solar panels add when you are calculating property taxes on your home.
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Federal Solar Incentives

When someone says "solar incentives," you probably think of federal incentives first. The Federal Solar Investment Tax Credit, or ITC, is likely the most commonly known federal solar incentive. The ITC provides you with a tax credit for a specific percentage of your solar system's cost.

The ITC can be applied to solar systems installed after January 1, 2006, on a primary or secondary residence in the United States that you own. The credit initially covered 30% of the total cost – for panels, accessories, labor and equipment – although that amount may range from 26-30%, depending on when your solar system was installed. There is no cap on the claim amount.

Your local Show Low solar panel installer can give you more information about the ITC and how it may apply to your situation.

The Inflation Reduction Act, passed in August 2022, added more provisions to the ITC (as well as retitling it the Clean Energy Credit). Homeowners can now qualify for a credit of 30% of the total costs of solar system installation for projects started after January 1, 2022, and completed before the end of 2032. This percentage will then decrease on a yearly basis until the Clean Energy Credit expires in 2035. The expansion to the program also makes it easier to get credit for energy storage systems, starting in 2023.

More information about the new Inflation Reduction Act can be found here. Your local Show Low solar panel installer can answer any questions you have and explain how the new Clean Energy Credit applies to you.

State & Local Solar Incentives

Some solar incentives may be offered at the local or state level. As with federal incentives, these could include rebates, tax credits and more. Incentives might be provided by your county or municipality, or by the state of Arizona. Certain incentives may be available for only a limited time, while others are ongoing.

Next Steps for Installing Solar in Show Low

Nationwide solar energy use has gone up significantly in the last 15 years, in part due to the proliferation of solar incentives. You might receive these incentives from your local utility company, the Arizona government or the federal government. Getting in touch with your local Show Low solar panel installer is the best first step towards getting all the incentives you qualify for when you switch to solar energy.

EcoWatch's Show Low, AZ Solar Incentives FAQs

How do I know if I qualify for different solar incentives?

It's a smart idea to get in touch with your local Show Low solar installer to get an understanding of which incentives your project may qualify for. Usually, solar incentives apply to new solar systems installed on a property you own (in the U.S.) between the dates specified by the incentive. Some incentives, such as those provided by the Arizona government, might have additional requirements.

My home already has solar panels installed. Do I qualify for any incentives?

An excellent idea would be to talk to the company that installed your solar panels – or call a local Show Low solar installer — to better understand which incentives you may qualify for. If your system was installed after January 1, 2022, you likely qualify for the newly increased 30% tax credit under the Inflation Reduction Act. Systems installed between 2006 and 2021 may qualify for a tax credit of 26-30%.

I want to trade in my old appliances for ones that are more energy-efficient. Are there any benefits I can claim?

Under the new Inflation Reduction Act, there are a variety of new financial incentives that are available when you make eco-friendly improvements to your home. More details regarding these incentives, including information about incentives for purchasing new appliances, can be found here.

What if I am planning to add a solar system to a vacation home, rental property or commercial property? Can I still qualify for incentives?

While we recommend getting in touch with your local solar installer and/or tax professional to fully understand what solar incentives apply to you, many incentives will apply to a second home, as long as it is in the United States and owned by you. There may be other incentives available for commercial properties specifically, depending on the details.

Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.

Solar incentive research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.

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