Arizona Homeowners Facing Deadline for 2012 Solar Tax Credits

The sun is setting on solar tax credits for 2012. To take advantage of generous federal and state tax incentives for 2012, homeowners must purchase and install an eligible solar system by December 31, 2012.

"Solar makes great financial sense, especially when coupled with the excellent government incentives that are available in Arizona," says Kelly Dancer, director of Heliocol West, a division of Green Energy, Inc.

The 30 percent federal tax credit, combined with the Arizona state tax credit of up to $1,000 and local utility incentives of up to $1,250, make this one of the most economically-sound opportunities to have a solar system installed in your home, Dancer explains.

Qualifying technologies include solar domestic water heating systems, solar swimming pool and spa heating systems and photovoltaic (or solar electric) systems.

"Those of us who live in the southwest are fortunate in that we have an abundance of free solar energy to heat our home hot water, create our own electricity and even enjoy a warm swimming pool," Dancer says. "The local climate is particularly suitable for solar thermal applications."

Although most homeowners are familiar with photovoltaic systems, Dancer says many people don't realize that solar thermal technology is often a better bargain with a greater return on investment.

"Solar pool heating, according to the U.S. Department of Energy, is the most cost-effective use of solar energy in many climates," Dancer says. "And solar water heating systems reduce water heating bills by hundreds of dollars each year. What makes solar even more attractive is that you'll never see a rising utility bill or rate increase for using this free, clean energy source."

Unlike photovoltaic systems, which convert the sun's light into usable energy, solar thermal systems generate energy by capturing and amplifying the sun's heat.

"If you've ever left a garden hose in the sun, and felt hot water pouring out when you turn the spigot, you've seen solar thermal technology at work," says Dancer. "Solar thermal technology is an ultra-efficient and reliable generator of hot water for household use or for heating pools and spas."

Al MacDonald, of Mesa, Ariz., says his Heliocol solar pool heating system is his favorite household investment.

"I don't know what I'd do without it," says MacDonald. "This is the best money I've ever spent. Why have a pool here in Arizona if you can't swim in it for half the year?"

Al MacDonald and Heliocol Sales Manager Michael Chung

MacDonald says his Heliocol system allows him to spend more time in his pool at little additional cost.

"Just last week my grandkids came over and we were swimming in water heated to 82 degrees," MacDonald says. "That's pretty great for late November, don't you think? I swim almost every day and I don't think I've seen more than a $20 increase in my monthly utility bills since we had the Heliocol system installed."

There's no disputing the benefits of solar technology, says Dancer, especially in the sunny southwest. "But smart homeowners will take advantage of the generous incentives currently available and make a smart investment even smarter. Anyone hoping to claim tax credits for this year needs to act before December 31."

For more information about Arizona's solar tax credit and the December 31, 2012 deadline, contact the Arizona Solar Tax Credit line at 1-800-366-6862.