As of February 2024, Arizona residents pay less than 15 cents per kilowatt-hour for electricity. This makes Arizona perfect for home solar investment. With plenty of sun and great incentives, Arizona Home solar power can save you money and reduce your carbon footprint.
A typical solar panel system in Arizona costs $34,615 before incentives. The average price per watt is $3.01, below the national average of $3.33/ The federal solar investment tax credit(ITC) covers 30% of the total system expense.
After applying the ITC, the average cost drops to $24,231. Arizona also offers a state tax credit of 25% of the system value or $1,000, whichever is lower.
Solar power boosts home value and cuts electricity bills in Arizona. Solar panels can, on average, increase a home’s value by 4.1%.
The average payback period is 11 years, and the return on investment timeframe ranges between 8 and 14 years. This makes solar a smart financial choice for Arizona homeowners.
Key Takeaways
- Arizona is an ideal state for Arizona home solar due to abundant sunshine and attractive incentives.
- Arizona’s average solar panel system cost is lower than the national average.
- Federal and state tax credits significantly reduce the upfront cost of going solar.
- Installing solar panels can increase home value and save electricity bills.
- The payback period and return on investment make solar a smart financial decision for Arizona homeowners.
Why Arizona is Ideal for Home Solar
Arizona’s abundant sunshine makes it perfect for solar energy. With over 300 sunny days yearly, solar panels generate huge amounts of energy year-round, allowing for more clean electricity production compared to less sunny regions.
Abundant Sunshine and Solar Potential
Arizona’s solar potential is unmatched. It shares the longest peak sunlight hours with Nevada, New Mexico, and California. This allows solar panels to operate at peak efficiency.
Go for efficiency when choosing solar panels for your Arizona homes. Panels with over 20% efficiency work best in this climate. Monocrystalline panels excel due to their high efficiency in hot conditions.
Cost Savings on Electricity Bills
Arizona homeowners can slash their reliance on grid power with solar panels. The average monthly electricity bill is $147, but solar users save about $1,800 yearly.
Over 25-30 years, these savings add up to tens of thousands. This is especially true as electricity costs rise. APS increased rates for homes by 8% in March 2024.
Homeowners can cut grid needs by 75% by generating their own power. This is particularly helpful during high-demand summer months.
| Solar Panel System Size | Average Cost (before incentives) | Average Cost (after federal tax credit) |
|---|---|---|
| 6 kW | $14,760 | $10,332 |
| 8 kW | $20,320 | $14,224 |
| 10 kW | $26,100 | $18,270 |
Solar panel costs have decreased over the last decade, making them more affordable. In Arizona, solar panels cost between $2.46 and $2.61 per watt. Systems range from $14,760 to $26,100 for 6kW to 10kW.
The federal tax credit cuts 30% off the price. After the tax credit, the price drops to $1.78 per watt.
When you invest in solar for your Arizona home, you can expect a payback period of 5.79 to 15 years. It’s a short period, thanks to the state’s abundant sunshine.
Solar Incentives and Rebates in Arizona
Arizona offers a lot of incentives to make solar energy more affordable. These include tax credits, sales tax exemptions, and utility rebates. These benefits lower the cost of installing solar panels a lot.
Federal Solar Investment Tax Credit (ITC)
The Residential Clean Energy Tax Credit lets Arizona homeowners claim 30% of their solar system costs. This results in an average savings of $3,243. For a 5-kW system costing $10,809, the credit reduces the price to about $7,566.
The federal solar tax credit will decrease to 26% in 2033. It will then drop to 22% in 2034 before expiring in 2035.
Arizona Home Solar Energy Tax Credit
Arizona residents can get a state solar tax credit of 25% of installation costs. This one-time credit is capped at $1,000. The Credit for Solar Energy Devices in Arizona offers an average savings of $1,000.
Solar Equipment Sales Tax Exemption
In Arizona, you can get a 100% sales tax exemption on eligible solar equipment. This one-time exemption saves you from extra costs. With this, you can have an average annual savings of 0.72% of the system’s value.
Energy Equipment Property Tax Exemption
The average cost of solar panels in Arizona is around $2.31 per watt. You can enjoy a 100% property tax exemption whe you install solar panel systems in your home. This exemption continues after the energy equipment is installed. And property taxes don’t increase after installing a solar system, giving you financial relief.
Local utility companies offer compensation rates for net billing. These rates range from $0.0633/kWh to $0.07619/kWh. Residents earn credits on their electricity bills for excess energy generated by their panels.
Because of Arizona’s sunny climate and many tax incentives, the average payback period for solar panels is about six and a half years only.
Choosing the Right Solar Installer in Arizona
Selecting the right solar installer is necessary for your Arizona home. The EnergySage Marketplace features 15 solar companies in Arizona. These companies have an impressive average rating of 5.0 based on 2,802 customer reviews.
Importance of NABCEP Certification and Proper Licensing
Look for companies with North American Board of Certified Energy Practitioners (NABCEP) certifications. These show expertise and commitment to industry standards. In Arizona, solar installers must hold specific electrician licenses to legally perform installations.
EnergySage ranks solar companies into Approved, Advanced, Elite, and Elite+ categories. Elite+ installers represent the most experienced and celebrated companies. These top-tier installers have earned the trust of thousands of satisfied customers.
Comparing Quotes and Reading Reviews
Don’t quickly settle for the first installer you see. Gather quotes from at least three different solar installers to assess the cost per watt, a standardized metric for evaluating installations. Then, compare quotes to make sure you’re getting the best value for your investment.
Read online reviews from previous customers on platforms like Google, Yelp, and Angie’s List. These provide authentic feedback about various solar companies in Arizona. Pay attention to comments about communication, timeliness, and overall customer satisfaction.
Reviews offer a glimpse into the quality of work and service you can expect. They help you make an informed decision about your solar installer.
| Solar Installer | Location | Year Established | EnergySage Rating |
|---|---|---|---|
| Solar Optimum | Peoria | 2008 | Elite+ |
| IntegrateSun, LLC | Phoenix | 2010 | Elite+ |
| Demand Construction | Tucson | 2019 | Elite+ |
| Simple Solar | Phoenix | 2022 | Elite |
| United Energy Partners | Tempe | 2022 | Elite |
Think about factors like equipment quality, warranty coverage, and years of experience when evaluating solar installers. Look for any awards or recognition they have received. A reputable installer should be transparent about their processes.
They should explain technical terms and financing options clearly. Good installers also help with local permit requirements and HOA restrictions. Research, compare quotes, and read reviews to find your ideal solar partner.
Arizona Home Solar: Powering Your Life with Clean Energy
Arizona ranks fifth in the nation for residential solar panel installation.
Tax breaks make solar energy in Arizona more affordable. Different solar installers provide financing options with quick credit decisions. They guide customers to make smart financial choices.
Arizona utilities support renewable energy with special rate plans. APS offers two plans for solar users. Under the Renewable Rider program, they buy back excess energy.
“Going solar in Arizona is a smart investment that not only saves money but also contributes to a cleaner environment for future generations.”
To save more, use energy when solar production peaks during the day. Keep an eye on your system’s performance, especially during weather changes. Report big changes to your installer.
Over time, you may need to upgrade parts like inverters and panels. Let your provider know about any major system size increases.
Solar tech keeps improving and getting cheaper. More Arizonans are likely to adopt home solar power. This could lead to better incentives and solar policies in the future.
AZ Solar: Invest Now, Reap the Rewards
Arizona’s sunny climate and high energy use make it perfect for residential solar panels. Solar installations in this state cost $15,000 to $25,000 before incentives. But solar incentives like tax credits lower this cost a lot.
Arizona homeowners can save $1,000 to $2,500 yearly on electricity bills with solar panels. Homes with solar systems sell for more, 17% higher and 20% faster, than those without. In fact, Arizona metro solar homes sell for 4.1% more than non-solar homes, according to Zillow.
It’s important to choose a reputable company with licensed, NABCEP-certified pros for your Arizona home solar project. Compare quotes and read reviews carefully too.
When you go for solar energy, you can enjoy long-term financial and environmental benefits. You can cut electricity costs and support sustainability. And as solar tech improves, residential solar panels in Arizona could become even more widespread.
Frequently Asked Questions
How Much Sunlight Does Arizona Receive Annually?
Arizona enjoys over 300 sunny days each year, making it perfect for homeowners to harness solar power.
What is the Average Monthly Electricity Bill in Arizona?
Arizonans pay an average of $157.41 monthly for electricity. This exceeds the national average by a significant margin. Installing solar panels can save residents up to $1,888 yearly on energy costs.
What is the Federal Solar Investment Tax Credit (ITC)?
The federal solar ITC offers homeowners a 30% tax credit on their system cost. In Arizona, this credit averages $10,385. It’s applied to the homeowner’s federal income tax.
What is Arizona’s Residential Solar Energy Tax Credit?
Arizona offers a Residential Solar Energy Tax Credit. It provides 25% of the system value or $1,000, whichever is less.
What Should I Look for When Choosing a Solar Installer in Arizona?
Choose a solar installer with NABCEP certifications. Ensure they have proper licensing and bonding for their work. Check online reviews on Google, Yelp, and Angie’s List for their reputation.
How Do Solar Panels Contribute to a Cleaner Environment?
Solar panels reduce reliance on fossil fuels. This helps fight pollution and global warming. Arizona homeowners can enjoy financial benefits while helping the environment.
What Makes Arizona an Excellent State for Investing in Solar Power?
Arizona’s sunny climate and high energy use make it ideal for solar power. The state also offers attractive solar incentives. As technology improves, more Arizonans are expected to adopt residential solar power.
References
Best Solar Panel Installation Companies in Arizona
Is Solar Worth It in Arizona? (2024 Homeowner’s Guide)
How Much Do Solar Panels Cost In Arizona, And Are They Worth It?
Arizona Solar Incentives, Tax Credits & Rebates 2024
