Is It Worth Going Solar in Glendale, Arizona?
Going solar in Glendale, Arizona, can be a financially beneficial decision due to several incentives and the high potential for energy savings. Here are the key financial benefits and considerations:
Financial Benefits
- The Federal Solar Investment Tax Credit (ITC), now referred to as the Clean Energy Credit, offers a 30% tax credit for solar installations completed after January 1, 2022, and before the end of 2032. This credit will decrease to 26% in 2033 and 22% in 2034, ending in 2035.
- Arizona offers a state tax credit of 25% of the total system cost, up to $1,000. This credit is deducted from your state tax liability.
- Solar systems in Arizona are exempt from sales tax, reducing the upfront cost. Additionally, the value added to your home by the solar system is exempt from property tax, meaning your property taxes won’t increase due to the installation.
- Although Arizona replaced net metering with net billing in 2016, which is less beneficial, you can still receive some compensation for excess energy produced by your solar panels. Pairing your system with a battery can help maximize savings by storing excess energy for later use.
Read our full guide and breakdown of the financial and other benefits of going solar in Ariozna.
Energy Savings:
The levelized cost of solar energy in Glendale is about $0.05 per kWh, compared to a projected $0.22 per kWh over the next 25 years for grid electricity. This can result in significant monthly savings on your electricity bill, potentially up to $175 per month, or around $2,101 per year.
Increased Home Value
Installing solar panels can increase your property value by approximately 4.1%, which translates to a significant increase in home equity without additional property taxes.
Cost Considerations
The average cost of a 5 kW solar system in Glendale ranges from $12,650 to $21,300 before incentives, or $2.53 to $4.26 per watt. After applying the federal tax credit, the cost can be significantly reduced.
Maintenance Costs
Solar panels generally require minimal maintenance. However, occasional cleaning and potential removal for roof repairs can incur additional costs. Cleaning services typically cost between $75 and $150.
Financing Options:
There is no such thing as free solar panels in Arizona. You can choose to pay for your solar system upfront, take out a solar loan, or lease the system. Each option has different financial implications:
- Cash Purchase: Highest upfront cost but offers the greatest long-term savings.
- Solar Loan: Lower upfront cost but includes interest payments, leading to higher overall costs compared to a cash purchase.
- Lease: No upfront cost but offers the least savings over time and does not allow you to take advantage of tax credits.
Given the high solar irradiance in Glendale, the availability of federal and state incentives, and the potential for significant energy savings, going solar in Glendale,
Arizona, is a financially sound decision. It can reduce your electricity bills, increase your property value, and provide long-term financial benefits. Consulting with local solar installers can help you understand the specific incentives available and optimize your solar investment.
Average Cost of Electricity in Glendale, Arizona
The average residential electricity rate in Glendale, Arizona, is approximately 10.85 cents per kilowatt-hour (kWh). This rate is slightly lower than the state average and significantly lower than the national average.
For commercial and industrial users, the rates are 8.84 cents/kWh and 6.1 cents/kWh, respectively. The average monthly electricity bill for residents in Glendale ranges from $100 to $200, depending on usage and the size of the residence.
How Solar Panels Can Reduce or Eliminate Electricity Costs
The cost of installing solar panels in Glendale varies based on the system size and other factors.
As of June 2024, the average cost for a 5 kW solar panel system is about $10,649 before incentives.
After applying the federal tax credit of 30%, the cost drops to approximately $7,454. Additionally, Arizona offers a state tax credit of 25% of the system cost, up to $1,000, further reducing the overall expense.
Solar panels can significantly reduce or even eliminate electricity costs. For example, a 5 kW system can save a homeowner about $11,299 over 20 years on electricity costs.
The payback period for solar panel installations in Glendale is typically around 7 to 11 years, depending on the system size and efficiency. After the payback period, the electricity generated by the solar panels is essentially free, leading to substantial long-term savings.
Example Savings
5 kW System:
- Cost Before Incentives: $10,649
- Cost After Federal Tax Credit: $7,454
- Annual Savings: Approximately $2,101
- 20-Year Savings: Approximately $42,020
10 kW System:
- Cost Before Incentives: $21,298
- Cost After Federal Tax Credit: $14,909
- Annual Savings: Approximately $4,202
- 20-Year Savings: Approximately $84,040
Impact of Net Billing
Net billing allows homeowners to offset their electricity costs by generating their own power and receiving credits for excess production. This can still lead to significant savings, especially when combined with energy storage solutions like batteries, which store excess energy for use during non-sunny periods.
Installing solar panels in Glendale, Arizona, can lead to substantial financial benefits by reducing or eliminating electricity costs. The combination of federal and state incentives, along with the high solar irradiance in the area, makes solar a viable and attractive option. While net billing offers slightly less financial benefit than traditional net metering, it still provides a way to offset electricity costs and achieve long-term savings.
Average Solar Panel Costs in Glendale, AZ (2024)
The average cost of going solar in Arizona, varies based on the system size and the output performance. Below is a comprehensive table that breaks down the costs by system size, including the cost before and after the federal Investment Tax Credit (ITC).
| System Size | Avg Cost per Watt | System Cost (Before ITC) | System Cost (After ITC) |
|---|---|---|---|
| 3 kW | $2.28 – $2.53 | $6,845 – $7,479 | $4,792 – $5,235 |
| 4 kW | $2.28 – $2.78 | $9,127 – $11,120 | $6,389 – $7,795 |
| 5 kW | $2.28 – $2.74 | $11,408 – $13,700 | $7,986 – $9,604 |
| 6 kW | $2.28 – $2.64 | $13,690 – $15,174 | $9,583 – $11,071 |
| 7 kW | $2.28 – $2.61 | $15,972 – $17,070 | $11,180 – $12,799 |
| 8 kW | $2.28 – $2.66 | $18,253 – $20,240 | $12,777 – $14,874 |
| 9 kW | $2.28 – $2.56 | $20,535 – $23,490 | $14,375 – $16,153 |
| 10 kW | $2.28 – $2.54 | $22,817 – $26,100 | $15,972 – $18,270 |
Local and Utility-Specific Incentives, Tax Credits, and Rebates for Solar Installations in Glendale, Arizona
Glendale, Arizona, offers several local and utility-specific incentives, tax credits, and rebates to encourage solar installations. These incentives can significantly reduce the cost of going solar and improve the return on investment. Here are the key incentives available:
Salt River Project (SRP) Solar Water Heating Program
- Type: Rebate
- Details: SRP offers rebates for solar water heating systems. This program is designed to encourage the use of solar energy for water heating, which can reduce overall energy consumption.
Check our detailed guide on Arizona solar pool hearting.
Net Billing
- Type: Credit for Excess Energy
- Details: Glendale residents who are customers of SRP or other local utilities can benefit from net billing. Under this program, excess energy produced by solar panels is sent back to the grid, and homeowners receive a credit on their electricity bill. The credit rate is typically lower than the retail rate of electricity but still provides financial benefits.
Local Utility Rebates
- Type: Rebate
- Details: Some local utilities in Arizona offer rebates for solar installations. These rebates are essentially cash back that is applied after the purchase of a solar system and before tax credits are calculated. The availability and amount of these rebates can vary by utility company.
City of Glendale Water Conservation Rebates
- Type: Rebate
- Details: While not directly related to solar energy, the City of Glendale offers rebates up to $1,000 for water-efficient installations. This can complement solar installations by promoting overall sustainability and reducing utility costs.
State and Federal Incentives
In addition to local and utility-specific incentives, Glendale residents can also take advantage of state and federal incentives:
Federal Solar Investment Tax Credit (ITC)
- Type: Tax Credit
- Details: The ITC provides a 30% tax credit for solar installations completed between January 1, 2022, and December 31, 2032. This credit will decrease to 26% in 2033 and 22% in 2034 before expiring in 2035.
Arizona Residential Solar Energy Tax Credit
- Type: Tax Credit
- Details: Arizona offers a state tax credit of 25% of the total system cost, up to $1,000. This credit can be applied to the state tax liability and can be carried over for up to five years if the credit exceeds the tax liability for the year of installation.
Solar Equipment Sales Tax Exemption
- Type: Tax Exemption
- Details: Solar systems in Arizona are exempt from sales tax, reducing the upfront cost of purchasing solar equipment.
Energy Equipment Property Tax Exemption
- Type: Tax Exemption
- Details: The value added to a home by a solar system is exempt from property tax, meaning homeowners do not face higher property taxes due to the installation of solar panels.
Frequently Asked Questions
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