Best Solar Companies in Arizona

Key Takeaways

• Arizona has some of the best solar potential in the U.S. due to abundant sunshine
• Solar panels can save the average Arizona homeowner $21,000 to $30,000+ over 25 years
• The payback period is around 7-9 years in Arizona, after which electricity is essentially free
• Arizona offers a 25% state tax credit up to $1,000 on top of the 30% federal tax credit
• Solar increases home value by an average of $17,000 in Arizona

Is It Worth Going Solar in Arizona?

Going solar in Arizona is generally considered a worthwhile investment due to several financial, environmental, and practical benefits. Here are the key reasons why you should consider installing solar panels in Arizona:

Electricity Bill Savings

• Significant Savings: Arizona’s high electricity bills, averaging $157.41 per month, mean that solar panels can lead to substantial savings. Homeowners can save as much as $1,888 annually on electricity bills.
• Payback Period: The typical payback period for solar panels in Arizona is around 10-12 years, after which the savings continue to accumulate. Over the 25-year lifespan of a solar system, the total savings can be substantial, often exceeding $19,000.

Tax Incentives and Credits

• Federal Solar Investment Tax Credit (ITC): This credit allows you to deduct 30% of the cost of your solar system from your federal taxes, significantly reducing the upfront cost.
• State Incentives: Arizona offers additional incentives such as the Residential Solar Energy Tax Credit, which covers 25% of the system cost, and exemptions from sales tax and property tax increases due to the added value of solar installations.

Increased Home Value

Property Value Boost: Homes with solar panels tend to sell for more than those without, as energy-efficient features are highly valued by buyers. This can make your home more attractive on the market and increase its resale value.

Reduced Carbon Footprint

• Clean Energy: Solar energy reduces reliance on fossil fuels, contributing to a cleaner environment by lowering carbon emissions and other pollutants.
• Sustainability: By using renewable energy, you help mitigate the effects of climate change and promote sustainable energy practices.

Abundant Sunshine

Optimal Conditions: Arizona receives an average of 300 sunny days per year, making it one of the best states for solar energy production. This abundance of sunlight ensures that solar panels can generate a significant amount of electricity.

Protection Against Rising Energy Costs

Energy Independence: Solar panels can protect you from rising utility rates by allowing you to generate your own electricity. This can help you lock in lower energy costs for the long term.

Net Billing Program

Excess Generation Credits: While Arizona has moved from net metering to net billing, you can still receive credits for excess energy sent back to the grid, albeit at a lower rate than the retail price of electricity. This can help offset future electricity costs.

How much does solar save homeowners in Arizona?

The savings homeowners in Arizona can expect from installing solar panels vary based on several factors, including the size of the system, local electricity rates, and available incentives.

Average Savings

1. Annual Savings: Homeowners in Arizona can save as much as $1,888 annually on their electricity bills by installing solar panels.
2. Lifetime Savings: Over the 25-year lifespan of a solar system, the average savings can amount to approximately $34,982]. Another source estimates lifetime savings to be around $23,000 to $24,000.
3. Payback Period: The typical payback period for solar panels in Arizona is around 10-12 years, after which the savings continue to accumulate.

Factors Influencing Savings

• Electricity Rates: Arizona’s high electricity bills, averaging $157.41 per month, contribute significantly to the potential savings from solar energy. The average monthly energy bill in Arizona is higher than the national average, which means greater potential for savings.
• System Size: The size of the solar system needed to offset energy consumption affects the total savings. Larger systems, which are often required due to high energy usage in Arizona, can lead to greater savings.
• Incentives: Federal and state incentives, such as the 30% federal solar investment tax credit (ITC) and the Residential Solar Energy Tax Credit, reduce the upfront cost of solar installations, enhancing overall savings.
• Solar Battery: Pairing solar panels with a battery can maximize savings by storing excess energy for use when panels aren’t producing electricity, allowing homeowners to get the full retail value of each kWh of solar energy produced.

Example Calculations

1. Cost Comparison: For a 6 kW system costing around $19,384 after federal incentives, the system can pay for itself in 7-9 years, with potential savings of $12,000 over 10 years compared to traditional energy costs.
2. Monthly Savings: A Prescott, AZ home can reduce its monthly bill from $130 to $29.50 using the net billing program, saving $101 per month.

What is the average cost of going solar in Arizona?

Cost per Watt: The average cost of solar panels in Arizona is approximately $2.64 per watt after applying the 30% federal tax credit. Another source mentions a slightly lower average cost of $2.46 per watt.

System Size and Cost:

• 6 kW System: The cost for a typical 6 kW solar system is around $11,071 after the federal tax credit. Another source lists the cost for a 6 kW system as $14,760.
• Range of Costs: The average cost of a solar panel system in Arizona ranges from $10,455 to $14,145. Another source provides a broader range, stating that the average Arizona resident will pay around $24,231 for a complete solar system after the federal tax credit.

City-Specific Costs: The cost of installing solar panels can vary by city within Arizona. For example:

• Phoenix: $14,800
• Tucson: $16,730
• Chandler: $15,060
• Paradise Valley: $29,050