Best Solar Companies in Phoenix

Is It Worth Going Solar in Phoenix, Arizona?

Based on the provided sources, going solar in Phoenix, Arizona, appears to be a highly beneficial investment for homeowners. Here are the key points that support this conclusion:

Cost Savings

• Electricity Bill Reduction: Homeowners in Tucson can significantly reduce their electricity bills by installing solar panels. The average monthly electricity bill in Arizona is around $120, and solar panels can offset a substantial portion of this cost.
• Long-Term Savings: The average homeowner in Tucson can save about $25,000 on their power bills over 20 years. This translates to significant long-term financial benefits.

Payback Period

• Payback Period: The payback period for solar installations in Tucson is approximately 8.1 years. After this period, homeowners can enjoy free electricity for the remaining lifespan of the solar panels, which typically last 25-30 years.

Incentives and Rebates

• Federal Solar Tax Credit: Homeowners can take advantage of the 30% federal solar tax credit, which significantly reduces the upfront cost of solar installations.
• State Incentives: Arizona offers a state solar tax credit of up to $1,000, as well as exemptions from state sales tax and property taxes on solar installations.
• Local Utility Rebates: Various local utility companies, such as Mohave Electric Cooperative and Trico Electric Cooperative, offer rebate programs that further reduce the cost of solar installations.
• Clean Energy Source: Solar energy is a clean, renewable source of power that reduces reliance on fossil fuels and lowers greenhouse gas emissions.
• Sustainability: By investing in solar energy, homeowners contribute to a more sustainable and environmentally friendly energy system.
• Improved Efficiency: Advances in solar technology have made solar panels more efficient and affordable. The cost of solar panels has decreased significantly, making it a more viable option for many homeowners.
• Battery Storage: The integration of battery storage with solar systems is becoming more common, allowing homeowners to store excess energy and use it during peak times or outages.

Solar Ready Initiatives

• Solar Ready Homes Ordinance: Phoenix has adopted initiatives to promote the installation of solar hot water and photovoltaic (PV) systems in new homes.
• Community Programs: Phoenix’s participation in solar programs has led to increased investments in solar energy and the development of large-scale solar installations on city buildings.

How Much Does Solar Save Homeowners in Phoenix, Arizona?

Homeowners in Phoenix, Arizona, can achieve significant savings by installing solar panels. Here are the key points regarding potential savings:

Annual and Lifetime Savings

1. Annual Savings: Homeowners in Phoenix can save approximately $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 homeowner in Phoenix can save about $25,000 on their power bills

Payback Period

• Payback Period: The payback period for solar installations in Phoenix is approximately 8.1 years

Cost of Solar Installation

1. System Costs: The typical cost for a 5 kW solar panel system in Phoenix is around $15,717 before incentives and $10,991 after applying the 30% Federal Investment Tax Credit (ITC)

Net Billing and Energy Storage

• Net Billing: Arizona follows a net billing system where homeowners are compensated for excess solar energy sent back to the grid at a rate lower than the retail price of electricity. This system still provides significant savings, though less than the previous net metering policy. For example, a Prescott, AZ home can reduce its monthly bill from $130 to $29.50 using the net billing program, saving $101 per month.
• Solar Batteries: Storing excess energy in solar batteries can maximize savings by allowing homeowners to use stored energy during peak times or outages, thus avoiding drawing power from the grid at higher rates

What is the average cost of going solar in Phoenix, Arizona?

The cost of installing solar panels in Phoenix, Arizona, can vary based on several factors, including the size of the system, the type of equipment used, and the specific installation conditions. Here are the key points regarding the average cost of going solar in Phoenix:

1. Cost per Watt: The average cost of solar panels in Phoenix is approximately $3.00 per watt before incentives
2. System Size and Total Cost: For a typical 5 kW solar panel system, the cost is around $15,717 before incentives and $10,991 after applying the 30% Federal Investment Tax Credit (ITC)
3. Cost by System Size: The cost of solar installations can vary based on the size of the system. Larger systems typically have a lower cost per watt due to bulk pricing but a higher total cost due to the number of panels required

• System Size: 4 kW
  • Avg Cost per Watt: $2.69
  • Avg System Cost (Before Tax Credit): $10,760
  • Avg System Cost (After Tax Credit): $7,533
• System Size: 5 kW
  • Avg Cost per Watt: $2.65
  • Avg System Cost (Before Tax Credit): $15,717
  • Avg System Cost (After Tax Credit): $10,991
• System Size: 6 kW
  • Avg Cost per Watt: $2.55
  • Avg System Cost (Before Tax Credit): $15,285
  • Avg System Cost (After Tax Credit): $10,699
• System Size: 7 kW
  • Avg Cost per Watt: $2.52
  • Avg System Cost (Before Tax Credit): $17,640
  • Avg System Cost (After Tax Credit): $12,369
• System Size: 8 kW
  • Avg Cost per Watt: $2.57
  • Avg System Cost (Before Tax Credit): $20,560
  • Avg System Cost (After Tax Credit): $14,374
• System Size: 9 kW
  • Avg Cost per Watt: $2.48
  • Avg System Cost (Before Tax Credit): $22,320
  • Avg System Cost (After Tax Credit): $15,610
• System Size: 10 kW
  • Avg Cost per Watt: $2.45
  • Avg System Cost (Before Tax Credit): $24,000
  • Avg System Cost (After Tax Credit): $17,156

Factors Influencing Cost

1. Equipment Quality: Higher quality panels and inverters may cost more but can offer better efficiency and longer warranties.
2. Installation Complexity: The complexity of the installation, including roof type and angle, can affect labor costs.
3. Local Incentives and Rebates: Various local utility companies, such as Mohave Electric Cooperative and Trico Electric Cooperative, offer rebate programs that can further reduce the cost of solar installations.