Find out if solar panels are right for your home in Arizona.
Arizona ranks as the 5th largest state for solar energy production in the United States. The state boasts an impressive array of both large-scale solar farms and smaller residential and commercial installations. The Aqua Client Solar Project stands as a testament to the scalability and efficiency of solar power. While promises of reduced electricity costs, tax incentives, and sustainable living drive an increasing number of residential and commercial buildings to install solar systems.
While solar power and other renewable energy options are booming in popularity, there is much to consider. Whether you are trying to reduce your carbon footprint or your utility bills we’ll walk you through the most important factors to help you make the best energy decision.
The average price for a home solar panel system in Arizona is $15,120 for a 6kW system or about or about per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.
| Average Cost 6 kW System | Average Cost 10 kW System | Estimated Tax Credit (10 kW System) | Average Cost/Watt | |
|---|---|---|---|---|
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Arizona | $15,120 | $25,200 | $7,560 | $2.52 |
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Most Costly State(Michigan) | $22,680 | $37,800 | $11,340 | $3.78 |
| Least Costly State(Arizona) | $14,640 | $24,400 | $7,320 | $2.44 |
For many Arizonans, the perfect solar system size balances cost and capacity. Given Arizona's sun-rich environment, the aim is to produce enough electricity to meet your home's needs while ensuring costs remain as low as possible. In essence, maximize value for your investment in the Grand Canyon State.
| System Size | System Cost | Cost After Federal Tax Credit |
|---|---|---|
| 5 kW | $12,600 | $8,785 |
| 6 kW | $15,120 | $10,542 |
| 7 kW | $17,640 | $12,299 |
| 8 kW | $20,160 | $14,056 |
| 10 kW | $25,200 | $17,570 |
Even in the sun-drenched state of Arizona, solar isn't without its drawbacks. Before taking the leap, it's essential to consider both the advantages and challenges tied to installing solar panels on your Arizona home. By comparing these factors, you can better determine if solar aligns with your needs. Understandably, Arizonans might have varied views on evaluating these pros and cons. Our intention is to highlight the most prevalent points, allowing you to arrive at a well-informed decision tailored to your situation.
Arizona has an ideal climate for solar panels. Plenty of sunlight during peak energy usage seasons and high electricity costs lean to high savings available.
Most homes in Arizona will experience a payback of 5 to 8 years. While other states with lower electricity costs and sun experience 25 year payback periods. Additionally, if you prioritize energy independence and renewable energy, the benefits rack up.
If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.
There are several ways you can purchase and/or finance your solar panel installation in Arizona. Your goals and financial situation will dictate which option is best for you.
The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.
The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.
This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."
Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.
Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.
Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:
Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.
A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.
For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.
Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.
Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.
Arizona offers a variety of incentives to encourage the adoption of solar energy, making it one of the most attractive states for solar installation. One of the most significant incentives is the Arizona State Tax Credit, which provides a 25% credit on the cost of solar panels up to $1,000/ This can be claimed against the homeowner’s income tax in the year of installation. This incentive is available to both residential and commercial properties.
An additional 30% Federal Solar Tax Credit may be applied for solar incentives that could significantly reduce the cost of solar panel installation.
Net Metering is another major incentive in Arizona, although the specifics can vary between different utility companies. In general, net metering allows solar panel owners to sell excess power back to the grid, effectively earning credit towards their utility bill. While the rate paid for this excess energy has been subject to some changes and controversy, the program still offers a valuable opportunity to offset costs of solar energy systems.
Your city, utility, or other local company could offer hundreds or thousands of dollars in incentives to install solar systems.
This table shows the available incentives in Arizona. But, just because you don't see it here doesn't mean it doesn't exist. Check with your local utility for other potential incentives.
| Name | State | Category | Type |
|---|---|---|---|
| Qualifying Wood Stove Deduction | AZ | Financial Incentive | Personal Tax Deduction |
| SRP - Solar Water Heating Program | AZ | Financial Incentive | Rebate Program |
| City of Tucson - Solar Dividend | AZ | Regulatory Policy | Other Policy |
| Residential Solar and Wind Energy Systems Tax Credit | AZ | Financial Incentive | Personal Tax Credit |
| Solar and Wind Equipment Sales Tax Exemption | AZ | Financial Incentive | Sales Tax Incentive |
| Revolving Energy Loans for Arizona (RELA) Program | AZ | Financial Incentive | Loan Program |
| Sulphur Springs Valley EC - SunWatts Rebate Program | AZ | Financial Incentive | Rebate Program |
| Solar Contractor Licensing | AZ | Regulatory Policy | Solar/Wind Contractor Licensing |
| TEP - Net Metering | AZ | Regulatory Policy | Net Metering |
| Mandatory Photovoltaic System Cost Analysis | AZ | Regulatory Policy | Line Extension Analysis |
There are hundreds of solar companies in Arizona. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.
To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.
The solar companies we partner with:
We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.
Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.
Arizona stands as a national forerunner in harnessing solar energy, particularly in the residential sector. Although it ranks fifth nationally for overall solar energy production, it vaults to an impressive third place for residential solar energy generation. Hot on the heels of New York, which contributes to 6.1% of the country’s total residential solar output, Arizona supplies a notable 5.9%, showcasing a robust growth trend. Demonstrating its commitment to a sustainable future, Arizona has set a practice target to derive 15% of its energy from renewable resources by 2025, promising to strengthen its position as a renewable energy powerhouse.
We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.
Now using the same one-of-kind technology and platform we are helping consumers in Arizona decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.
We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.
The cost of solar panel installation in Arizona can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.
A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in Arizona is $14,640 for a 6kW system or about or about $2.44 per watt.
The number of solar panels you would need depends on a variety of factors such as:
To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.
The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.
Your installer should be able to give you an estimated timeline based on your specific project.
Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly and to clean off any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.
There are two types of solar panels in the solar market: Monocrystalline and Polycrystalline. There are advantages and drawbacks to both. Either type can produce enough solar power for your home. It is advisable to seek expert advice from a solar installer specific to your home. They can recommend the most efficient solar panels tailored to your budget, location, and other relevant factors.
Obtaining a residential permit for solar installation in Arizona is an essential step for those wishing to take advantage of the state's abundant sunshine. The process might differ slightly depending on the local jurisdiction, but generally, homeowners must submit a permit application that includes detailed site plans and specifications for the solar system to the local building department.
Arizona has made efforts to standardize and simplify the permitting process across various municipalities, making it more accessible to residents. For precise guidelines, homeowners should reach out to their specific city or county building department. Additionally, resources like the Arizona Solar Center provide valuable information on solar permitting, incentives, and regulations in the state. Many solar installation companies operating in Arizona also offer assistance in navigating the local permitting requirements, aiding homeowners in a smooth transition towards clean, renewable energy.
Check out the links below for resources for some of the major cities:
SolarAPP Pilot Program for Permit Process
Residential Solar Permit Process
City of Mesa Solar Program 2023-2024
