How Much Do Solar Panels Cost In Arizona

How Much Does A Solar System Cost

Arizona’s median solar system cost is $31,046 before any incentives. The price can vary depending on size, equipment, installation and other factors. Many federal, state and local incentives exist to reduce overall costs. Solar companies in Arizona offer customers many financing options, including cash payments, loans and leases. They will work with you to determine the best plan and financing option for your budget.

How Much Does A Solar System Cost In Arizona

The cost of an installed residential solar system in Arizona is about $2.64 per watt before incentives. After claiming the 30% federal solar tax credit, the price is only $1.85 per watt. This puts the average cost of a 6-kilowatt system at $15,840 before incentives and $11,100 after claiming incentives.

There is little variance in cost between Phoenix, Flagstaff, and Tucson, as most of the best solar companies have offices in each city.

Typical Costs Of Solar Providers In Arizona

Since there are over 130 solar companies in Arizona, choosing one that suits your needs and carries the equipment you want shouldnt be an issue. However, finding the best fit for your solar project and budget can still be challenging.

The chart below includes some of our top picks for the best solar installation companies in Arizona, plus comparative pricing to help you decide which of these you are likely to be able to afford.

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Solar Panel Lease Cost

A solar panel lease costs $100 per month on average, with most spending between $50 and $250 per month depending on their location and energy needs. Leasing solar panels is cost-effective and typically saves $50 to $100 per month on your electricity bills with little to no down payment.

Solar leasing companies are responsible for the installation and maintenance fees for the duration of your contract. If you decide to move, expect to pay additional charges to end your leasing agreement because transferring the lease to another buyer can be difficult.

If you own your solar system outright that generates 100% of your power, the monthly cost is less than $10 per month for minor grid-tied connection fees. An off-grid system has no monthly costs other than general maintenance.

Reduction In Energy Costs

Youll save between $650 to $1,500 annually. Over a 25-year period, youll save between $15,000 to $40,000 in energy costs. Cost ranges vary by regional differences in the cost of electricity and how much sun youll get. Dont expect to save as much in a darker northern climate as you would in southern California, Florida or Hawaii.

A great first step in determining which products are right for your home is to conduct a Home Energy Audit. A home auditor will do a detailed inspection of your usage and areas where you can improve to help you determine if you would benefit from a solar system. From there, a pro can help you to select the right location, size, mounts, and panels to maximize on savings.

Although you may hesitate to spend the money on the most expensive types of panels and mounts, it is good to remember that you will save money on the other side with decreased electricity bills. It could be that what you spend up front will pay for itself very quickly in your reduced monthly bills.

You can enhance your savings by selecting products with higher efficiencies and investing in track mounting. Track mounting will ensure that your system absorbs all the light it can, and high-quality panels will be able to capture and convert that light at a greater rate.

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How Does The Current Cost Of Solar In Arizona Compare To The National Average

As mentioned above, the average cost per watt for photovoltaic equipment in Arizona is around $2.61. This is just below the national average of $2.66, which means you get a bit more for your money in the Grand Canyon State.

However, the total price for solar power systems in Arizona hovers around $21,011 after the federal credit, which sits well above the national average of $16,758.

Youre likely to pay more for PV equipment in Arizona because the state has above-average energy needs, which demands a larger system to offset costs. Arizonans use an average of 1,048 kilowatt-hours per month, as compared to the U.S. average of 886 kWh.1 More energy usage means larger system requirements, which leads to higher solar conversion prices overall.

Get Multiple Quotes For Your System

Finally, we recommend getting multiple quotes for your solar electric system. According to the SEIA, Arizona is home to over 130 solar companies.6 Each of these providers charges different prices for their labor and materials.

We suggest getting a quotes from at least three solar installers in your area and comparing the estimates based on overall cost, quality of the equipment and warranty coverage.

Higher-efficiency and more durable monocrystalline panels can cost more than lower-quality polycrystalline panels, but theyre also often worth the added investment.

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Financing Your Arizona Solar Installation Project

Even though it might sound expensive to install solar panels and systems in Arizona, it will eventually pay off. If you are having financial constraints you can 100% funding, so it shouldnt be a problem.

You can get state tax credit federal tax credit and other incentives to finance your solar power project.

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Solar Panels Arizona Cost

Big savings are possible, up to 50% of the cost by installing the system yourself. You would need help with the permits, paper-work and get technical advice for coordinating grid connections.

Many people have installed their own solar power systems, but installation costs are going down all the time. Its often much easier and gives peace of mind to let a qualified solar installer carry the load.

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Frequently Asked Questions About The Cost Of Solar

Solar energy cost has plummeted in the past decade. The average cost of solar panels is less than half what it was ten years ago.

As of the time we updated this page , most solar panel prices fall in the range of 60 cents to 70 cents per watt. Premium panels can climb above $1 per watt depending on their size, quality, and where they are manufactured. Our solar panel calculator uses standard size panels to estimate the cost of your system.

Solar panel installation cost varies by provider. A turnkey solution will charge 100-200% the cost of equipment to perform the installation.

If your 6.6 kW system costs $10k in equipment, they may charge you $20k for the installation, bringing the grand total for the project to $30,000.

The other option is to buy direct from a distributor and either install it yourself or hire a local contractor to do it for you. If you choose the self-install solar panels, we have instructional videos and a brilliant tech support team to walk you through the project. Some people spend less than $1000 installing their own system .

Even if you hire a local contractor, theyll charge you somewhere between 75 cents and $1.25 per watt. Theyd install the system above for around $6000-$7000, which is less than half the amount youd pay to a turnkey installer.

Thats why youre here! Our solar power calculator takes the information you provide about your energy usage patterns and returns our best guess about how much solar energy you might need to generate.

Are Solar Panels Worth It In Arizona

Yes, solar panels are absolutely worth it in Arizona. Solar panels can increase your home value by 2-3% in AZ, save you up to 100% on electricity, and more! Arizona has more sunny days than any other state and the federal government will take care of 30% of the cost. Learn more about why solar panels are worth it in Arizona.

Solar-Estimate says, Arizona has some of the best potential for solar in the United States. The state receives more sun than any other area in the nation, meaning a solar system can produce about 180% more than what it does in places like New York.

Solar panels can increase your homes value up to 2%-3% in Arizona. On the other hand, choosing to lease solar panels will decrease your homes value. A leased solar system can lower a homes value by 3%-8% in Phoenix, Arizona. According to AZCentral, Panels that are owned add some value to the resaleThe panels add value in proportion to the amount of money they are expected to save on utilities through the remainder of their warranty. For example, if there are 15 years left on the warranty and the panels save $80 a month in electricity, the system could add $14,000 to a home appraisal.

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Consider A Solar Battery

A solar battery is an add-on system that helps your solar system store excess power. Solar batteries enable your solar system to function off stored power in low-light conditions, extending the functionality of your system. When you shop for a solar installer, you may be able to negotiate a lower rate on a solar battery as a part of your installation package.

How Much Money Do Solar Panels Save

How much money solar panels will save you depends on your local electricity rates, how much energy you use, your solar systems size, and the amount of sunlight your panels receive throughout the year.

The following table breaks down how much you can expect to save per day, month, and year, assuming an average energy consumption of 886 kWh and an average cost of electricity of 13.7 cents per kWh.

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How Much Do Solar Panels Cost In Arizona

The average Arizona resident will pay around $21,011 for a complete solar system after the federal solar investment tax credit is considered. Before the credit is applied and without the local sales tax exemption, youre looking at an average total of $30,015.

These prices assume you would need an 11.5 kilowatt system the typical size required to offset utility costs in Arizona and pay the average local price per watt of $2.61.

The size system youll need is one of the most crucial factors that affect your pricing. But it can be challenging to estimate exactly the size youll need without having a professional solar installer provide a free quote.

Taking Out A Solar Loan

If paying $30,000 in cash for your panels is not a realistic option, a solar loan may offer a more affordable way to obtain your solar system. Solar loans are financing deals made specifically for PV equipment, and the options available make going solar far more accessible, especially in Arizona, where system totals are above average. Plus, the required down payment is often $0.

Just like other loans, this payment method will lead to higher overall costs because youll be paying the principle of the loan plus interest. This also means your panel payback timeline will be a bit longer, and your overall savings will be around $5,000 lower than with a cash purchase.

Loan approval will require your financier to run a credit check, so loans also require that you have at least decent credit.

The good news is that many customers who opt for a loan see their monthly energy expenditure drop or remain the same. Many lenders can structure your deal so that your monthly payment is at or below what you currently pay for electricity around $131.35 in Arizona.

Below are some of the most compelling upsides and downsides to using a loan to finance your solar system in Arizona.

Pros of a Solar Loan in Arizona

• Significantly lower upfront costs than cash purchases
• You can take advantage of all solar incentives in Arizona
• Leads to panel ownership
• Makes solar far more accessible

Cons of a Solar Loan in Arizona

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Should You Lease Solar Panels

There are several payment options that bundle solar installation costs into a consumers electric bill, either as a solar panel leasing option or as a power purchase agreement . Solar leases allow the homeowner to install solar panels without paying anything up front reducing the overall solar panel cost. After the panels are installed, the homeowner pays only a flat monthly fee. The fee includes the installation costs, which are spread out over time, and the cost of electricity supply.

Cash Purchase Of Solar System

Using cash to buy your solar PV system is the best option from a purely financial perspective. Paying upfront means you wont add interest to your total payment, which means your long-term costs will be the lowest. In other words, paying with cash also means youll see the shortest payback timeline and the greatest overall energy savings.

Using cash also lets you take advantage of all the available incentives for solar equipment in Arizona, including the federal credit. This isnt the case for all payment options.

Of course, buying your solar panel system with cash requires that you have the full amount upfront, which may be unrealistic for Arizona property owners. Keep in mind that the full amount $30,015 on average does not consider the federal tax credit. You can recuperate some of that money on your tax bill, but not until you file taxes for the year you install your system.

Using cash to buy your panels will, however, lead to instant savings on your monthly expenditure. Most customers can offset clost to their entire utility bills, which means you could go from paying the local average monthly electric bill of $131.35 to paying almost nothing.5

Below are some of the pros and cons of choosing a cash purchase to acquire your PV system in Arizona.

Pros of a Cash Purchase in Arizona

Cons of a Cash Purchase in Arizona

• Requires that you have the full amount in cash upfront

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Whats The Cost Of Solar Panels In Arizona In 2022

Arizona is one of the sunniest states in the U.S and has shown some of the most impressive growth in solar installations in the country. So, if you live there and want to go solar, theres a good chance you might be wondering, what are the cost of solar panels in Arizona?

Spoiler alert: the cost of an installed residential system in Arizona is about $2.53 per watt. Lower than the average price across the U.S! More good news is that solar panels in Arizona have an excellent energy output, about 70% more power than in states such as New York. So, you know for sure youll have enough energy for your home appliances!

Keep reading this article to find more information about Arizonas solar panel pricing.

How Many Solar Panels Does A Home Need

Solar systems are usually sized in kW, not the number of panels. Your solar installer will discuss system sizing with you during your free quote, so dont worry about working out your system size. Ultimately, the solar company you work with will help you choose the right size system for your home to meet its energy needs.

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Solar Incentives Tax Credits And Rebates

Residential Solar and Wind Energy Systems Tax CreditThis tax credit benefits Arizona residents who install a solar or wind energy device at their state residence. The credit is worth 25% of their cost of solar installation against the taxpayers income tax, with a $1,000 maximum allowable limit. You must claim the credit in the same year your system was purchased.

Solar Equipment Sales Tax ExemptionThis tax exemption means you are relieved from paying sales tax on your solar energy system. The solar devices covered in this exemption include passive solar heating, active solar space heating, solar water heating, and solar photovoltaics.

Federal Solar Tax CreditThis federal incentive lets you claim 26% of the cost of your new systems installation as a credit on your federal tax return. This generous tax credit will be available for a limited time- the credit amount will drop down to 22% in 2023 and continue to decrease until it is completely phased in 2024.

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Solar Panel Financing And Incentives

Solar panel system providers know that most homeowners dont have immediate access to more than $20,000 up-front in cash. You can now cover your solar panel installation through various financing options, breaking down one large payment into smaller, more manageable chunks.

You can also take advantage of two primary types of solar incentives as a homeowner: federal and state. The federal solar investment tax credit is available to all homeowners living in the United States, no matter where theyre located. A homeowner in Florida will have the same federal tax incentives as a homeowner in California, regardless of local laws.

Individual state credits are only available to residents of the state issuing them. State tax incentives and other solar credits may change regularly, so read up on your states current incentives before you begin calculating the cost of your solar panel system investment.

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