How Much Does Solar Cost In Arizona

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.

Solar Panel Increase Your Home Value In Arizona

Installing solar panels can increase your home value in Arizona by 2%-3%. Homebuyers are willing to pay more for homes with Solar Panels installed on it according to Berkeley Lab . This means AZ homebuyers are willing to pay an average of $15,000 more for a home that has received solar panel installation.

Cash Purchase: Your Most Cost

Whats the real story?

A cash purchase always delivers the largest, most immediate savings. With no loan payments, you realize 100% of the energy savings immediately, along with the 30% federal tax credit.

Considering an average purchase price of $17,500 for a 5kW system, you will receive a federal tax credit of $5,250 . That means your first-year investment is only around $12,250!

Your energy savings the first year should be around $1,040. Taking into account the inflation of energy costs, your system should pay for itself in around 10 years. And by year 25, you should see a net profit of around $30,000!

Not a bad return. And remember that you are helping to provide well-paying local jobs and to save the environment.

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Arizona Solar Panel Installation Costs 2021

Are you an Arizona resident ready to learn more about the cost of solar panels? Youre in luck- Arizona is one of the sunniest places in the U.S., and many residents have already used this to their advantage by making the switch to clean solar power.

According to data from 2020, a 5 kilowatt solar installation in Arizona averages between $12,495 and $16,905 in cost, with an average gross price of $14,700. After considering the money-saving incentives and tax credits available, the cost will drop significantly. Read on to learn about the costs and benefits of going solar power in the Grand Canyon State!

Cost Of Diy Solar Panels

The cost of DIY solar panels runs $2,000 to $20,000 for a kit ranging from 2kW to 10kW. These kits include everything you need to install your own solar array. However, you may even look to building your own panels.

The costs to make your own system and build it from scratch is going to vary quite a lot depending on you level of skill. Its a highly technical and specialized field. If you have a high level of electrical skills, you may be toying with the idea of building your own solar panels. The cost of solar cells and the silicon wafers used to create them are available to purchase individually. To build your own, you would typically put 60 of these wafers onto a backing and wire each of them. You would then need to connect this to an inverter.

Consider, however, that there are several risks associated with building your own, including:

• You can’t be sure of the quality of solar cells purchased.
• Homemade panels are often a fire hazard.
• Many tax credits and incentives will not apply when systems are constructed outside of approved facilities.

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Arizona Personal Tax Credit

This is a state program where homeowners can deduct 25 percent of the cost of their solar system. The official policy is the credit is allowed against the taxpayer’s personal income tax in the amount of 25 percent of the cost of a solar or wind energy device, with a $1,000 maximum allowable limit, regardless of the number of energy devices installed. The credit is claimed in the year of installation. Even though it has a $1,000 limit, it is still a good program that helps homeowners in the state.

Arizonas Renewable Portfolio Standard Guidelines: Government Incentives To Help You Save Even More

A states Renewable Portfolio Standard is a plan based on legislation or regulations. It outlines goals and targets for the production of renewable energy in that state. The RPS is the tool that encourages power companies to supply renewable energy, rather than using fossil fuels.

Though there are some states with stronger RPS guidelines, Arizona is pretty strong. It has a mandate that by 2025, almost 15% of electricity must be generated by renewables. This means that you can most likely use your state to help you save even more on solar panels. This includes tax incentives, rebates, and even selling your extra energy back to the gridsometimes for a profit!

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Is The Home Efficient

It makes little sense to add solar panels to a home that has leaky air ducts, poor insulation, 70-year-old windows or other inefficient features. Often those repairs and upgrades are less expensive and more cost-effective than adding solar.

Also, a home that is energy-efficient will require fewer solar panels to offset a significant portion of its energy needs.

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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Arizona Solar Panel Incentives Or Rebates

Federal, state, and local governments have taken plenty of steps to incentivize homeowners to invest in solar power and aim to help reduce the cost burden that comes with it. These incentives can reduce your total costs in both the short term and the long term.

Theres a tax credit at the federal level where homeowners who install solar panels on a primary or secondary residence can claim a 22 percent tax credit. Theres no cap on the amount you can claim, but the tax credit could expire in the coming years unless it is extended. So, if youve been considering purchasing a solar system, now is the time to take full advantage of the federal tax credit.

Arizona residents are also eligible for savings at the state level. The Residential Arizona Solar Tax Credit reimburses homeowners 25 percent of the cost of their solar panels up to $1,000. Solar purchases are also exempt from sales and property taxes. You wont pay sales taxes on your purchase, and you wont pay additional property taxes for value-added to your home.

Estimated Solar Energy System Costs Per Watt

Although the per-watt price of installing solar ranges from $2.50 to $3.50, it varies regionally You’ll see the greatest difference between the Southern and New England regions. This does not necessarily mean that it is less cost-effective in New England as opposed to other regions. Different states, even different counties, will have varying returns on investment dependent on other factors.

These factors include:

• Average electricity bills.
• Amount of sunshine expected per day.

Below you will find the average rates of having your system professionally installed, according to region and wattage. These figures do not include any tax credits or incentives. Consider that the average size is 5kW. Hawaii, included in the Western region, has a high rate per watt at $2.85 on average. Georgia, in the Southern region, has a lower rate at $2.53 on average.

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The History Of Solar Power In Arizona

Solar power in Arizona dates back to 1997 when the states first commercial solar power system was installed in Flagstaff. Just a few years later, in 2000, the state government began laying the groundwork for expanding solar generation by implementing regulatory policies, as well as the Solar Equipment Sales Tax Exemption.

Solar power continued to grow in Arizona, reaching another important milestone in 2006 when the Arizona Corporation Commission increased its renewable energy standard to 15 percent by 2025.

Today Arizona is a national leader in green energy. Its ranked fifth in the nation for solar energy generation, producing 558k megawatt-hours and 6.5 percent of solar power in the country. Arizona has seen drastic increases over the past decade in both residential and utility solar installations.

Why Solar Panel Cost Should Not Be Your Only Consideration When Buying Solar Panels For Your Home

The most important difference between buying solar panels and any other purchase is that solar panels last 25-30 years. This is a long, long time and you will need customer service over all that time. The reviews below of the two largest corporate solar installation companies indicate larger corporate solar companies are not delivering this support to their customers.

We recommend you find a small or mid-size, local, family-owned solar company. These companies tend to care more about you and your specific job. You don’t want to be on hold to a corporation’s call center for the next 25 years!

People also ask:

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Arizona Solar Costs Frequently Asked Questions

• How much does it cost to install solar panels in Arizona?
• Is solar in Arizona worth it?
• Does Arizona have a solar tax credit?
• How long does it take for solar panels to pay for themselves?
• How much value do solar panels add to my home?
• Is it better to lease or buy solar?
• Do solar panels increase home insurance costs?
• Will I still have an electric bill with solar?

Solar Panel Cost Arizona: Prices & Data October 2021

As of Oct 2021, the average cost of solar panels in Arizona is$2.64 per watt making a typical 6000 watt solar system$11,704 after claiming the 26% federal solar tax credit now available.

This is lower than the average price of residential solar power systems across the United States which is currently $3.00 per watt.

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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

If you are wondering whether solar panels are worth the investment for your commercial property, the answer is a resounding yes! Solar panels can offset electricity costs by upwards of 75% per month. Additionally, business owners can deduct up to 85% of the system cost from their taxes.

Here is a look at a few of the benefits of solar panels:

• Reduces electricity costs
• Power costs will be locked in for years to come
• Huge tax rebates for businesses
• Can be financed with no money down and/or low monthly payments

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Type Of Solar Panel Systems

The type of solar panel system you chose will greatly affect the cost. Grid-tie, grid-tie solar and energy storage, and off-grid solar are all options differ in price. Remember, the best solar panels for your property will fulfill your needs and meet your price point.

Lets break down the primary purpose of each system:

• Grid-tie: You have access to the utility grid. Your primary goal is to save money on your electric bill
• Grid-tie solar and energy storage: You have access to the utility grid and your primary goal is to have backup power when there is an outage.
• Off-grid: You do not have access to the utility grid. Your primary goal is to live where it is not accessible.

Once you identify your goals, you can make a final decision based on price.

If you have access to the grid, you can lower the cost of solar panels by using a grid-tie system. When you choose a grid-tie system with energy storage, you have the potential to save even more. Storing electricity in the grid doesnt cost anything, and you may be able to sell your stored energy . An off-grid system is a significant extra cost.

With an off-grid system, youll need to purchase batteries which represent almost half the cost of an off-grid solar system.

If you have the option, we recommend connecting a grid-tied system. However, off-grid solar will still save you money in the long run if you want to live away from a utility grid.

Browse our grid-tie solar kits and off-grid solar systems for up-to-date pricing.

Can I Get Free Solar Panel Installation In Arizona

Yes, the APS and SRPs programs will install solar panels on your roof for free. However, the APS communities are mainly for low-income homeowners who want an extra $30 at the end of the month. All they do is consent to solar panel installation on their rooftops.

So, APS savings wont make a good investment for a lot of people because it earns you just about $7,200 in a lifetime.

Purchasing your system is the best way to get returns. First, you pay off the installation costs for the first seven years or so. Then, the next 18 years of the solar systems lifespan will be yours to have free electricity. That saves you over $25,000!

If you are a nonprofit, you can check whether you qualify for the SRP. This program seeks to provide installations for nonprofit organizations.

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Understand The Rate Plans

Some solar companies might advertise energy independence as a reason to install solar panels, but the vast majority of people who install solar are still connected to the utility grid.

That means they still rely on a traditional electric company to provide power at night and when their panels aren’t making enough electricity to serve all the home’s appliances.

How an electric company charges customers makes a huge difference in how much they can save with solar.

Companies installing solar on homes should understand utility rate plans and help homeowners choose the appropriate plan from their utility based on how much power the solar panels will generate and how much electricity homeowners use.

For example, solar customers in the territory of Salt River Project are required to go on a “demand rate” that sets one portion of the bill based on the highest use of electricity during the month. Even if customers generate a lot of their electricity themselves with solar panels, they can pay a high bill if they set high demand during certain hours of the month.

American Solar and Roofing encourages customers to use a device that allows them to monitor the instantaneous demand of their home, allowing them to avoid setting a high demand fee for the month.

How Much Do Solar Panels Cost

These are a few main factors that will determine exactly how much it will cost to install solar panels on your home:

• Your homes average utility costs and energy usage
• Your rooftops solar potential, or the amount of sun it receives yearly
• The average local cost for a solar panel system in your area
• The average labor costs and demand in your area
• Local incentives and rebates you could receive

Keep in mind that the cost to install solar panels varies from state to state. However, according to the Department of Energy, the cost to install solar panels is dropping nationally year over year due to new solar energy initiatives.

Solar costs dropped dramatically in the last few years, when the Chinese government influenced the worldwide solar market by pouring low-cost financing into the sector, which boosted solar panel manufacturing more than ten-fold. The DOEs goal is to cut solar installation costs by half by 2030, which means now is the time to invest.

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