In the sun-drenched expanse of Arizona, the decision to install Solar Panels is more than just an environmental choice—it’s a financial and lifestyle decision. With the relentless Arizona sun as your ally, transitioning to solar power can offer significant energy savings and a reduced carbon footprint. However, before you embark on this eco-conscious journey, it’s crucial to navigate the unique considerations and opportunities that arise when harnessing the power of the sun in the Grand Canyon State.
Also, Arizona’s perpetual sunshine continues to make rooftop solar panels an enticing proposition for homeowners. Already, thousands of homeowners in Arizona are using solar panels to generate electricity for their homes.
Moreover, the number of sunny days in Arizona is more than any other state. Arizona is the second sunniest state in the United States. Furthermore, Arizona constantly ranks at the top in converting sunlight into solar energy. Not only this but the federal tax credit of 30 percent is also applicable on the cost of your solar system. However, the cost has decreased by 40 percent across the board. In the same way, many utility companies have rebate schemes for promoting the installation of solar panels in Arizona.
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Important Points To Remember:
- Arizona has approximately 300 sunny days per year, hence becoming the sunniest city in the United States.
- Homeowners can claim a 30% credit on the total cost of their solar panel system through the Federal Solar Tax Credit (ITC).
- Arizona has a net billing instead of a net metering program. It was replaced in December 2016. Net billing is also known as feed-in tariffs.
- On a national scale, homes with solar-energy systems tend to sell for an average of 4.1% more than homes lacking solar panel systems.
- Arizona homeowners who make the smart choice to install solar panels can expect to save a substantial $25,000 over a span of 20 years.
What is in this article?
- Why Going Solar is Worth It in Arizona?
- Do Solar Panels in Arizona Increase Home Value?
- Are there Any Local Incentives for installing Solar Panels in Arizona?
- Does Net Metering available for Solar Panels in Arizona?
- How can Arizona Residents Enroll in the Net Billing Program?
- Cost of Solar Panels in Arizona
- What are Solar Access Laws in Arizona?
- How Much Can You Save With Solar Panels in Arizona?
- How Much Power Do You Need for your Home in Arizona?
- Factors to Consider Before Installing Solar Panels in Arizona
- Is Investing in Solar Energy Worthwhile in Arizona?
Why Going Solar Worth It in Arizona?
Arizona has approximately 300 sunny days per year, hence becoming the sunniest city in the United States. This abundant sunshine is advantageous for those considering solar energy systems, as it ensures the efficient production of clean solar power. However, to get a more precise estimate of the sunlight in your area, you need to calculate its peak sun hours.
One significant benefit of installing solar panels in Arizona is that you can save money on your electricity bills, especially during hot summer months when cooling your home may lead to high electricity costs. You have the option to either reduce your home’s electricity consumption or invest in solar panels. Consulting with a solar specialist can help you determine your energy usage and suggest a solar energy system that aligns with your cost-saving goals.
Also, Arizona offers various solar incentives and tax credits, making solar panels more accessible and cost-effective for homeowners. These incentives include:
Federal Solar Tax Credit:
Homeowners can claim a 30% credit on the total cost of their solar panel system through the Federal Solar Tax Credit (ITC).
Residential Arizona Solar Tax Credit:
You may be eligible to receive a state income tax credit equivalent to 25% of your solar panel system’s cost, up to a maximum of $1,000, in the year of installation.
Solar Equipment Sales Tax Exemption:
Solar energy systems, including solar batteries, are exempt from sales tax in Arizona.
Energy Equipment Property Tax Exemption:
Installing solar panels in Arizona allows you to increase your home’s value without incurring additional property tax burdens.
Do Solar Panels in Arizona Increase Home Value?
Installing solar panels in a home offers multiple advantages, including saving on energy expenses, contributing to environmental sustainability, and increasing the property’s market value. On a national scale, homes with solar-energy systems tend to sell for an average of 4.1% more than homes without solar panel systems. For a home with a median value, solar panels can increase $9,274 in its selling price. Not only this but these homes also sell faster in the market as well. This is because energy-efficient features are important for more than 80% of home buyers.
Are there any Local Incentives Homeowners Installing Solar Panels in Arizona?
Arizona state offers local incentives for its residents. These incentives help the residents switch to solar energy with ease. Currently, Arizona ranks fourth among the solar-powered states.
Some of the incentives in Arizona include:
APS Residential Battery Pilot Program:
The residents of Arizona can receive up to $3,750 in incentives when they purchase a home solar battery. It is mandatory to enroll in APS’ Residential Battery Pilot program to avail of these incentives.
SunWatts Renewable Energy Incentive Program:
Arizona’s residents can also gain access to the incentive of five cents per watt (or up to $2,500) for residential and small commercial solar panel systems less than 50 kW in size.
Mohave Electric Cooperative (MEC) Battery Rebate:
MEC offers a solar battery system rebate of up to $500 for the residents of Arizona.
Springs Valley Electric Cooperative Solar Water Heating Program:
If you qualify for solar water heaters, you can get a rebate of 50 cents per annual kWh.
Salt River Project Demand Management System Rebate:
Arizona residents can get a $250 rebate on the purchase and installation of a demand management solar panel system.
Moreover, most Arizona utilities offer rebates for energy-efficiency home upgrades as well. This includes HVAC systems, home energy audits, windows, and much more.
Does Net Metering works in Arizona?
Arizona has a net billing instead of a net metering program. It was replaced in December 2016. Net billing is also known as feed-in tariffs.
Net billing is a system in which the utility company credits the customer for any surplus energy generated by their solar panels that is sent back to the grid. However, the key distinction between net billing and net metering is in the calculation of the credits. With net billing, the utility company is not obligated to provide credits equivalent to the full retail rate of energy. Instead, they have the flexibility to determine a lower credit rate, which is at their discretion. Nevertheless, these credits accumulate and can be applied to your future electricity bills, particularly when you need to get power from the grid during nighttime, winter, or times when your solar panels may not produce sufficient energy.
Moreover, The credits you earn through net billing have no expiration date. Once they surpass a specific threshold, usually falling between $10 and $25, as determined by your utility provider, they are paid out annually. The companies calculate these credits on the basis of excess energy your solar panels produce and are compensated at export rates that vary depending on your utility company, typically ranging between 7.81 and 10.45 cents per kilowatt-hour (kWh).
How can Arizona Residents Enroll in the Net Billing Program?
Enrolling in net billing for your solar system typically involves several steps, which your solar installer will assist you with. Here are few things that you need to keep in mind.
- After the installation of your solar system, you’ll need to submit an application for interconnection through your utility company.
- Upon approval of your interconnection application, you’ll proceed to sign a net billing agreement that outlines the terms and conditions of the arrangement.
- To monitor both the energy you consume from the grid and the excess energy you supply to it, your solar technician will install a bi-directional meter.
- Once your solar panels are up and running, you can commence accumulating credits through Arizona’s net billing program.
Cost of Solar Panels in Arizona
The cost of solar panels in Arizona depends on multiple factors. These factors may include the cost of labor, local permits, components of the system, system configuration, and system size. According to an estimation an average resident of Arizona pays about $3 to $5 per watt for a residential solar energy unit.
Moreover, an average five-kilowatt solar panel system in Arizona costs between $15,000 and $25,000. Remember that! you will also receive a 30 % federal tax credit on this amount along with the local incentives. This will further bring down the cost of solar panels in Arizona. The limit to receive the federal investment tax credit is 2034. So, if you are planning to install solar panels there is no better time than now.
What are Solar Access Laws in Arizona?
Arizona is a prime location for installing solar energy systems due to its supportive legal framework. The state’s solar access laws are designed to safeguard the rights of homeowners who wish to adopt clean energy solutions. These laws have two key provisions:
- They ensure that homeowners have the freedom to utilize solar energy on their private properties by nullifying any local agreements, limitations, or conditions associated with property deeds that might hinder solar energy use.
- Homeowners’ associations (HOAs) are prohibited from imposing bans on the installation of solar panels, ensuring that residents have the liberty to harness solar power without unnecessary obstacles or restrictions.
These laws eliminate potential barriers and bureaucratic hurdles that can sometimes hinder the adoption of solar energy in other regions, making Arizona an attractive choice for solar installation.
How Much Can You Save With Solar Panels in Arizona?
When it comes to savings, the potential benefits of going solar are substantial. Apart from the tax savings, there’s the possibility of reducing your electricity bill by as much as 99%.
Also, while such savings may initially seem hard to believe, the reality in Arizona is quite compelling. With nearly 300 sunny days annually and a robust solar system, households equipped with solar panels typically enjoy an average monthly electricity bill of around $35.
Furthermore, Arizona homeowners who make the smart choice to install solar panels can expect to save a substantial $25,000 over a span of 20 years. What’s more, their property’s overall value may also increase, thanks to the utilization of renewable energy.
How Much Power Do You Need for your Home in Arizona?
Determining your power needs depends on your household size and its electricity consumption patterns. On average, a 2,500-square-foot home consumes approximately 12,800 kilowatt-hours (kWh) of electricity annually. To meet these demands, a 7.3 kilowatt (kW) solar system is generally required.
Factors You Need to Consider Before Installing Solar Panels in Arizona
Arizona, being the sunniest state in the U.S., offers its residents an excellent opportunity to harness solar energy.
However, before committing to solar panel installation in Arizona, it’s crucial to conduct a thorough evaluation of your property and calculate the potential return on investment. Here are some factors:
Your Home’s Energy Consumption:
The size of your solar energy system is primarily determined by your average monthly energy usage. Higher energy consumption necessitates more solar panels, which might entail a higher initial cost. Nonetheless, it also translates into more savings on your monthly electricity bills. Conversely, if your energy usage is relatively low, the financial benefits of switching to solar energy may be less pronounced.
As a rule of thumb, households consuming less than 500 kWh per month might not experience a significant return on investment with solar panels. However, for those with higher energy consumption exceeding this threshold, adopting solar power becomes a more financially rewarding choice. Given that the average Arizona home consumes around 1,114 kWh per month, most residents can expect advantages from installing solar energy.
So, reviewing your past utility bills can help you gauge your historical energy usage and assess where you stand in terms of consumption.
Cost of Solar Adoption in Arizona:
Consider the expenses associated with installing a solar power system, including solar panels, inverters, mounting equipment, installation labor, and any additional fees. It’s crucial to obtain quotes from reputable solar providers to compare costs and explore available financing options.
Average Payback Period in Arizona:
The payback period is the duration required for the savings on your electricity bills to offset the initial investment in solar panels. A shorter payback period typically indicates a more favorable return on investment.
Average Buy-back Rates in Arizona:
In certain situations, surplus solar energy can be sold back to the grid, generating income for homeowners. Understanding the buy-back rates and policies of your local utility company can significantly influence the overall financial benefits of adopting solar energy.
Solar Exposure on Your Roof:
The orientation and shading of your roof are critical factors in maximizing solar energy generation. A roof with ample sunlight exposure ensures that your solar panels can generate the maximum amount of electricity possible.
Hence, by carefully considering these factors, Arizona residents can determine whether investing in solar panels is a wise choice tailored to their specific circumstances while contributing to a clean and more sustainable future.
Is Investing in Solar Energy Worthwhile in Arizona?
Absolutely, it is indeed a smart choice. In comparison to states like New York, Arizona’s solar systems generate about 70% more energy. This means you can achieve significantly higher energy output with a smaller number of solar panels.
Also, the money you invest in solar panels will rapidly pay off through savings on your electricity bills and government incentives, typically within just a few years.
Moreover, the adoption of solar power in households is on the rise each year, and the installation costs in the residential sector are decreasing without compromising the efficiency or quality of solar systems.
If you’re contemplating this eco-friendly and financially savvy home upgrade, now is the opportune moment to act. Some incentives are set to expire in the coming years, and you wouldn’t want to miss out on capitalizing on them.
Why Choose Solar SME?
Choosing to install solar panels and reduce your reliance on utility companies is a significant decision, but it doesn’t have to be a difficult one. Solar SME is a reputable and reliable name in the field of solar energy installation.
We provide robust guarantees to safeguard your investment in solar energy for the long term. Our commitment extends not only to our installation services but also to the high-quality products we use. With our power production guarantee, you can have full confidence that you are making the right choice by partnering with Solar SME for your home’s solar installation needs in Arizona.
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