Arizona has some of the best solar power-generating potential in the US. Most of the state gets over 300 days of clear sunshine, and the sunniest regions get over 320 days. It’s no wonder there is a growing interest in solar investments among homeowners. We can help you determine if a solar panel installation is a good financial decision for your Arizona property.
Arizona’s Solar Advantage
Arizona is perfectly placed to convert sunshine into electricity. It is the sunniest state in the country. With most of the year drenched in cloudless sunshine, Arizona has intense solar radiation levels and a larger number of optimal solar generation days per year. This means solar panels will achieve optimal efficiency for longer hours and more days out of the year than any other state in the US. In other words, each panel will generate more power per year in Arizona than anywhere else.
Initial Costs and Financing Options
The financial aspect of investing in solar panels can be broken into three considerations: initial cost, long-term savings (and ROI), and incentives that reduce the initial cost or increase the long-term savings. In terms of initial cost, remember that you have the ability to finance your solar panels, just like any other major home improvement project.
The average cost of a solar installation in Arizona is about $10,000 – $15,000, which can be reduced by federal and state incentives. Factors affecting the installation cost include your system size, your choice of equipment, and the complexity of your installation. The federal solar tax credit can reduce that cost by 30% through tax deductions.
Arizona-Specific Incentives and Policies
What solar incentives can Arizona homeowners access? There are quite a few to help reduce the cost of your initial solar investment and the value of your long-term savings.
- State Tax Credit: You can 25% of the installation cost (up to $1000) as a tax credit in the first year.
- Federal Solar Investment Tax Credit (ITC): Claim 30% of your installation cost (no limit) as a tax credit, with rollover options.
- Property Tax Exemption: You don’t have to pay property taxes on the value added to your home from solar.
- Sales Tax Exemption: No sales tax on solar panel system equipment.
- Net Metering: Utilities offer the option to sell back extra power for energy credits.
- Local Programs: Local governments and utility companies may offer rebates and net billing to reduce costs.
Factors Affecting Financial Viability
What might affect the financial wisdom of a solar installation on your Arizona home?
Consider your roof’s slope direction and steepness, whether there is shade over your roof, and the durability of your roof for a solar installation. Take a look at your local electricity rates and net metering options and your home’s energy consumption patterns. You will also, naturally, want to consider your future plans such as roof reinstallation (good to pair with solar), home improvements, or plans to move.
Arizona Is Great for Solar
If you are wondering if solar panels make financial sense for your Arizona home, you can get a free consultation from Solar Optimum. Arizona is a great state for solar power generation, and all those sunny days can lead to rapid ROI. Contact us today to get a free quote on a solar panel system.
