Are you considering solar power but unsure if this is the right decision for you? Solar power has a number of benefits for homeowners in Arizona, but the upfront investment can be tough to stomach for some.
In this article, we will outline some of the main benefits of solar power to help you decide if it is worth the investment for you.
4 Reasons To Invest In Solar Power In Arizona
Solar power has a number of financial and environmental benefits. Here are four ways that solar power makes life better for residents of Maricopa County, Arizona:
1. Save on Electricity Bills
Grid power is expensive and solar energy helps you become less reliant on power supplied by your utilities. This can reduce your electricity bills significantly. In fact, many homeowners are able to reduce their monthly utility bills down to a $10 interconnection fee.
Consider this: Arizona’s average homeowner pays an electricity bill of $136.70. This translates into savings of $1,640 a year. For most homeowners, 12-year energy savings will pay off the solar panels. Over the remainder of the panel’s life expectancy, say 13 years, you can save about $23,891 on energy bills.
Moreover, you can sell excess solar power in Arizona and use those earnings to pay for the solar panels. This will mean you’ll save from day one of the installations.
2. Tax Incentives
There are a lot of solar incentives in Arizona that can help reduce the upfront solar installation costs making conversion more enticing. The biggest incentive is the Federal solar investment tax credit. Anyone homeowner that buys and installs solar panels by 31st December 2023 is eligible for a 30% Federal Solar Tax Credit. This averages to about $9.000.
Other solar incentives in Arizona include:
- Residential Solar Energy Tax Credit – All solar energy systems in the Grand Canyon State are eligible for a 25% tax credit on the system’s value up to $1,000.
- Solar Equipment Sales Tax Exemption – in Arizona, solar panels are exempted from the 5.6% sales tax resulting in immediate savings during purchase. Adds up to about $1,680 for an 11.5kW solar system.
- Energy Equipment Property Tax Exemption – increase in home value courtesy of solar system installation isn’t taxed.
3. Increases The Value Of Your Home
Installing solar panels increases the value of your home significantly. According to Zillow, homes with solar panels go for 4.1% more than homes without solar power. If a home is worth $415,372, a 4.1% increase is $17,030.
There is also evidence that shows homes with solar panels sell faster than homes without solar panels. By some estimates, they can sell up to 20% faster.
However, this increase is only if you buy solar panels in cash or finance them. Power purchase agreements and solar leases don’t spike your home’s value.
4. Better For the Community
The financial benefits of solar power are enticing. However, some homeowners are also intrigued by the impact going solar has on their community. Installing solar power means one less person depends on fossil fuels. The compounded effect of solar conversion in Arizona is reduced pollution and fewer carbon emissions.
More homes using solar power also puts less stress on the electrical grid and helps to prevent wildfires that can occur from downed power lines or outdated electrical equipment.
Are solar systems worth it in Arizona?
Generally, yes. However, you have to weigh the benefits against the investment. If high energy bills and environmental sustainability are big concerns for your household, then solar energy may be the solution you are looking for.
To learn more about the benefits of solar energy, download your free copy of Living with Solar or connect with one of our Energy Consultants today.
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