In Arizona, you can expect to save about $43, 000 in utility bills during a solar panel system’s lifespan. And that’s after the panels have accrued enough savings to pay for themselves.
But that said, solar panels don’t come cheap. So the primary question in most Arizona homeowners’ minds remains, “what is the cost of solar panels in Arizona?”
Let’s break it down:
What is the cost of installing solar panels?
Before anything, it’s worth noting that the cost of installing solar panels is not the same across the board. It varies depending on factors like our home’s size, location, and system type.
However, if you consider the average cost per watt in Arizona, which ranges from $2.15 to $2.53 per watt, and your average Arizona home’s energy needs (about 6,000 watts), the cost of solar panels in Arizona comes to around $12,500 – $15,500.
On the lower end of the spectrum, a 2kW system that uses polycrystalline panels will go for about $4,800. And on the higher end, you can expect to spend about $48,000 for a 20kW system with monocrystalline panels and a full battery backup.
If you factor in local solar incentives like the federal investment tax credit, this price can go down by thousands of dollars.
Factors Affecting the Cost of Solar Panels in Arizona
As we mentioned, the price you pay for installing solar panels will depend on a few factors including:
- The type of system
- The size of the system
- Cell type
- Labor costs
Type of system
There are two solar panel installation types: the grid-tied system and the off-grid.
The first and most common, the grid-tied system, means that you’ll still be connected to the state’s electrical grid. Therefore, you can switch between traditional electricity and solar power when the sun is not strong enough.
Depending on how often you make the switch, these types of systems can help lower your utility bills or eliminate them completely. On average, a grid-tied system costs $13,000 – $15,000.
On the other hand, there are off-grid solar systems, whereby you completely cut off your home’s power system from the state’s electrical grid. Here you rely completely on solar panels and batteries to fulfill all your home’s electrical power needs.
For this reason, off-grid systems tend to be larger and require batteries to store power for night use. You will also need special permits to go off-grid, which may come with certain restrictions on battery storage, depending on your home area.
All these factors make off-grid systems more expensive than grid-tied systems, with the average cost of installation coming to about $28,000 – $58,000.
Size of the system
As you may expect, the bigger the solar panel system, the more it will cost to buy and install. Ideally, you can install any size system on any size of home. However, larger homes generally have more energy needs, which often translates to higher installation costs.
Your power needs will also affect the cost and type of installation you require. Do you want a system that handles all your needs or focuses on supplying power to particular things? Do you want to have extra power to cater to future energy demands? All these factors can affect the pricing of the system you put in place, sometimes leading to a higher price for a smaller home.
Here’s a price estimate per square foot:
- 1,000 sq.ft – $4,000 – $20,000
- 1,500 sq.ft – $5000 – $25,000
- 2,000 sq.ft – $8500 – $25,000
- 2,500 sq.ft – $13000 – $30,500
Solar panels come in three main forms: Polycrystalline, monocrystalline, and thin film.
Polycrystalline panels are composed of multiple silicon crystal fragments. They are less expensive but less efficient at energy production when compared to their monocrystalline counterparts. They are best suited for sunny regions, including Arizona, and cost around $11,000 – $14,500
On the other hand, monocrystalline panels are composed of whole silicon crystals. This makes them more energy efficient but also more expensive. They work exceptionally in sunny regions like Arizona and cost about $12,000 – 17,500
The least thin film panels are lower in cost and don’t perform as well in sunny regions. On average, thin film panels cost about $11,000 – $14,000.
Lastly, you also have to factor in the labor costs. This can also vary depending on your location, system, and type of installation required. On average, you can expect the cost of labor to be around $0.9 per watt. This comes to about $5,400 for a 6kW system.
Labor costs also depend on the contractor you hire. To get the best deals, you can compare a few of your local installers and choose one based on cost and value. But ultimately, your aim should be to settle on a contractor that will guarantee an efficient and durable system.
Is it worth installing solar panels in Arizona?
The short answer is yes. With Arizona seeing an average of 299+ sunny days every year, you stand to save a lot on air conditioning bills while taking advantage of the sunny climate to generate energy for your home.
If you are considering installing solar panels for your Arizona home and don’t know where to start, contact Solar Optimum today. Our team of professionals will gladly take you through the entire process and settle on a solution that best suits your budget and home.