Residents of Maricopa County, Arizona are living in one of the best locations for solar energy in the country – possibly the entire planet! Not only is Arizona one of the sunniest states in the U.S., it is also one of the leading states for solar growth in the country, as well!
If you’re thinking of going solar in Arizona, you aren’t alone. In this article, we’ll break down the average cost of solar energy so you can decide if it worth it for you.
Is solar energy installation worth it?
The simple answer is yes. Of course, the value of your installation can depend on a number of factors, but with the average energy costs rising 3-4% each year, tapping into the energy of the sun makes it a very worthwhile investment. Some of the things that will impact your return on investment are:
- Energy costs
- Financing costs, if any
- Climate and the amount of sun
- Available federal and state incentives
How is solar in Arizona different?
Arizona offers a unique opportunity to use solar power because of the extended sunshine and high temperatures. Though there is an abundance of sunlight, there is also a higher need for energy. So while the cost per watt when purchasing solar panels is less than the national average, the total cost is more because of the high demand for energy.
What determines the cost of solar in Arizona?
There are many factors that affect the cost of what you will pay for solar panels in Arizona. Among the most common are:
- The size of the system purchased. This depends on your electricity usage, the size of your home, and the type of appliances in your house. Typically, the larger the electrical usage, the larger the solar system that is needed. Larger systems generally mean more panels, which usually equate to higher prices.
- South-facing roofs offer easier installation costs and less expense since they receive the most direct sunlight.
- There are different solar panel types to choose from, with, of course, different price points. Sometimes cheaper is not really less expensive since your return on investment is realized over a number of years and only high-quality panels will last for an extended period.
- As stated, warmer climates, like Arizona, can cost less per watt but because of the energy needs, a larger system may be required.
The average cost of a solar panel in Arizona is $2.46 per watt. So a home with 1500 square feet, requiring 10 kw would cost about $24.000 before incentives and offers. Likewise, a 2500 square foot home with a 15kw system would come in at nearly $37,000.
Arizona Tax Credits and Incentives
Most Arizona residents qualify for the Federal Solar Tax Credit, also known as the Residential Clean Energy Credit, which allows them to reduce the amount of tax they owe by up to 30% of their solar panel installation costs from their federal income tax. In addition, many Arizona residents can opt for battery storage and can get additional federal taxes. Keep in mind that these are credits to your federal income tax, and though they do not reduce your bill, they do reduce your tax liability for the year of installation.
In addition to federal tax credits, Arizona residents can take advantage of the state solar tax credit, which credits their state tax liability for up to 25% of the total system cost with a maximum benefit of $1000.
Though your solar installation will increase the value of your home, you will not have to pay Arizona property taxes on that increased amount. In addition, Arizona exempts you from sales tax on the retail sale and installation of the devices by contractors.
Arizona’s three largest utility companies, Arizona Public Service, Salt River Project, and Tucson Electric Power all offer solar export credits that allow you to “sell back” excess energy generated but not used by your solar system.
Solar Optimum is the Premier Solar Panel Installer in Arizona
At Solar Optimum, our team of knowledgeable professionals is here to answer your questions, help you with design, and make sure you purchase the high-quality solar system to meet your needs while showing you all the discounts and credits you are entitled to.
We serve all of Maricopa County, including Buckeye, Carefree, Cave Creek, El Mirage, Goodyear, Litchfield Park, Paradise Valley, Phoenix, Surprise, Wickenburg, and Youngtown. Give us a call and speak with one of our Energy Experts today.
