Yes. Arizona is one of the states with the cheapest solar installation rates in the US. The average solar installation cost is about $2.64 per watt, which is lower than the average price of installing solar power systems across the US, $3.00 per watt. Several factors contribute to the cheap solar power installation price in Arizona. This ranges from solar installation incentives from the state and federal governments, abundant sunlight, and net metering policies, among other factors.
Continue reading to learn about the price of installing solar in Arizona compared with other states and more about the factors that make solar power affordable here.
What is the Average Price of Installing Solar in Arizona Compared with Other States?
The Lawrence Berkeley National Laboratory’s Tracking the Sun Report estimates the price of solar installation in Arizona to be $3.81 per watt in the first two months of 2022. Therefore, considering the average Arizona household system size is 9.39 kW, home solar installation costs up to $83,729. This doesn’t factor in factors such as federal and state solar incentives that would bring down the cost.
However, when comparing prices from EnergySage, their estimated price per watt is $2.46. This puts the average price of installing a 9kW solar system at $22,140, which can be as low as $16,384 with the inclusion of federal and state incentives.
These two pricing models make Arizona one of the cheapest states for solar installation. However, these prices are bound to fluctuate based on the type of solar panels you decide to install and the system size.
What Makes Solar Power Cheaper in Arizona?
Several factors make solar power cheaper in Arizona compared to other states. Some of these factors include:
Adequate Sunlight
Arizona is one of the sunniest states in the US, with places like Phoenix receiving up to 3,872 hours of sunshine every year. This makes it the sunniest city in the US. Therefore, installing solar panels in this state will guarantee high solar irradiance levels, leading to high electricity generation throughout the year. This cuts down the use of stored electricity and maximizes your net metering.
Net Billing Policy
Arizona utility companies utilize a net billing policy that provides homeowners with lower solar savings. This differs from net metering since the excess electricity sent to the grid is not credited at the retail value. The utility company then pays your electricity bill through credit to offset some of your future electricity costs.
State Solar Incentives and Tax Credits
Arizona homeowners have different incentives that help them cut installation costs. These solar incentives include the Residential Solar Income Tax Credit, which offers a 25% tax credit for installations up to $1,000. They also offer an Energy Equipment Property Tax Exemption that exempts the additional taxes that come with your increased home value after installing a solar power system.
Homeowners can also enjoy the Solar Equipment Sales Tax Exemption that exempts sales tax for solar energy devices except for solar battery storage. On top of these statewide incentives, Arizona homeowners have the Federal Solar Tax Credit that currently offers a 30% deduction of their solar power installation cost on their federal tax.
Get the Best Solar Power Installation Services with Solar Optimum
Every homeowner in Arizona has every reason to consider installing solar in their homes. With the opportunity to save on installation through incentives and Arizona net billing policies, you don’t have to worry about the cost of this project. There are also different solar financing options to explore.
Solar Optimum is a leading solar company committed to helping homeowners become 100% energy independent. We are currently serving customers in Buckeye, Carefree, Cave Creek, El Mirage, Goodyear, Litchfield Park, Paradise Valley, Phoenix, Surprise, Wickenburg, and Youngtown. Get in touch with us today and learn how we can help you.
