Arizona is one of the top solar states. In the last few years, the state has seen a notable growth in solar installations, partly due to the decent return on investment that many solar panel owners have realized.
When it comes to solar, ROI is an important consideration, one that helps you determine whether making the switch is a truly worthwhile investment. So what makes Arizona rank as one of the best solar panel ROI states? Here’s everything you need to know.
What Is Solar Panel ROI?
Solar panel ROI (return on investment) is simply the total amount of money you make once you have passed the solar payback date. You can make money from solar panels through savings on your energy bills as well as the value added to your property. This metric is oftentimes used to determine the financial attractiveness of a solar system.
Solar panels have a high ROI, particularly in areas with high solar potential. In such areas, the panels generate enough power to help meet your electricity needs and eliminate your energy bills. To calculate your ROI, divide the profit earned from the panels by the cost of installation, then multiply by 100.
4 Reasons Arizona Is a Top State for Solar Panel ROI
Arizona remains an ideal location for harnessing power for solar energy. Below are some reasons why solar conversions in the state are worth the investment.
Some of the Best Incentives Nationwide
In addition to the federal solar tax credit, the Grand Canyon State offers a solar tax credit of 25 percent of the total cost of your solar energy system, up to a maximum of $1,000. Eligible residents can also take advantage of various local solar incentives as well as the net billing program to create additional savings.
Systems Are Exempt From Property and Sales Taxes
In Arizona, eligible solar energy devices, such as solar panels, are exempted from the state’s 5.6 percent sales tax. The one-time sales tax exemption means immediate savings when you buy the equipment. Arizona residents also do not have to pay taxes on the additional value added to their property by a solar panel system.
Average Cost Is Much Lower Than National Average
The average cost of a solar power system in Arizona is a little over $12,000. This is considerably lower than the national average, which ranges from $17,000 to $24,000. The lower cost not only helps you save money but also recoups your initial investment within a shorter time, which may in turn result in a higher ROI.
Arizona Is One of the Sunniest States
The majority of the year is bright throughout Arizona. The state hits the sweet spot of having many hours of peak sun while also having high energy costs. The average electric bill in Arizona is 44 percent higher than the national average. This makes breaking even and reaching the buyback period easier for those who invest in solar energy.
See Why Solar Is Worth It in Arizona
Going solar in Arizona can end up saving you lots of money down the road, particularly when partnering with a qualified energy provider. Solar Optimum is a leading energy provider specializing in solar energy, battery storage and roofing installations. We provide high-quality solar products and installations as part of our commitment to help you get a good solar panel ROI. Contact us today to learn more about how you can benefit from solar energy in Maricopa County and the Greater Phoenix area.
