Key takeaways

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Step into the world of Arizona solar power, the sun-kissed state that's leading the charge in renewables. If you haven't embraced this clean energy trend yet, it's high time you give it serious thought, especially given its many benefits. Our guide is here to enlighten you on all aspects of installing solar panels in Arizona, including costs, incentives, and the top installers who can help you embark on this transformative journey.

Exploring Arizona Solar Power

Arizona, renowned for being the nation's sunniest state, has utilized this natural gift to create a powerhouse of sustainable energy. Ideal for harnessing solar power, the state's solar installations often outperform similar systems elsewhere. Arizona has impressively deployed 6,457 MW of solar power, enabling it to climb the national ranks to 5th place from 7th in 2022. As a result, nearly a million homes - precisely 984,047 - can be powered by Arizona solar power, indicating that close to 10% of the state's total electricity is solar-derived. Furthermore, it has become the third-largest residential solar power producer nationwide.

Several factors have contributed to the widespread popularity of solar energy Arizona. The state not only boasts abundant sunshine, essential for efficient solar power generation, but also offers a range of attractive incentives. These incentives, along with the notable 54% solar cost decrease over the last decade, have made solar panels in Arizona a cost-effective option for homeowners and businesses alike.

The Economics of AZ Solar Panels: How Much Does Solar Power Cost?

The average cost of solar energy Arizona is estimated to be $2.46 per watt, which sits noticeably below the national average of $2.95. This makes solar investment here quite cost-effective, giving you more value for your money.

An average Arizona household utilizes about 12,700 kWh of power annually. To cater to this need, a 7.3 kW solar system would be necessary. With the existing price per watt, the anticipated outlay for installing solar panels in Arizona would be roughly $18,000.

On average, it takes about 7.5 years to recoup the initial investment in az solar panels. After that, you're essentially reaping the benefits of free solar energy from your setup. Assuming an average-sized solar system and an upfront cash payment, you could save upwards of $36,700 over 20 years with solar panels worth in az.

Clean Energy Incentives to Embrace Solar Panels in Arizona

The state enjoys not only an abundance of sunshine but also an array of incentives that make the switch to solar more appealing. Let’s look at the most important benefits offered for those adopting solar power in Arizona.

Federal ITC: First and foremost, homeowners who want to embrace solar energy Arizona can make the most of the federal solar investment tax credit, also known as the ITC. It provides a deduction equivalent to 30% of the expenses related to solar installation from your federal taxes. That said, the Inflation Reduction Act outlines a gradual diminishing of this credit, lowering it to 26% by 2033, 22% by 2034, and it will vanish entirely by 2035. Therefore, the sooner you go install solar, the higher the credit you can receive.

It's important to understand that the ITC doesn't function as a tax refund but rather lowers the taxes due. Unlike the state tax credit, there is no limit to the amount you can claim. Furthermore, if your tax liability is lower than the credit, it can be carried over for up to five years.

Arizona State Residential Solar Income Tax Credit: Apart from the federal tax credit, there are several state incentives specifically designed to encourage the installation of solar panels in Arizona. For instance, residents can benefit from a one-time tax credit equal to 25% of their installation costs, with a maximum limit of $1,000. If the amount of the credit exceeds the taxes owed, it can be carried forward for up to five years.

Property Tax Exemption: The state additionally grants a property tax exemption to homeowners installing residential solar panels Arizona, ensuring that they are not subjected to any property tax hikes resulting directly from installing a solar energy system.

Sales Tax Exemption: Lastly, Arizona offers a sales tax exemption for solar panels in AZ installed by approved contractors. However, it's worth mentioning that this exemption does not apply to solar battery storage or other accessories not included as part of the initial solar system.

Local Incentives: If you're considering installing solar panels in Arizona, you can take advantage of various local incentives. Notably, the Mohave Electric Cooperative provides the SunWatts Renewable Energy Incentive Program, which offers an attractive rebate to its customers. Specifically, you can receive $0.05 per watt for AZ solar panels, totaling up to $2,500.

Aurora inverters, key in converting DC to AC power for solar systems, ensure efficiency and reliability, enhancing green energy utilization and savings.

Best Installers of Solar Panels in Arizona

With solar power in Arizona going full steam ahead, there's no shortage of top-notch solar installation firms throughout the state. Let's shine a light on a few standout companies:

SunPower: A well-established solar company since 1985, SunPower sets high standards with their top-tier equipment, extensive warranty, and excellent reputation. They exclusively use Maxeon solar panels, highly efficient and sought-after, albeit costly. SunPower offers flexible payment options, including cash, solar loans, and no-money-down choices like solar leases and PPAs. They provide a superior 25-year warranty that covers equipment, energy production, and installation workmanship

Palmetto Solar: Palmetto stands out as an appealing option for solar energy in Arizona, offering the Palmetto Protect Plan. For just $12 per month, this plan extends the standard 25-year warranty, covering labor costs for repairs or replacements. Moreover, it includes timely service, discounts on essential services, and reliable 24/7 online chat support.

Elevation: A prominent local solar company, Elevation prioritizes tailored solar systems and enhances home energy efficiency. What truly sets Elevation Solar apart is their exceptional warranty coverage. While their 25-year equipment warranty meets industry norms, their performance warranty surpasses that of many competitors by an impressive five years, also covering a span of 25 years.

PV system installation involves mounting solar panels on rooftops or open spaces, connecting them to inverters, and integrating with the electrical grid.

Conclusion: Choosing Solar Panels in Arizona is a Brilliant Move

Wrapping up, Arizona's dynamic solar sector opens a world of possibilities for residents and businesses keen on embracing renewables. Choosing solar energy in Arizona not only paves the way for a greener future but also rewards you with free solar power and long-term savings. Additionally, with plenty of trusted solar installers, Arizonians can rest assured they'll receive quality services and comprehensive warranty coverage.

Sources:

https://www.seia.org/state-solar-policy/arizona-solar

https://www.energysage.com/local-data/solar-panel-cost/az/#:~:text=How%20much%20are%20solar%20panels,Arizona%20coming%20in%20at%20%2412%2C300

https://www.energysage.com/local-data/solar-panel-cost/#:~:text=The%20average%20cost%20of%20a,%2FW%20(before%20incentives)

https://www.electricitylocal.com/states/arizona/#ref

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Posted 
Jun 28, 2023
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