Solar Panels in Arizona

Make the best decision about investing in solar power in Arizona

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Solar Panels

Arizona Solar Energy

Arizona is the sunniest state in the US, making it an ideal place for solar panels. While the weather is perfect for solar, the market in Arizona has been hampered by a lack of incentives, net metering regulations, and debate around the effectiveness of solar.

There is tremendous potential for growth for solar in Arizona as more incentives are put in place and the cost of solar because more cost effective.

Cost of solar panels in Arizona

How much do solar panels cost in Arizona? 

The average price for a home solar panel system in Arizona is $14,650 or about $2.52 per watt. Systems will vary depending on the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.

How long does it take to pay off solar panels in Arizona?

The average payback period for solar panels in Arizona is around 8 years years. Your payback period will depend on the cost of your system and the amount of power it generates. The more energy your system generates the faster it will pay for itself.

Are solar panels worth it in Arizona?

Everyone has their own method for determining if solar is “worth it”. If your objective is to leverage solar to eliminate or reduce your electric bill you have different expectations of someone who is more interested in reducing their carbon footprint. 

To help you determine the best option for you you can use this solar calculator that will weigh different solar options and other renewable energy options.

Why invest in solar panels in Arizona

There are four reasons most Arizonians decide to invest in solar panels. You should think about why you want to go solar and learn more about the incentive programs and system options available for your home.

Reduce your carbon footprint

Solar has roughly 20 times less carbon output than coal-powered energy sources. After three years of use, solar systems are completely carbon neutral and remain so for the duration of their lifespan. 

In short, if you want to reduce your carbon footprint going solar is a great option. 

Lower electricity bills

When you have your own solar system you are putting energy back into the grid. Your utility rewards you by crediting back the value of the energy you put into the grid. For example, if your system generates 2,500 kWh in a month and you use 2,500 kWh in that month you would have a $0 electric bill.

In most cases, if your system generates more energy than you use the credits will roll over to the next month.

Become energy independent

With the right solar system, you could potentially have a self-sufficient power system for your home. This means you don’t have to rely on the grid for energy. If the grid has an outage you could still power your home with your solar system. 

Those who are trying to become energy independent often pair their solar system with a battery. This allows you to store electricity and use it when you need it.

Solar panel incentives in Arizona

Find solar incentives in Arizona

While your local municipality may offer some incentives there are two main solar incentives in Arizona.

Arizona Residential Solar and Wind Energy Systems Tax Credit

Arizona residents receive a solar tax rebate up to $1,000 on new solar panel systems. For more information visit the Arizona Department of Revenue website.

Arizona Solar and Wind Equipment Sales Tax Exemption

Arizona provides a sales tax exemption for the retail sale of solar energy devices and for the installation of solar energy devices by contractors.

Arizona Federal Solar Tax Credit

Like every other state, new solar panel systems in Arizona are eligible to receive the federal solar tax credit of 26%. This credit is applied on your annual income tax credit.

Buying vs Leasing Solar Panels in Arizona

There are many options when it comes time to purchase our solar panels. You can finance, lease, or pay the entire cost upfront. The right choice will depend on your financial situation and the costs of your system and other factors. Our solar calculator will help you weigh your options. You can find more information on leasing vs buying solar panels here.

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