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.

Solar Energy Generated in Arizona

While Arizona is the sunniest place in the United States, not all residents are willing to cash out thousands of dollars to have their houses equipped with solar panels. Aside from that the need for incentives, net metering regulation, and the uncertainty of the effectiveness of using solar energy. 

Living in the desert doesn't guarantee that you will save money right away; a number of factors influence solar panels' ability to generate a specific amount of electricity. These elements consist of the following:

  • The Brand Panel
  • The sun your property is exposed to
  • The direction of the roof
  • Weather
  • The size of the system

The table below provides some average values you can use to determine how many panels you need to install to reduce your energy costs. However, there are many moving factors involved in the production of solar panel power.

The Top Solar Panel Company Installers in Arizona

Arizonans have access to the majority of the panel brands offered nationwide, which is not surprising given that the state is ranked fifth in the nation for solar conversion.

Although having options is excellent, it does require more study to select a brand that meets your demands. The majority of Arizonans choose high-efficiency solar panels to maximize the state's abundant sunshine and lower their high energy costs. Below are the list of the most popular solar energy system brand in AZ: 

  • SunPower (most energy-efficient panels in the solar industry)
  • Panasonic
  • Tesla
  • LG (will soon no longer be available)
  • REC
  • Trina Solar
  • Canadian Solar
  • Silfab

No matter where you live, picking a solar installer is a big decision. The experience with the solar business, including the level of customer service you receive, the caliber of the equipment, and the warranty coverage you receive, will depend on the firm you choose.

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

Individual taxpayers who install a solar or wind energy device at their Arizona home are eligible for the state's solar energy credit. The credit allows for a maximum of $1,000 for 25% of the cost of a solar or wind energy device, regardless of the number of devices installed. The year of installation is used for claiming the solar credit. The unused portion of the state tax credit may be carried forward for up to five years if the credit's value exceeds the tax liabilities of a payer in a given year. However, the credit is not available to taxpayers who lease equipment or who sign power purchase contracts with a third party who owns the equipment.

Arizona's property tax exemption was initially limited to "solar energy devices and any other device or system designed for the production of solar energy for on-site consumption." These systems are considered to have no value for property tax assessment purposes.

Scottsdale, Arizona was the first city in the state to create a green building program focused on residential home construction in 1998. The program aims to promote environmentally friendly building practices in the Sonoran Desert area by using clean, resource- and energy-efficient materials and techniques in the planning and construction of dwellings. The program's objectives are to reduce the negative impacts of construction and power plants on the environment, save money on energy, water, and other natural resources, and promote a healthier indoor environment.

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.