Benefits of Solar Energy
Solar energy comes with multiple benefits. Let's look at a few of them.
- Better energy independence: Solar panel systems with battery storage systems operate through power outages and emergencies, and you won't have to depend on the power grid for your safety and comfort.
- Lowered energy bills: You can avoid the expensive cost of grid-tied power by producing some electricity right where you use it. Plus, many states provide net metering which can allow you to sell your unused energy back to credit part of your bill.
- Reduced carbon footprint: Solar is the universe's most abundant clean energy source, meaning you can reduce or eliminate your home's dependence on non-renewable sources.
What Solar Incentives Are Available to Lake Havasu City Homeowners?
The state of Arizona offers numerous solar incentives to help reduce your solar system costs. Below is a breakdown of eligible solar programs where you live.
Incentive Type: Sales Tax Incentive
Incentive Amount:
100% of sales tax on eligible equipment
Incentive Type: Personal Tax Credit
Website: azdor.govIncentive Amount:
25%
Incentive Type: Personal Tax Deduction
Incentive Amount:
Total cost, exclusive of taxes, interest and other finance charges
Incentive Type: Property Tax Incentive
Incentive Amount:
100% of increased value
Incentive Type: Rebate Program
Website: mohaveelectric.comIncentive Amount:
PV and Wind systems: $0.05/W
Solar Water Heating: $0.75/kWh of estimated first year energy savings
Incentive Type: Personal Tax Credit
Website: ecowatch.comIncentive Amount:
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Lake Havasu City
The more comprehensive your company investigation is, the better your solar system will ultimately operate. Here are some important factors to bear in mind while shopping for a solar provider.
Licensing and Training
In Arizona, the Registrar of Contractors issues distinctive licenses for solar PV and thermal installers. To install solar PV systems, a contractor must be a licensed electrician, and for solar thermal systems, they must be a licensed plumber. You should also visit a company's website to learn about its private certifications. Two of the most recognized are the PV Installation Professional and Solar Heating Installer certificates, granted by the North American Board of Certified Energy Practitioners (NABCEP). Some companies don't publish this information online, so you should also ask your estimator about them.
Cost of Solar Panels in Lake Havasu City
Your solar modules' model will influence how much power you can produce. Monocrystalline panels are among the highest quality and perform the best but cost the most. Polycrystalline panels offer you a budget panel with a traditional design, but at the cost of less power generation. Thin-film panels have a low cost and are excellent for non-traditional roofs, but aren't recommended for large home installations.
You can also add battery backups and electric vehicle (EV) chargers. These will increase your total installation cost, but they can increase your solar system's performance. Not every solar contractor provides these add-ons, so look for a contractor that installs them if it's important for you.
If you're a resident of Lake Havasu City and want a five-kilowatt solar energy system, you could plan to spend about $15,350 for parts and installation. See more information on specific component and solar panel costs in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,065 |
| Solar Polycrystalline | $830 |
| Thin-Film | $485 |
| Solar Battery | $681 |
| Solar Home EV Charger | $2,555 |
Financing Solar Energy in Lake Havasu City
Choosing the ideal financing plan will influence your overall solar system cost and expected savings. Common payment options include power purchase agreements, leases, cash payments, and loans. Though it involves a large up-front payment, cash is the most affordable choice because it doesn't accrue interest and qualifies you for incentives. Solar loans are the next best option. As with a car loan or mortgage, you'll pay a monthly rate towards system ownership, including interest. You can still apply for cost-saving solar incentives, and depending on your lender, you could put as little as $0 down. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) enables you to pay a monthly rate based only on the energy you use, akin to an electric bill. We generally don’t recommend these two choices because you won't own the solar system and cannot use solar incentives. We suggest working with a company that offers multiple financing options. Ask each representative about what's available, and get more than one estimate for the best odds of staying within your spending limits.
The table below lists the average payback periods for different capacities of solar systems in Lake Havasu City.
You are eligible for a 26% federal solar tax credit for new solar energy devices until the year 2032. Municipal and state governments and utility companies might also offer rebates, discounts, and unique financing solutions that could save you more.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 1.7 years |
| 2 kW | 3.3 years |
| 5 kW | 8.3 years |
| 10 kW | 16.5 years |
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Frequently Asked Questions About Solar in Lake Havasu City
How much money could I save by going solar in Lake Havasu City?
Is solar energy easily accessible in Lake Havasu City?
Will a solar PV system raise my Lake Havasu City home worth?
What can I do to calculate my home's solar viability?
How long does the solar installation process require?
What's the average solar system size in Lake Havasu City?
How does "net metering" work, and do I need to participate?
Some states or energy providers require you to participate in net metering when installing your solar system, while others give you a choice. Either way, once you participate, you'll receive a check or bill credit for your excess generation at a wholesale or retail rate.
What's the difference between a PPA and traditional financing?
You might look into a PPA if you don’t want to be responsible for maintenance and don’t want to invest in a system, but keep in mind you won’t be paying toward ownership or be able to access any solar financial incentives. Many solar experts don’t recommend PPAs. Our guide covers other financing options above.
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