Benefits of Solar Energy
Solar energy offers multiple perks. Let's look at a few of them.
- Better energy independence: Photovoltaic solar panel systems with battery backups and storage systems work through power outages and emergencies, and you won't have to depend on your power company for your safety and comfort.
- Lowered energy bills: You can skip the premium cost of grid-tied power by producing some electricity at home. 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: The sun is the universe's most abundant clean energy source, meaning you can lower or beat your home's dependence on "traditional" sources.
What Solar Incentives Are Available to Oro Valley Homeowners?
Arizona homeowners who decide on solar could qualify for tax credits, reimbursements, special financing and rebates. Here are just a few of the area's incentive programs.
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: trico.coopIncentive Amount:
$0.40 per expected first year kWh 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 Oro Valley
Choosing a company is the first step toward an effective and valuable solar system. Make your choice based on the following vital factors.
Licensing and Training
The Arizona Registrar of Contractors issues specialty licenses for solar PV and thermal installers. To install solar thermal systems, a contractor must be a licensed plumber, and for solar PV systems, they must be a licensed electrician. You should also visit a company's website to learn about its private certifications. Two of the most prestigious are the Solar Heating Installer and PV Installation Professional certificates, awarded 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 Oro Valley
The style of solar panels you purchase decides how much electricity you can generate. Monocrystalline panels and high-quality and give you the best performance but cost more upfront. Polycrystalline panels work with a tried-and-true mechanism and cost less, but produce less power. Thin-film panels aren't the best for large residential installations, but they are excellent accessories for non-traditional roofs.
You can also add electric car (EV) chargers and battery backup systems. These will increase your total installation cost, but they can boost your solar system's performance. Not all solar companies include these optional components, so look for a contractor that installs them if it's essential for you.
A majority of Oro Valley homeowners opt for solar systems designed for five kilowatts (kW) of electrical capacity. These systems run about $15,350 to install, considering both parts and installation. You can find more specific solar cost information in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,091 |
| Solar Polycrystalline | $851 |
| Thin-Film | $498 |
| Solar Battery | $699 |
| Solar Home EV Charger | $2,619 |
Financing Solar Energy in Oro Valley
Solar contractors use multiple different financing options to lower your costs and increase your savings. Though some providers offer unique payment plans, the most common are power purchase agreements (PPAs), cash payments, solar loans and solar leases. Most solar experts recommend a cash payment or using a solar loan. Cash payments require a large up-front sum, but they help you avoid paying interest, grant you system ownership, and qualify you for cost-saving solar incentives. Solar loans have the same benefits, though you'll pay more in total due to interest and fees. Similar to a car or home loan, you'll pay a set monthly rate with as little as $0 down. Solar leases allow you to pay a monthly fee to rent your panels, while a power purchase agreement lets you pay a variable rate based on only the energy you use. We generally don't recommend these options since you won't own your system and are disqualified from solar incentives, but they might be appropriate in certain circumstances. We suggest working with a contractor that offers multiple financing options. Talk to each representative about what's available, and secure more than one estimate for the best odds of keeping within your spending limits.
The table below lists the average payback periods for different capacities of solar systems in Oro Valley.
You can claim a 26% federal solar tax credit from the IRS for new residential solar systems purchased before 2032. Additionally, local governments and utilities may have their own financing plans and rebates that could reduce your total cost even 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 Oro Valley
How much money could I save by going solar in Oro Valley?
How popular is solar energy in Oro Valley?
Will a solar PV system improve my Oro Valley home price?
How can I assess my property's solar feasibility?
Is solar panel installation a fast job?
What's the average solar system size in Oro Valley?
How are traditional solar loans and PPAs different?
In contrast, solar loans can come from the government, local banks, specialty lenders and installer. You'll need to pass a credit check to qualify for most of them. While the upfront costs are larger, and you'll be responsible for upkeep, you'll also have total ownership and can apply for many more financial rewards.
Should I get quotes from multiple Oro Valley solar companies?
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