Benefits of Solar Energy
Solar energy offers multiple benefits. Here are some highlights.
- Better energy independence: Solar systems with battery storage operate through power outages and emergencies, and you won't have to rely on the power grid for your safety and well-being.
- Reduced carbon footprint: The sun is a highly abundant clean energy source, meaning you can minimize or conquer your home's dependence on "traditional" sources.
- Smaller power bills: Generating some or all of your own energy will cut power costs long-term.
What Solar Incentives Are Available to Phoenix Homeowners?
Arizona's public agencies and power companies offer a variety of solar incentives to help reduce your solar system costs. Check out a breakdown of eligible solar programs where you live.
Incentive Type: Sales Tax Incentive
100% of sales tax on eligible equipment
Incentive Type: Personal Tax Deduction
Total cost, exclusive of taxes, interest and other finance charges
Incentive Type: Property Tax Incentive
100% of increased value
Incentive Type: Rebate ProgramWebsite: srpnet.com
$0.30/kWh for annual estimated energy savings (based on SRCC rating)
Incentive Type: Personal Tax CreditWebsite: ecowatch.com
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 Phoenix
Choosing a company is the first step toward an effective and valuable solar system. Make your choice based on the following key factors.
Licensing and Training
Arizona's Registrar of Contractors grants distinctive licenses for solar thermal and PV contractors. 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 credentials. Two of the most respected 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 Phoenix
Different solar panel types look and perform differently. Monocrystalline panels offer the best energy production but cost more than other options. Polycrystalline panels produce less power, but start at a more budget-friendly price point. Thin-film panels work well for small projects like RVs and sheds, but they're not ideal for larger installations due to their low performance.
You can also add electric vehicle (EV) chargers and battery backup systems. These will increase your total project price, but they can boost your solar system's efficiency. Not all solar providers offer these additional features, so look for a provider that sells them if it's crucial for you.
You can expect to pay about $15,350 on average for a five-kilowatt solar energy system in Phoenix. Use the table in this section to get an idea of the amount Phoenix solar companies might quote for your specific system.
|Solar Panel Cost
|Solar Home EV Charger
Financing Solar Energy in Phoenix
There are numerous ways to pay for a new solar system, and the right one will reduce your expenses. A few of the most common options include power purchase agreements (PPAs), leases, cash payments, and loans. Though it requires a large up-front payment, cash is the most economical choice because it qualifies you for solar incentives and doesn't accrue interest. Solar loans are the next best option. As with a car or home loan, you'll pay a monthly rate towards system ownership, including interest. You can still apply for money-saving solar incentives, and depending on your lender, you could put as little as $0 down. Solar leases allow you to rent your panels for a set monthly rate, while PPAs let you pay only for the energy you use, much like an electric bill. Both options disqualify you for solar incentives and don't grant you system ownership. Solar experts generally don't recommend them, but they might be suitable in some cases. We advise working with a contractor that offers multiple financing options. Talk to each salesperson about what's available, and get more than one estimate for the best odds of keeping within your budget.
The table below lists the average payback periods for different capacities of solar systems in Phoenix.
You are eligible for a 26% federal tax credit for new solar energy devices until the year 2032. Local and state governments and utility companies might also offer rebates, discounts, and specialized financing options that could save you more.
|Solar System Capacity
|Estimated Payback period
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Frequently Asked Questions About Solar in Phoenix
How much money could I save by going solar in Phoenix?
How common is solar energy in Phoenix?
Should I expect a boost in my property value after installing solar panels?
Could I still use solar power if I live in a wooded, dark, or rainy area?
How can I check my property's solar viability?
What care do my solar panels need, and how frequently do they need it?
What's the difference between a PPA and traditional financing?
In contrast, solar loans can come from specialty lenders, local banks, installer and the government. You'll need to pass a credit check to qualify for most of them. While the upfront costs are greater, and you'll be responsible for upkeep, you'll also have total ownership and can apply for many more benefits.
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