Benefits of Solar Energy
Solar energy offers multiple benefits. Here are some highlights.
- Better energy independence: Solar panel systems with battery storage systems 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. Plus, some states provide net metering programs that enable you to sell your surplus energy back to the grid, generating extra credits toward your energy bill.
What Solar Incentives Are Available to Phoenix Homeowners?
Arizona homeowners who upgrade to solar could qualify for rebates, special financing, tax credits and reimbursements. Here are just a few of the region'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: srpnet.comIncentive Amount:
$0.30/kWh for annual estimated energy savings (based on SRCC rating)
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 Phoenix
The cost and performance of solar panels often hinge on the solar company that mounted them. Here are some important factors to keep in mind while shopping for a solar specialist.
Licensing and Training
The Arizona Registrar of Contractors issues specialty licenses for solar PV and thermal contractors. To install solar thermal systems, a contractor must be a licensed plumber, and for solar PV systems, they must be a licensed electrician. Check a company's website for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), among the solar industry's most respected trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Phoenix
Different solar panel types look and perform differently. Monocrystalline panels cost more than other options, but they generate the most power and generally have the highest quality. 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.
If you want to charge an electric vehicle (EV) or use your solar power in dark weather, you can pay extra for add-ons. By selecting the right components, you can make your system more effective and convenient to use. Not every solar company offers these optional components, so look for a provider that installs them if it's important for you.
Generally speaking, it costs about $15,350 for a five-kilowatt solar array in Phoenix. This table lists more specific costs for different solar panel types and system components in your area.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,182 |
| Solar Polycrystalline | $922 |
| Thin-Film | $539 |
| Solar Battery | $756 |
| Solar Home EV Charger | $2,836 |
Financing Solar Energy in Phoenix
There are a plethora of ways to pay for a solar energy system, and the right one will help you decrease overhead. A few of the most common options include cash payments, loans, power purchase agreements (PPAs), and leases. Most solar experts recommend paying cash or using a solar loan. Cash payments demand 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. Much like a home or auto loan, you'll pay a set monthly rate with as little as $0 down. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) lets you pay a monthly rate determined by the energy you use, akin to an electric bill. We usually don’t recommend these two choices because you won't own the panels and cannot use solar incentives. Ask each provider you're considering about the payment plans it offers. A team member can help you determine the most suitable option for your pocketbook.
The table below lists the average payback periods for different capacities of solar systems in Phoenix.
You can claim a 26% federal solar tax credit from the IRS for new residential solar systems purchased before 2032. Additionally, utilities and local governments may have their own rebates and financing plans 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 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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