Benefits of Solar Energy
Solar energy offers multiple advantages that will enhance your home for years to come.
- Reduced energy costs: Generating some or all of your own electricity will save you money on your electric bills long-term. Plus, some states offer net metering programs that make it possible for you to sell your extra energy back to the grid, generating extra credits toward your energy bill.
- Reduced carbon footprint: Adopting solar is a surefire way to decrease your carbon footprint and home fossil fuel dependency.
- Better energy independence: Solar panel systems can keep your home powered through emergencies and blackouts. You can use your solar energy anytime with an optional battery backup system.
What Solar Incentives Are Available to San Luis Homeowners?
The state of Arizona offers numerous solar incentives to help cut your solar system costs. Below is a breakdown of available 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: 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 San Luis
The purchase price and performance of solar panels often hinge on the provider that installed them. Here are some key items to remember while shopping for a solar installer.
Licensing and Training
In Arizona, the Registrar of Contractors issues separate licenses for solar thermal and PV 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), one of the solar sector's most trusted trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in San Luis
The kind of solar panels you purchase dictates how much electricity you can produce. 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 recommended for large residential installations, but they are ideal for small projects like converting RVs and sheds.
You can also add battery backups and electric vehicle (EV) chargers. These will increase your total installation cost, but they can boost your solar system's performance. Not all solar companies offer these optional components, so look for a company that sells them if it's essential for you.
You can plan to spend about $15,350 on average for a five-kilowatt solar energy system in San Luis. Use the table in this section to get an idea of how much San Luis solar companies might quote for your specific solar system's price.
Solar Panel Cost | Average Cost |
---|---|
Solar Monocrystalline | $1,050 |
Solar Polycrystalline | $819 |
Thin-Film | $479 |
Solar Battery | $672 |
Solar Home EV Charger | $2,521 |
Financing Solar Energy in San Luis
Choosing the optimal financing option will impact your overall solar system cost and potential savings. Common payment options include cash payments, leases, power purchase agreements, and loans. We recommend making a cash payment or securing a solar loan for the highest return on investment (ROI). Cash payments require a hefty sum up-front, but you’ll pay the least long-term by avoiding interest. You’ll also own your system and can apply for solar panel incentives to cut your total costs. Solar loans are another solid option if you don’t want to make a big initial investment. You can pay for your system in monthly installments while still benefiting from energy bill savings and solar incentives. However, you’ll spend more in total due to accruing interest. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) lets you pay a monthly rate based only on the energy you use, as with an electric bill. We generally don’t recommend these two options because you won't own the solar system and are disqualified from using solar incentives. Look for companies that offer several payment plans to find the right fit for your wallet.
The table below lists the average payback periods for different capacities of solar systems in San Luis.
A 26% federal solar tax credit applies to recently-purchased solar equipment purchased through 2032. Extra incentives may be available through local governments, usually in the form of rebates and special financing programs.
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 San Luis
How much money could I save by going solar in San Luis?
How popular is solar energy in San Luis?
Should I anticipate a property value increase after adopting solar power?
How many years will a common solar system last?
How long does the photovoltaic installation process require?
What care do my solar panels need, and how frequently do they need it?
What's the difference between a PPA and traditional financing?
You might consider a PPA if you don’t want to be responsible for maintaining your panels 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.
Should I get quotes from multiple San Luis solar companies?
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