Benefits of Solar Energy
Solar energy provides multiple advantages that will enhance your home for years to come.
- Better energy independence: Photovoltaic solar panel systems with battery storage systems work through power outages and emergencies, and you won't have to depend on the power grid for your safety and comfort.
- Reduced carbon footprint: The sun is a highly abundant clean energy source, meaning you can lower or beat your home's dependence on non-renewable sources.
- Lowered energy bills: You can dodge the added 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 help pay for your energy bill.
What Solar Incentives Are Available to Scottsdale Homeowners?
Arizona homeowners who go solar could qualify for tax credits, rebates, reimbursements and special financing. 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: Green Building Incentive
Website: scottsdaleaz.govIncentive 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 Scottsdale
Choosing a company is the first step toward an effective and valuable solar system. Consider all of these elements in your contractor search.
Licensing and Training
In Arizona, the 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 Scottsdale
The style of solar panels you select dictates how much power you can produce. Monocrystalline panels and high-quality and give you the best performance but cost more upfront. Polycrystalline panels produce less power, but they're worth it if you want a traditional panel style without the high cost. Thin-film panels aren't meant for large home installations, but they're excellent for small projects like sheds and RVs.
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 all solar providers provide these extras, so look for a company that sells them if it's crucial for you.
Generally speaking, it costs about $15,350 for a five-kilowatt solar array in Scottsdale. This table displays more specific pricing information 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 Scottsdale
Choosing the correct financing option will affect your overall solar system cost and possible savings. Common payment options include cash payments, loans, leases, and power purchase agreements. 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 second most effective option. As with a car loan or mortgage, you'll pay a monthly rate towards system ownership, including interest. You can still apply for valuable 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) lets you pay a monthly rate based only on the energy you use, like an electric bill. We usually don’t recommend these two options because you won't own the panels and cannot use solar incentives. Look for providers that offer two or more payment plans to find the right fit for your pocket.
The table below lists the average payback periods for different capacities of solar systems in Scottsdale.
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 dedicated financing plans 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 Scottsdale
How much money could I save by going solar in Scottsdale?
How widespread is solar energy in Scottsdale?
Should I expect a property value increase after adopting solar power?
Could I still use solar power if I live in a wooded, rainy, or dark area?
How long does the photovoltaic installation process last?
What's the average solar system size in Scottsdale?
What is "net metering," and how does it work?
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