Benefits of Solar Energy
Solar energy offers multiple perks. Here are some highlights.
- Reduced carbon footprint: Solar is one of the universe's most abundant clean energy sources, meaning you can lower or beat your home's dependence on non-renewable sources.
- Lowered energy bills: You can skip the expensive cost of grid-tied power by creating some electricity at home. Plus, many states offer net metering which can allow you to sell your unused energy back to credit part of your bill.
- Better energy independence: Solar panel systems with battery backups and storage systems work through blackouts and emergencies, and you won't have to depend on your power company for your safety and comfort.
What Solar Incentives Are Available to Tempe Homeowners?
Arizona's public agencies and power companies offer multiple solar incentives to help cut your solar system costs. Check out a breakdown of eligible 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: 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 Tempe
The cost and efficacy of solar panels often hinge on the provider that mounted them. Make your choice based on the following important considerations.
Licensing and Training
In Arizona, the Registrar of Contractors grants distinctive 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. Solar installers can also pursue certificates from standards organizations and trade groups. The most respected ones in the industry come from the North American Board of Certified Energy Practitioners. Most company websites will prominently display earned credentials, but you should also ask your estimator for more information.
Cost of Solar Panels in Tempe
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 provide a lower price point but produce less power. 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.
Additional system add-ons, such as battery storage and electric vehicle (EV) chargers, will add to your overall installation costs. However, they might make your solar system more efficient and convenient to use. Not all solar contractors include these optional components, so look for a provider that installs them if it's crucial for you.
You can plan to spend about $15,350 on average for a five-kilowatt solar energy system in Tempe. Check the table in this section to get an idea of how much Tempe solar companies might quote for your specific solar system's price.
| 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 Tempe
Solar providers 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. 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 next best 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 let you use your panels for a set monthly rate, while PPAs let you pay only for the energy you use, akin to 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. Ask each company you're vetting about the payment options it offers. A representative can help you determine the best option for your financial situation.
The table below lists the average payback periods for different capacities of solar systems in Tempe.
The IRS allows you to claim a 26% federal solar tax credit on total system costs, so long as you purchase it before 2032. City and state governments and utilities might also offer their own rebates, incentives, and financing programs that could save you more money.
| 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 Tempe
How much money could I save by going solar in Tempe?
How popular is solar energy in Tempe?
Will a solar PV system increase my Tempe home worth?
What if I live in a dark or heavily-wooded
What's a Tempe solar panel's average lifespan?
How long does the solar installation process require?
What is "net metering," and how does it work?
How many estimates should I get before making a final solar company decision?
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