The Guide to Going Solar in Phoenix
Why Go Solar in Phoenix
One of the sunniest cities in the world, the city of Phoenix receives an estimated 4,000 hours of sunshine every year. Install solar panels in Phoenix if you’d like to see all that sun decrease your electricity bill and give you energy independence.
In 2020, the state of Arizona was ranked 5th nationwide in terms of total installed solar capacity…4,765.73 MW to be exact.
That’s quite a lot of solar power to go around. And it means the potential to produce your own solar energy with solar panels in Phoenix is arguably greater than ever.
What Are the Best Solar Incentives in Phoenix?
Phoenix has numerous credits, programs and incentives for solar customers, including:
- Property Tax Exemptions and Assessments — Your solar panels in Phoenix will increase your home’s value and they’ll be exempt from property taxes. Even better, they will be significantly reduced in property tax assessments.
- Sales Tax Exemptions — Not only are your solar panels exempt from sales tax but your Renewable Energy Credits (REC’s) will also be exempt from sales tax assessments.
- Utility Rebate Programs — Homeowners in Phoenix who are also customers of Salt River Project (SRP) can receive rebates for energy efficient appliances and solar batteries.
- Federal Solar Tax Credit — Receive a 26% Federal Tax Credit from the United States government toward the entire cost of your solar panel installation; including a backup battery.
- Net Billing — Sometimes your solar panels will produce more electricity than your home will need. Receive credits from the utility company for the excess energy produced by your panels.
- Solar Rights — The law in Maricopa County protects individual homeowners who want to install solar without interference from property deeds or neighborhood restrictions.
Rising Electricity Prices in Phoenix
While electric prices in Phoenix and surrounding areas of Arizona are just below the U.S. average, the state of Arizona as a whole ranks as the 2nd highest prices in the western states after California.
Unfortunately, prices in Phoenix and the rest of the U.S. are only expected to climb. In fact, residential electricity costs are projected to rise between 1.2% and 2.8% in 2021; continuing a decade-long streak in climbing prices for electricity.
Worse still, the fragile grid is only getting more delicate and increasing in demand. Climate change is requiring more power for heating and cooling. More electric cars are hitting the road. Meanwhile, the demand for residential electricity is increasing as more people continue working from home. It should come as no surprise that electricity costs are expected to rise dramatically.
With no alternative source of energy to power your home, you could be paying for electricity for the rest of your life — at higher rates every year. Or worse, whatever the electric company decides to charge. By contrast, the cost of solar is lower than ever before.Start Saving Today
Are Solar Panels Expensive in Phoenix?
The upfront price of solar panels can seem expensive to a lot of people, but there are many things that determine the final amount. Odds are, the cost will be much less than you expect.
For one, there’s the number of panels in your installation. Second, you have to consider the incentives and credits that are in place in your state and community. If you live in Phoenix, this is great news for the cost of your solar system.
A Sunpro Solar Specialist will help you break down the costs in more detail, but it doesn’t take a specialist to know this much is true: as electricity prices rise, so will your bill from the electric company — especially as fossil fuels become less available.
Even when you finance your solar panels, your monthly payment is fixed and not vulnerable to price jumps. With things like net-metering, solar tax credits and rebates, you may end up making money in the long run.
Let’s break down the reasons why solar panels are actually more affordable in Phoenix.
Federal Solar Tax Credit in Phoenix
The federal government of the United States is offering a 26% Solar Investment Tax Credit of the entire cost of your solar system, including a backup solar battery to deduct from your federal taxes.
When you decide to go solar in Arizona, take advantage of the 26% tax credit through the end of 2022. The Solar Federal Tax Credit for homeowners with solar power will drop to 22% in 2023.
While this credit from the US government is available in Phoenix, a Sunpro Solar Specialist can help you take timely advantage of this incentive.
Phoenix Solar Tax Exemptions and Assessments
A substantial reason for solar being so affordable in Phoenix is the opportunity for tax exemptions on the sale of panels and on your property.
Let us explain:
Solar Sales Tax Exemption
If you’re worried about the cost of solar panels keeping you from installing panels on your roof, Phoenix has sales tax exemptions to help cut down the costs.
Your purchase of solar panels and equipment will be exempt from sales tax. Even better, Phoenix also exempts sales tax from being applied to renewable energy credits (RECs).
Property Tax Exemption
Another unique tax exemption in Phoenix is the energy equipment property tax exemption. This exemption means that your property taxes will not increase when you get solar panels installed on your home.
The property tax exemption that is offered statewide in Arizona applies to your rooftop solar panels as well as solar battery storage like the Tesla Powerwall. Produce solar with your panels and store the energy in your solar backup batteries. And when your property is assessed for tax purposes, your solar energy installation will be exempt.
Property Tax Assessment Incentive
When determining property tax, there are incentives for businesses and even utilities who incorporate solar panels into their facilities.
Solar energy equipment and other renewable energy equipment owned by commercial and municipal entities in Phoenix are assessed at just 20% of the “taxable original cost” after depreciation is deducted.
Is the Arizona Solar Energy Credit Available in Phoenix?
The answer is a resounding, yes! Arizona’s Solar Energy Credit is available to individual taxpayers who install a solar at their home or residence in Phoenix.
This incentive for going solar in Phoenix makes for an amazing income tax credit. Offering just the right boost, Arizona’s solar energy credit is equal to 25% of the cost of your solar system, up to $1,000 regardless of the amount of solar energy devices.
You can even carry over the excess credit to the next year should you owe less in income taxes than the credit amount. In fact, you can carry unused credits for up to five years!Start Saving Today
Does Phoenix Have Net Metering?
In 2016, the state of Arizona replaced their net metering law with something called, net billing. Also referred to as a feed-in tariff, net billing means that you receive a credit from the utility company for the excess energy you export to the grid from your solar panels.
Here’s a quick point of difference between net billing and net metering: the credits you receive from the utility company do not have to necessarily equal the retail rate for energy. Even though the rate is determined by the electric company, net billing means that you receive credits on the energy you aren’t using.
The way we see it, it’s better than paying for the energy you aren’t using.
Which Phoenix Utilities Offer Solar Rebates?
Salt River Project (SRP) offers the predominant solar rebate of all the utility companies in the Phoenix area. SRP’s Battery Storage Incentive Program is designed to encourage residential SRP customers to add a battery storage system to their homes. In return, SRP will give you up to $3600!
Keep in mind that this incentive has been in place since 2018, and it has a cap of 4500 customers. The first-come, first-serve basis means you need to act fast if you want the rebate.
Adding a battery makes it easy to store your unused or extra energy from your solar panels. With this rebate from SRP, you have the opportunity to pay bottom dollar for your battery. With the right net billing in place, you could end up with a noticeable payout.
Want to learn more? Read why we think a battery is worth it.
An important note: this program works with all SRP residential electric price plans except for M-Power.
Solar Rights in Phoenix and Maricopa County
A common concern for homeowners, solar restrictions, shade coverage limiting the size, placement or production might have you worried about the solar system you want to install.
In Arizona, and specifically Maricopa County, the law protects the property rights of individual homeowners who want access to solar. The law dissolves any local agreement, unreasonable restriction or deed of a property that make it difficult to use or produce solar energy.
As a solar homeowner in Phoenix, it’s encouraging to know that the local and state governments support and defend your decision to power your home with clean renewable energy.
Sunpro Solar, Trusted Solar Company in Phoenix
Since 2008, Sunpro Solar has demonstrated a proven history and reputation for providing quality service, and was ranked #5 for 2020 Solar Power World’s Magazine Top Residential Solar Installer in the United States. We are proud to offer some of the best warranties you can find in the solar industry and only use products that offer the same.
- 25 Year Labor Warranty
- 25 Year Production Guarantee
- 25 Year Solar Panel Manufacturer Warranty
- 25 Year Enphase Microinverter Warranty
- Thousands of happy homeowners
- Free Home Energy Audit
- Roof replacement if needed
Solar Panel Quote for Homeowners in Phoenix
If you’re ready to take the next step, or even if you’re considering what it would take to get you there, contact us to discover all your options.
We install solar and roofs in Phoenix, Maricopa County and surrounding areas. Contact us today to see if we service your area and get free solar quotes for your particular needs.Start Saving Today
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“They showed up on time to install our solar panels on our roof. They finished up installation in one day and made sure everything was clean and explained in the next steps. I can’t wait to have our panels turned on so we can start saving.”
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