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Are Solar Panels Worth It in Arizona?

Free Solar QuoteIf you’ve been considering going solar and you live in Arizona, you may just be onto something. The number one reason solar panels are worth it in Arizona is due to all the glorious sun Arizona gets each year.

In fact, Arizona is home to a few of the sunniest cities in the entire world averaging around 4,000 hours of sunshine each year. That means switching to solar energy if you live in Arizona is a bright idea. And you wouldn’t be alone.

As of 2020, Arizona currently ranks 5th in the country in terms of total installed solar capacity at 4,765.73 MW.

Let’s go over the top reasons why switching to solar energy in Arizona has never been a better idea. First, let’s start with a snapshot of the state of electricity in Arizona.

The Rising Cost of Electricity in Arizona: Take the Power Back

You may not have noticed how much your utility company drives up electric prices each year.

The worst part is that you’re at the mercy of what they want to charge you. And this isn’t going to stop in the future as the amount of fossil fuel energy continues to deplete.

While Arizona’s electric prices are just below the U.S. average, Arizona ranks as the 2nd highest prices in the western states after California.

So what can you do about it? Installing solar panels on your home frees you of being completely under the electric company control. And you can put all that Arizona sunshine to work for you.

Why Go Solar in Arizona?

Here are a few other important reasons people in your area are switching to solar energy, and why now is a great time to switch.

  • Save the Environment – Now is even more important than ever to find ways to reduce impact on the environment. Installing solar panels offers you energy self-sufficiency and decreases your carbon footprint. Do your part for the environment while freeing yourself from high electric bills.
  • Decreasing Costs – The costs of solar panel installations have come down significantly. There are plenty of ways to switch to green energy for your home that works for your budget. Our Solar Energy Specialists are trained to help you make sense of it all and help you figure out a plan that works for your specific needs, as well as average costs for switching.
  • Solar Technology Improvements – Solar technology has made huge strides in efficiency and longevity too! More efficient solar panels mean that each square foot of solar panel can produce even more solar power. This is extremely important for rooftop installations with limited space for solar panels.
  • Solar Powered Battery Storage – If you’re concerned about power outages, now is a great time to consider a solar battery backup as an add on to your solar panel system. Solar battery technology is pretty cool these days and it’s worth checking out to see if it makes sense for your home. Solar energy batteries, like the Tesla Powerwall, will take any extra solar power your panels produce and store it for you to use later. So even when the sun goes down, your home can run on clean, green energy using your batteries.

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How much do solar panels cost in Arizona in 2020?

Concerned about the cost of going solar this year? There are a few great incentives that are specific to the state of Arizona that make solar panels affordable. In fact, Arizona has some of the best solar incentives in America.

Add these to the federal tax credit and net metering (called net billing in Arizona), and you’ll be going solar in no time.

Let’s break it all down.

Arizona Solar Energy Credit

The first incentive for going solar in Arizona is a pretty significant income tax credit. This credit is equal to 25% of the cost of your solar system, up to $1,000.

And don’t worry, if the amount you owe in income taxes is less than the amount of your credit, the excess credit can be carried over to the next year.

Arizona Solar Tax Exemptions

Arizona is also known to have two different tax exemptions for going solar.

  1. Solar sales tax exemption

Not only will your solar equipment be exempt from sales tax, but it also exempts sales tax from being applied to renewable energy credits (RECs).

  1. Property tax exemption

The energy equipment property tax exemption in Arizona means your property taxes will also not increase when you get a solar PV system installed on your home.

Solar Federal Tax Credit

The Solar Investment Tax Credit (ITC) offered by the United States federal government is available to Arizona home and business owners. This incentive provides a 26% tax credit of the entire solar system cost, including a battery system.

To take advantage of this federal income tax credit, you need to act fast! In 2021, this tax credit will drop to 22% of the total solar power cost. From 2022 onward, no federal tax credit will be available to homeowners.

Does Arizona have a net metering law?

Arizona has a law similar to net metering called net billing. Arizona replaced their net metering law back in 2016 with net billing, otherwise known as a feed-in tariff. What this means is that you as a customer will be credited for any excess energy exported to the grid.

The difference between net metering and net billing is that the credits the utility company offers does not have to equal the retail rate of energy. While this leaves the rate up to your electric company, it still means credits back to you for any unused energy your home produces.

By the way, one way around this is investing in a solar battery to save the extra energy your system produces.

Read: Is the Tesla Powerwall Worth It?

Arizona Solar Rebates

In addition to all these tax incentives and net billing, the state of Arizona also offers a few solar rebates through the local utility companies.

Here are a list of participating utility companies in Arizona:

Mohave Electric Cooperative – Renewable Energy Incentive Program Utility Rebate Program
Duncan Valley Electric Cooperative – SunWatts Rebate Program Utility Rebate Program
Salt River Project Battery Storage Incentive Program Utility Battery Rebate

Will solar panels increase the value of my home in Arizona?

Great news if you live in Arizona: getting solar panels installed on your home will likely increase the value of your home.

In recent findings, an Arizona housing expert Mike Orr, an analyst with Arizona State University’s W.P. Carey School, reviewed recent solar home sales in Arizona.

His findings: Solar systems purchased by the owner do add value, while leased solar systems can detract from a value or sales price.

So unless you’re planning on leasing your solar panel purchase (which we don’t recommend), solar panels will likely increase the value of your home in Arizona by as much as 6%.

Says Orr: “I think it is fair to suggest that an owned solar system can add 4 to 6 percent to the value of a house.”

Save money by installing solar panels in AZ

Now you’ve seen how installing solar panels on your home in AZ can save you money, as well as provide an investment for freedom from your utility company, what are you waiting for?

Now is never better to reduce or eliminate your electric bill, as well as increase your home value, and reduce your environmental footprint.

Installing Solar Panels In Arizona

How do you choose the right solar contractor in Arizona? Here are a few tips and things to look out for.

Choosing a solar contractor for your area can be intimidating, which is why it’s helpful to remember the three most important tips when choosing a solar panel company.

  1. Make sure the company you’re choosing has warranties in place. Not only on the labor, but products as well. That way you know you and your investment are protected in the years to come.
  2. Read reviews about the company you’re choosing. While you’ll see a bad review here and there (just the nature of open reviews), make sure a large majority of the reviews aren’t negative and stating the same problems over and over. That’s a clear indicator of a company to stay clear of, no matter how well known their name is.
  3. Choose a reputable company that’s been in the game for awhile. Again, this way you are sure to protect your investment with a company that will continue to be there for you in the years to come.

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Sunpro Solar, Trusted solar company in Arizona

Since 2008, Sunpro Solar has 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.

Solar Panel Quote for Arizona Residents

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 and surrounding areas. Contact us today to see if we service your area and get free solar quotes for your particular needs.

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See What Our Customers Are Saying

Daniel Colina – ⭐⭐⭐⭐⭐

Google Review

“I decided to go with SunPro after speaking with multiple Vendors and couldn’t be happier. Paul was incredibly helpful and was always available for a phone call if I had any questions. I never felt like I was being over sold and Paul was very upfront about what he could or couldn’t do. Once I signed the paper work I was surprised at how quickly solar was installed. The installation team (All SunPro Employees) were very professional and FAST.”

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3420 E. Shea Blvd, Suite 200
Phoenix, AZ 85028

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