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Are solar panels worth it in Arizona?

Are solar panels worth it in Arizona? Blog explains why

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If you reside in Arizona and are considering installing solar panels, you’ve come to the perfect spot to answer your question, “Are solar panels worth it in Arizona?”. In this article we break down how and why home and commercial solar installation in Phoenix Arizona and the surrounding cities throughout all of Arizona is more often than not ABSOLUTELY worth it, and who would make a good candidate for solar.

Home solar installation in Phoenix is at an all-time high. The renewable energy growth rate worldwide grew by 45 percent in 2020, the fastest pace of growth since 1999, and is expected to exponentially increase in the coming years.

Due to its simplicity and low installation costs, solar energy remains the most popular renewable energy among homes.

That’s all well and good, but you want to know… Are solar panels worth it in Arizona??

Solar panel installation in Arizona is worth it, 100% no questions asked. Phoenix, Arizona has a Global Horizontal Irradiation (GHI) average of 5.78 kWh/M2, making it one of the best places in the United States to install residential solar panels on your home.

Is it Really Worth it Vaving a Solar Panel in Arizona

If you’re thinking about whether it’s a good idea to get solar panels in Arizona, here’s something to consider. Arizona gets lots of sunshine, offers tax incentives, and has a good policy for selling excess energy back to the grid. When you add in federal incentives, the cost of a 10 kW home solar system in Arizona goes down from $25,300 to $17,710.

In Arizona, if you put your panels in a sunny spot, they can produce more than 18,000 kWh of energy every year. A 10 kW solar system can save you more than $2,000 on your yearly energy bills compared to regular electricity, which adds up to over $50,000 in savings over 25 years.

How Can You Figure Out If Solar Panels are Worth It In Arizona?


Living in the sunniest state in the nation suggests that solar panels could prove advantageous for both you and your home. Nevertheless, solar power systems may not be universally suitable, necessitating an assessment of your property and an estimation of your anticipated return on investment.

Here are the key considerations to assist you in determining whether solar energy is a viable option for you:

  • Your home’s energy consumption
  • The cost of adopting solar in Arizona
  • Average payback period in Arizona
  • Average buy-back rates in Arizona
  • Your roof’s exposure to sunlight
  • Solar prospects in Arizona

What Should Arizonans Look Out For When Considering Solar?

Seeing whether sunlight based chargers are worth the effort for your house is a major move toward switching over completely to clean energy, yet there are still a few things you really want to think about all through the genuine cycle. We’ll examine a few things you ought to know about as you seek after sun based transformation in Arizona.

  • Forthright charges
  • Recompense periods
  • Net metering arrangements
  • Point of view toward sun oriented approaches and motivating forces
  • Climate and environment
  • Organizations that push funding choices that don’t assist you with
  • expanding your return for money invested.


Forthright Charges
The forthright charges of a sun powered charger framework will constantly be an interesting point, particularly in a space like Arizona, where high energy utilization requests enormous and costly sun oriented exhibits.

You can hold your forthright charges somewhere near limiting the hardware you have introduced — for the most part by staying away from sun powered batteries and other extra items — picking more reasonable sun powered charger marks and getting a no-cash down sun oriented credit.

We’d be neglectful on the off chance that we didn’t make reference to indeed that sun powered leases could appear to be engaging because of no forthright charges, however they are never better compared to supporting or purchasing your gear.

Recompense Period
Each mortgage holder ought to compute the time span in which their boards are supposed to pay for themselves or have a nearby sun powered organization gauge it for them. The sunlight based charger compensation period is a decent mark of how worth the effort sun powered will be for your home and how critical your profit from speculation (return for money invested) will be.

The typical recompense time frame range in Arizona is something like 11 years. In the event that yours is longer, your return for capital invested will be lower, and it will take more time to acknowledge genuine reserve funds.

Net Metering Arrangements in Arizona
Net metering is commanded in many states and eventually assists sun powered clients with lessening their energy bills, take care of their boards all the more rapidly and appreciate more prominent reserve funds over the long haul. Sadly, Arizona Express no longer commands net metering. For the main reserve funds, numerous mortgage holders introduce a sunlight based battery close by their boards.

A sun powered battery will knock up the forthright charges of going sun based yet will by and large assist with saving money on electric bills and immediately take care of itself.

Forthcoming Arrangements and Changes to Motivators
Arizona is as of now a generally sun oriented well disposed state, yet sun based energy reception is just turning out to be increasingly famous. As the generally youthful industry changes and improves, the motivating forces, discounts and sun based arrangements — including net metering — are dependent on future developments.

In a sun oriented forward state like Arizona, the odds are great that things will work on after some time. While you likely won’t profit from hanging tight for better impetuses, you ought to check for any updates to approaches prior to going sunlight based.

Climate and Environment in Arizona
The weather conditions is one of the last things most Arizonans stress over when they introduce sunlight based chargers in light of the fact that the larger part of days will be bounteously bright, which is great for board effectiveness. A few property holders stress over their boards during storm season, yet choosing a sunlight based charger establishment organization that gives a vigorous actual security guarantee is typically sufficient to reassure occupants.

While the productivity of your boards can drop to as low as 10% during those intriguing blustery and shady days, the precipitation will normally wash soil and garbage off of your boards, which will further develop proficiency during the significantly more common bright climate.

Organizations Pushing Sunlight based Leases or PPAs
At last, you ought to be careful about the sun powered installer you pick, as the quality and consistency can differ a lot from one organization to another.

You ought to be watching out for organizations promoting “free boards” or pushing sun based rents or power buy arrangements (PPAs). Renting sun powered chargers frequently appears to be engaging a direct result of the low forthright expense, however it saves undeniably less after some time, doesn’t give you admittance to the government tax reduction and won’t build the worth of your home.

Tragically, in regions like Arizona, where sun powered request is quickly expanding, there have been reports of sun oriented tricks and deceitful organizations. Fox 10 investigated Arizona sun powered organizations that took a huge number of dollars from clients and never introduced equipment.5 The Phoenix New Times has covered comparative tricks happening all through Arizona.6

While you’re picking a sun oriented installer to deal with your home sun powered project, ensure the organization is trustworthy, reviewed and has a background marked by great client care.

Is Arizona Good for Solar Energy?

Arizona is the sunniest state in the whole country, with occupants appreciating north of 300 days of daylight consistently.

It’s nothing unexpected that sunlight based changes in Arizona are for the most part worth the venture, yet numerous property holders see the typical establishment cost of $34,615 — or $24,231 after the 30% government tax reduction — and can’t help thinking about how it very well may merit the forthright charges. Besides, many individuals will contemplate whether their home explicitly will profit from sunlight based transformation.

Beneath, you’ll find a nitty gritty aide on the most proficient method to sort out whether or not going sun powered is ideal for your Arizona home. You’ll likewise discover a few data on the many advantages of introducing sun powered chargers and a things to remember in the interim.

Why Arizona is a Great Place for Solar Panels

Abundant Sunshine

Arizona boasts over 300 days of sunshine per year, making it an ideal location for harnessing solar energy. With an average of 6.3 peak sun hours per day, it receives an abundance of sunlight, making it one of the sunniest states in the U.S.

High Solar Efficiency

Due to its geographic location and low humidity, solar panels in Arizona tend to perform exceptionally well. The lack of clouds and pollution ensures maximum solar efficiency, allowing you to generate more electricity.

State Policies

Arizona has been proactive in supporting renewable energy. State policies and incentives, such as net metering, provide homeowners with the opportunity to sell excess energy back to the grid, leading to savings on electricity bills.

Environmental Benefits

Using solar panels in Arizona reduces the carbon footprint. The ample sunlight and reduced reliance on fossil fuels help combat climate change and contribute to a cleaner environment.

city skyline in phoenix arizona

Benefits of Installing Solar Panels in Arizona

Lower Energy Costs

One of the primary advantages of investing in solar panels in Arizona is reduced energy costs. By harnessing the sun’s power, you can significantly lower your electricity bills, especially during the hot summer months.

Increased Property Value

Homes equipped with solar panels have a higher resale value. Potential buyers are attracted to the prospect of lower energy bills and environmentally friendly homes, making it a wise investment.

Tax Incentives

The federal government and the state of Arizona offer tax incentives and rebates to homeowners who install solar panels. These financial benefits can significantly offset the initial installation costs.

Energy Independence

With solar panels, you can generate your electricity, reducing your dependence on traditional energy sources. This independence provides stability during power outages and rising utility costs.

How Much Solar Panels Cost in Arizona

The cost of solar panels in Arizona can vary depending on several factors, including the size of your system, the type of panels, and installation expenses. On average, the cost can range from $10,000 to $25,000 for a residential installation. However, these costs can be substantially offset by incentives and rebates, ultimately making solar panels an affordable choice.

Arizona gets roughly 4.8 kWh/M2 on average. If you’d want to view your specific peak sunshine hours, though, we suggest looking at the map below:

 

peak sunshine hours around the united states of america

 

Why might knowing the peak sunshine hours in your location be useful to you?

This information (together with your power use) is crucial in determining the size of the solar system that would best meet your requirements.

You also need to know how much a solar system will cost and how long it would take to return your initial investment.

Once you have this information, you can determine if solar panels are appropriate for your scenario, thus answering the question for you – “are solar panels worth it in Arizona?”

Can solar panels save you money?

Following Are the some points how solar panel save your money.

  • Slash Your Electricity Bills: Harness solar energy to reduce monthly electricity costs and enjoy significant long-term savings.
  • Boost Home Value: Elevate your property’s appeal and resale value by investing in sustainable solar technology.
  • Shield Against Energy Cost Hikes: Safeguard your budget from fluctuating energy prices with the stability of solar-generated power.
  • Earn for Your Excess Energy: Turn your solar panels into a revenue stream by contributing excess energy to the grid and receiving credits or payments.
The payback period for a solar panel system in Arizona typically ranges from 6 to 8 years. After this period, you’ll start reaping the full financial benefits as your energy bills decrease, and you may even generate excess electricity to sell back to the grid.

What Is Your Electricity Consumption?

First and foremost, you must determine your monthly power use. To calculate your monthly use, look at your yearly power statement and divide the kWh usage by 31.

In Arizona, the average monthly usage is 1,140kWh.

Financial Incentives for Solar Panels in Arizona

Federal Tax Credits

Homeowners in Arizona are eligible for a federal tax credit, which can cover up to 26% of the total installation cost. This credit significantly reduces the financial burden of going solar.

State Tax Credits

The state of Arizona also offers tax credits, with potential savings of up to $1,000 for solar panel installations.

Net Metering

Arizona’s net metering policy allows you to earn credits for any excess electricity you generate and feed back into the grid. These credits can be used to offset future energy bills.

Which Solar Panel Manufacturer Should You Pick?

Your solar panel system’s ultimate cost will be influenced by the solar panel brand you choose. We’ve included a table below that breaks down the cost per watt for all solar farms in the US.

Keep in mind that you will not need a huge solar system. All you’ll need to balance your energy use is likely a 2.5 kW solar system.

Further down in the post, we’ll show you how to calculate exactly how many solar panels you’ll need for your house. If solar panels cost less than the estimates below, they are likely to be worthwhile for you.

Things to Consider When Installing Solar Panels in Arizona

Choosing the Right Installer

Selecting a reputable and experienced solar panel installation company is crucial. Ensure they are licensed, bonded, and have a proven track record of quality work.

Panel Placement

Proper panel placement is essential to maximize energy production. South-facing panels generally receive the most sunlight, but a professional installer can assess your specific situation.

Maintenance

Solar panels require minimal maintenance, but regular cleaning and occasional inspections are necessary to ensure they function optimally.

Homeowners Association Rules

Check with your homeowners association for any rules or restrictions regarding solar panel installations.

Shading

Consider potential shading issues that may affect the efficiency of your solar panels. Trim trees or remove obstructions if necessary.

How Long Does It Take for Solar Panels to Pay for Themselves?

In Arizona, how long until solar panels pay for themselves?

This is determined by how much power you use each month and the size of the solar system you purchased.

The average monthly power use in Arizona is 1,140kWh. In Arizona, the average cost per kWh is 12.3 cents per kWh.

As a result, the typical Arizona house may expect to spend $140.22 per month for power.

To balance this level of use, you’d require a 7.6kW (7600 watts) solar system, as previously mentioned. A 7.6kW solar system would cost roughly $18,000 in total (before rebates and tax incentives – which can offset up to 50%!).

Residential customers in Arizona are eligible for a 25% tax credit on purchasing and installing solar systems. And the federal solar tax credit is currently at 26% until the end of 2022!

As a result, the total cost of your solar system would be $8,820.

1,140 kWh (per month) x 12 months = 13,680 kWh per year

13,680 x .123 (avg cost per kWh) = $1,682.64 electricity cost per year in Arizona

$8,820 (rough cost of 7.6kW solar system after tax incentives and rebates) / $1,682.64 = 5.24 years for the system to pay for itself!

As we all know, electricity rates continue to increase, so at a minimum, in this instance, it will take just over 5 years for your solar panel cost to pay for itself. 

Solar panels typically endure between 25 and 30 years.

This translates to over 20 years of free electricity and a savings of over $33,000 during that period!!

Conclusion

In conclusion, the decision to install solar panels in Arizona is a wise one. With its abundant sunshine, high solar efficiency, and numerous financial incentives, it’s clear that solar panels are not only worth it but also an excellent choice for homeowners in the Grand Canyon State. By reducing energy costs, increasing property value, and contributing to a cleaner environment, solar panels in Arizona are a win-win investment that benefits both your wallet and the planet. Make the transition to clean, renewable energy today and enjoy the long-term advantages of solar power in Arizona.

Do you reside in Arizona and are interested in taking the next step to get a free solar panel evaluation and quote?  We would be honored and love to help you – click here to contact us.  As one of Arizona’s first, most experienced and best solar installation companies we are a trustworthy source of quality workmanship with solar panel installations that are built to last a lifetime.

Frequently Asked Questions

This question addresses the specific advantages of solar panels in Arizona, such as cost savings, environmental impact, and suitability given the state’s climate.

This question explores the impact of Arizona’s unique weather patterns and abundant sunshine on the performance of solar panels.

This question provides information about state-specific incentives, tax breaks, and rebates that make solar panel installation more affordable in Arizona.

This question addresses the potential cost savings, a key consideration for many when deciding whether to install solar panels.

This question delves into the types of solar panels most suitable for Arizona’s climate and residential structures.

This question discusses the return on investment and how long it typically takes for the savings to offset the initial costs of installation.

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