Arizona Solar Panels: Pricing and Incentives


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Arizona Solar Panels

Arizona is a leader in solar power generation, producing about 6.5 percent of the nation’s solar power. Both residential and utility solar systems have played a significant role in the state’s leadership over the past two decades.

Keep reading to learn about the benefits of solar power for homes, as well as how SaveOnEnergy® can help you set up your solar system.

Arizona solar panel cost

Solar panels can be a significant financial investment, and it’s important to consider the cost upfront. The cost of solar panels is measured in dollars per watt, and the average cost comes to between $3 and $5 per watt.

The average system has a total price tag of $15,000 – $25,000, but that’s before any tax credits or rebates that can help you save more.

While the cost sounds overwhelming, you don’t have to pay for the entire bill upfront. There are options available to help finance your system, and most people pay their home solar system off in about six to nine years.

Why choose Arizona solar power?

Solar power is becoming increasingly popular for homeowners, and for good reasons. There are several great advantages to investing in solar power.

Lower energy costs 

Installing solar panels on your home can reduce your energy costs significantly. In a state like Arizona, where the sun shines often, your solar system can power your home’s electricity. And when you rely on solar power, you don’t have to pay for the energy you’re using. Solar panels can reduce your energy bill by half.

Establish energy independence 

When you invest in solar panels to power your home, you aren’t reliant on the energy grid. And not only can this energy independence lead to financial savings, but it can also come in handy during times of high electric demand. First, you aren’t subject to steep price increases when electricity rates rise. Additionally, you can keep your lights on when there’s a power outage in your area.

Go green

Solar energy doesn’t just benefit homeowners — it’s also good for the planet. Switching to solar can reduce your home’s carbon footprint, making a small but meaningful difference in fighting climate change. The use of solar power reduces greenhouse gas emissions and helps to keep our air and water clean.

Arizona solar panel incentives or rebates

Federal, state, and local governments have taken plenty of steps to incentivize homeowners to invest in solar power and aim to help reduce the cost burden that comes with it. These incentives can reduce your total costs in both the short term and the long term.

There’s a tax credit at the federal level where homeowners who install solar panels on a primary or secondary residence can claim a 22 percent tax credit. There’s no cap on the amount you can claim, but the tax credit could expire in the coming years unless it is extended. So, if you’ve been considering purchasing a solar system, now is the time to take full advantage of the federal tax credit.

Arizona residents are also eligible for savings at the state level. The Residential Arizona Solar Tax Credit reimburses homeowners 25 percent of the cost of their solar panels up to $1,000. Solar purchases are also exempt from sales and property taxes. You won’t pay sales taxes on your purchase, and you won’t pay additional property taxes for value-added to your home.

Should I buy or lease my solar panels?

When you decide to install solar panels on your home, you’ll have the option to either buy or lease your system. Many homeowners may be tempted to lease since it reduces upfront costs and could have a lower monthly cost compared to financing a system. As another added benefit, you aren’t responsible for any repairs or replacements on your equipment.

Despite the cost savings, there are some serious downsides to leasing your solar system instead of buying. When you lease your system, all of the money spent on lease payments is a sunk cost — you can’t get it back. A purchased solar system can add as much as $15,000 in value to your home, which you’ll get in profit when you sell the house. The same can’t be said about a leased system.

Additionally, you’ll never pay your system off as you would if you bought or financed it. You’ll have monthly payments for as long as you have solar panels, and those payments may not offset your electricity savings. Leasing solar panels also excludes you from being eligible for many of the tax credits and rebates available.

Homeowners who can’t afford to invest in their own solar panels could consider a community solar program. Participants purchase or subscribe to a portion of solar energy, helping them receive the same benefits as buying a solar system. Each homeowner that participates gets a solar credit directly on their electricity bill.

Arizona solar panel companies

As green energy generation — specifically solar energy — becomes more prevalent, so do companies that offer those services. There are several Arizona solar panel companies that can customize and install a residential solar system for your home. Learn more about solar panel installers in Arizona using the resources on this page. After learning about the ins and outs of the solar industry, finding an Arizona solar company is the next step.

The history of solar power in Arizona

Solar power in Arizona dates back to 1997 when the state’s first commercial solar power system was installed in Flagstaff. Just a few years later, in 2000, the state government began laying the groundwork for expanding solar generation by implementing regulatory policies, as well as the Solar Equipment Sales Tax Exemption.

Solar power continued to grow in Arizona, reaching another important milestone in 2006 when the Arizona Corporation Commission increased its renewable energy standard to 15 percent by 2025.

Today Arizona is a national leader in green energy. It’s ranked fifth in the nation for solar energy generation, producing 558k megawatt-hours and 6.5 percent of solar power in the country.  Arizona has seen drastic increases over the past decade in both residential and utility solar installations.

Important solar installation factors to consider

Solar power comes with a lot of perks, but there are a few things you should consider before you make the investment:

  • The state, age, and angle of your roof: The Department of Energy reports that solar panels are best suited for south-facing roofs with a slope of 15-40 degrees. They also aren’t ideal for older roofs that will need to be replaced soon.
  • The amount of sun your roof gets: It’s clear that some states offer more sun than others to power your home, but there are other considerations as well. For example, think about whether trees block your roof from getting regular sunlight.
  • HOA or neighborhood rules: If you live in a neighborhood with an HOA or another neighborhood association, check the rules to learn whether solar panels are allowed and whether approval is required.

Solar power FAQs

How much would solar cost in Arizona?

The price of solar power depends on several factors, including the size and configuration of your system and any labor costs you incur. Systems generally cost between $3 and $5 per watt, with a total price tag of between $15,000 and $25,000 before financial incentives.

Is solar power a good investment in Arizona?

Solar power can lead to significant long-term cost savings. You can save on your monthly electricity bill, as well as add significant value to your home. Whether solar power is a good investment will depend on several factors, including your location, weather patterns, and your energy habits.

How much could I save by investing in solar?

How much you’ll save with solar panels depends on many factors, including how much sun your home gets, as well as your current electricity rates. It’s common for solar systems to reduce a home’s electricity bill by half.

Where can I find a good solar panel installer in Arizona? 

You can use SaveOnEnergy’s solar panel resources to help you learn all about the solar industry. After that, it’s important to do your research into how to find the best solar panel installer in Arizona. 

How does solar power help the environment?

Traditional electricity generation emits carbon dioxide and other greenhouse gasses into the air. Solar power is renewable and doesn’t emit these gasses, meaning you reduce your home’s carbon footprint and help to reduce air and water pollution.

[Millenius] / Shutterstock