Is It Worth Installing Solar Panels In Arizona?

By Author: SolarSME
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Why Going Solar Worth It in Arizona?
Arizona has approximately 300 sunny days per year, hence becoming the sunniest city in the United States. This abundant sunshine is advantageous for those considering solar energy systems, as it ensures the efficient production of clean solar power. However, to get a more precise estimate of the sunlight in your area, you need to calculate its peak sun hours.

One significant benefit of installing solar panels in Arizona is that you can save money on your electricity bills, especially during hot summer months when cooling your home may lead to high electricity costs. You have the option to either reduce your home’s electricity consumption or invest in solar panels. Consulting with a solar specialist can help you determine your energy usage and suggest a solar energy system that aligns with your cost-saving goals.

Also, Arizona offers various solar incentives and tax credits, making solar panels more accessible and cost-effective for homeowners. These incentives include:

Federal Solar Tax Credit:
Homeowners can claim a 30% credit on the total cost of their ...
... solar panel system through the Federal Solar Tax Credit (ITC).

Residential Arizona Solar Tax Credit:
You may be eligible to receive a state income tax credit equivalent to 25% of your solar panel system’s cost, up to a maximum of $1,000, in the year of installation.

Solar Equipment Sales Tax Exemption:
Solar energy systems, including solar batteries, are exempt from sales tax in Arizona.

Energy Equipment Property Tax Exemption:
Installing solar panels in Arizona allows you to increase your home’s value without incurring additional property tax burdens.

Do Solar Panels in Arizona Increase Home Value?
Installing solar panels in a home offers multiple advantages, including saving on energy expenses, contributing to environmental sustainability, and increasing the property’s market value. On a national scale, homes with solar-energy systems tend to sell for an average of 4.1% more than homes without solar panel systems. For a home with a median value, solar panels can increase $9,274 in its selling price. Not only this but these homes also sell faster in the market as well. This is because energy-efficient features are important for more than 80% of home buyers.

Are there any Local Incentives for Homeowners Installing Solar Panels in Arizona?
Arizona State offers local incentives for its residents. These incentives help the residents switch to solar energy with ease. Currently, Arizona ranks fourth among the solar-powered states.

Some of the incentives in Arizona include:

APS Residential Battery Pilot Program:
The residents of Arizona can receive up to $3,750 in incentives when they purchase a home solar battery. It is mandatory to enroll in APS’ Residential Battery Pilot program to avail of these incentives.

SunWatts Renewable Energy Incentive Program:
Arizona’s residents can also gain access to the incentive of five cents per watt (or up to $2,500) for residential and small commercial solar panel systems less than 50 kW in size.

Mohave Electric Cooperative (MEC) Battery Rebate:
MEC offers a solar battery system rebate of up to $500 for the residents of Arizona.

Springs Valley Electric Cooperative Solar Water Heating Program:
If you qualify for solar water heaters, you can get a rebate of 50 cents per annual kWh.

Salt River Project Demand Management System Rebate:
Arizona residents can get a $250 rebate on the purchase and installation of a demand management solar panel system.
Does Net Metering works in Arizona?
Arizona has a net billing instead of a net metering program. It was replaced in December 2016. Net billing is also known as feed-in tariffs.

Net billing is a system in which the utility company credits the customer for any surplus energy generated by their solar panels that is sent back to the grid. However, the key distinction between net billing and net metering is in the calculation of the credits. With net billing, the utility company is not obligated to provide credits equivalent to the full retail rate of energy. Instead, they have the flexibility to determine a lower credit rate, which is at their discretion. Nevertheless, these credits accumulate and can be applied to your future electricity bills, particularly when you need to get power from the grid during nighttime, winter, or times when your solar panels may not produce sufficient energy.

Moreover, The credits you earn through net billing have no expiration date. Once they surpass a specific threshold, usually falling between $10 and $25, as determined by your utility provider, they are paid out annually. The companies calculate these credits on the basis of excess energy your solar panels produce and are compensated at export rates that vary depending on your utility company, typically ranging between 7.81 and 10.45 cents per kilowatt-hour (kWh).

How can Arizona Residents Enroll in the Net Billing Program?
Enrolling in net billing for your solar system typically involves several steps, which your solar installer will assist you with. Here are a few things that you need to keep in mind.

After the installation of your solar system, you’ll need to submit an application for interconnection through your utility company.
Upon approval of your interconnection application, you’ll proceed to sign a net billing agreement that outlines the terms and conditions of the arrangement.
To monitor both the energy you consume from the grid and the excess energy you supply to it, your solar technician will install a bi-directional meter.
Once your solar panels are up and running, you can commence accumulating credits through Arizona’s net billing program.
Why Choose Solar SME?
Choosing to install solar panels and reduce your reliance on utility companies is a significant decision, but it doesn’t have to be a difficult one. Solar SME is a reputable and reliable name in the field of solar energy installation.

We provide robust guarantees to safeguard your investment in solar energy for the long term. Our commitment extends not only to our installation services but also to the high-quality products we use. With our power production guarantee, you can have full confidence that you are making the right choice by partnering with Solar SME for your home’s solar installation needs in Arizona.