Solar Panels Arizona Guide: Costs, Incentives & Best Installers Revealed
Solar Panels Arizona Guide: Costs, Incentives & Best Installers Revealed
Blog Article
solar panels arizona are more affordable and rewarding than ever—here’s everything you need to know.
- Average system price: A standard 5 kW system costs about $10,223 before incentives—around $2.04 per watt
- Typical range: From $8,690 to $11,756 pre-incentives
- Larger systems: A 13.2 kW system (to cover full home demand) averages $27,037 pre-incentives
Incentives: max out your savings
- Federal ITC (Investment Tax Credit) – 30% off your total system cost, valid through December 31, 2025
- Arizona Solar Energy Credit – 25% state tax credit up to $1,000
- No sales or property taxes – AZ exempts solar purchases from state and local taxes
- Net metering – Surplus power credits offset utility usage; policies vary so check with APS or TEP
Example calculation: A $20,000 system with a $1,000 utility rebate nets a 30% ITC ($5,700) plus an additional $1,000 state credit and no sales tax—your actual cost drops significantly.
solar panels in arizona: Is It Worth It?
- Payback period: ~11 years for a 5 kW system; lifetime savings over 25 years can reach $32,649
- Return on investment: EnergySage data shows homeowners can replace 99% of grid electricity
- Generation capacity: Arizona ranks 4th in national solar power output, with a 39% year-over-year increase
- RPS compliance: AZ mandates 15% renewables by 2025, including distributed solar sources
installing solar panels in arizona: Steps & Considerations
- Choose system size (5 kW covers ~996 kWh/month; adjust based on usage)
- Request quotes—compare installers via platforms like EnergySage to save up to 20%
- Permits & installation – 3+ months typical; must be operational by Dec 31, 2025 to claim the ITC
- Claim credits – File IRS Form 5695 for the federal credit. Use AZ Form 310 for state credit.
- Activate net metering – Register with your utility provider to earn credit on excess production.
az solar panels: Top Benefits
- Slash your electricity bills long-term—often paying less than your usual monthly bill
- Boost your home's resale value and cushion against rising grid rates.
- Contribute to Arizona’s clean-energy goals—supporting local jobs and sustainable growth.
- Potential pairing with solar battery storage and EV charging yields complete energy independence.
arizona solar panels: Don't Wait!
Federal credits expire end-2025—and proposed new bills could further reduce incentives Now is the time to act.
Conclusion
Installing solar panels Arizona isn’t just smart—it’s strategic. Between the 30% federal ITC, 25% AZ state credit, tax exemptions, and net metering, your investment pays for itself in just over a decade—while contributing to a greener future. Report this page