Getting Started with Solar Panels in Phoenix, AZ: A Quick Guide

hen you think of Phoenix, AZ, you might picture the blazing desert heat and abundant sunshine. It's only natural to assume that the sun-soaked city would be an excellent spot for utilizing solar power. As the demand for renewable energy sources continues to grow, many homeowners in Phoenix are considering whether installing PV panels is a smart investment. This article will explore the viability of going solar in Phoenix, examine available incentives, and list some leading installers.

Should you install solar panels in Phoenix, AZ?

It's no secret that Phoenix, AZ, is renowned for its sunny weather. With more than 300 days of sunshine per year, it's no wonder that the city has been dubbed the sunniest in the United States. Given this climate, it's natural that residents are considering solar power as a viable energy source.

Despite having more than 6,100 MW of solar power installed, Arizona is not considered a top state for solar adoption. Actually, it only ranks fifth in the country for installed PV capacity. While this amount of solar energy could power almost 1 million homes, it's still significantly less than what Texas and California have. However, Arizona is making significant strides in solar. The state has passed legislation that mandates the industry to be 100% renewable by 2050 under the renewable portfolio standard.

If you're a Phoenix homeowner, you may wonder if you should jump on the solar bandwagon. The answer is yes - you should at least consider it. After all, Arizona residents pay much more for electricity than the national average. The U.S. Energy Information Administration (EIA) reports that Arizona's average monthly electricity bill is $131.35, compared to the national average of $121.01. With solar panels in Phoenix, you can reduce your electricity bills by a considerable amount.

Additionally, solar is a clean and renewable power source that does not produce any greenhouse gases, making it an eco-friendly alternative. For a city like Phoenix, where air pollution is a primary concern, the installation of PV panels can make a significant impact on reducing the overall carbon footprint.

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Solar incentives available

Phoenix residents have the opportunity to reduce the cost of their photovoltaic installation through a range of incentives, including the Federal Solar Investment Tax Credit (ITC). With this credit, you can subtract 30% of the expense of a PV system installation from your federal taxes. This tax credit will stay at 30% until 2033, after which it will be reduced to 26%. The ITC applies to both residential and commercial installations, and there is no limit on its value.

While the ITC can be utilized by any homeowner across the country, Arizonans have the added advantage of several state and local financial incentives that make solar even more cost-effective. For example, the Arizona Residential Solar Energy Tax Credit allows residents to claim a tax credit of 25% of the value of their installed PV system, up to $1,000. You can apply for this credit once, at the time of filing your taxes for the year when the system was installed.

Arizona's Solar Equipment Sales Tax Exemption benefits solar buyers by exempting PV panels from the state's 5.6% sales tax, leading to instant savings on equipment purchases. Additionally, photovoltaic installations that increase the value of a home are not subject to property tax thanks to the Energy Equipment Property Tax Exemption.

Cost of installing a PV system

Solar panels in Phoenix usually cost around $2.44 per watt. A photovoltaic system with a typical size of 6 kW will cost between $12,440 and $16,800. On average, the cost of Phoenix solar installation is $14,640, not including any incentives. Applying for ITC will bring the price down to $10,250, and you can also take advantage of multiple state and local incentives to lower it by a few thousand dollars more.

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Top-rated Phoenix solar installers

With hundreds of installers to choose from, picking the right solar company in Phoenix AZ may require some effort. Here’s a short list of the most trusted installers you might want to consider.

SunPower

The company offers solar panels with the highest efficiency and comprehensive technical and customer support. Homeowners can choose from several options for solar loans, leases, and outright purchases. The company provides a 25-year warranty for workmanship and system performance, and its modules are sustainable and have in-built microinverters that facilitate quick and easy installation. On the downside, SunPower only offers its own equipment, so you cannot opt for other brands.

Harmon Solar

For those who prioritize supporting a locally-owned business, this company is worth considering. A Phoenix-based installer has a 10-year workmanship and roof warranty, and its team includes certified structural engineers and licensed electricians with ample experience installing both roofing and PV. You can opt to purchase or lease a solar system from them. Harmon is an authorized installer of Tesla PowerWall batteries and also supplies Sonnen and Enphase batteries. When it comes to inverters and panels, customers can choose from Enphase, Fronius, SMA, REC, and Silfab.

Sunny Energy

Another Phoenix-based company, Sunny Energy comprises four experienced solar and construction professionals, including a Master Electrician. The team's primary focus is designing customized solar systems that fulfill each customer's needs. The company is authorized to install a variety of products, such as SolarEdge, REC, and Generac. Additionally, it holds an A+ rating from BBB and an Arizona Specialty Dual CR11 Electrical license.

Sources:

https://www.seia.org/state-solar-policy/arizona-solar

https://www.seia.org/research-resources/top-10-solar-states-0

https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf