Phoenix AZ has a recorded 300 days of sun a year. This sunny fact of course makes Phoenix ideal to become one of the leading solar cities in the U.S. And it is on track to do just that.
Right now (as of May 2015) Arizona solar power is thriving. The state of Arizona ranks second in the country in installed solar capacity.
As well as being good for the environment and your pocketbook, solar is also a fantastic boost for the local economy. With about 400 solar companies and more than 8,000 related employees in AZ., you can see what a great impact this industry has on your state.
Solar Power in Phoenix, AZ: Cost vs Savings
Right off the bat let us show you how much money you could potentially save every month with your new solar system in Phoenix.
• Upfront costs: between $16-18k.
• Refunds: of $6000-8,000 in incentive rebates.
• Equaling an estimated $40-60 in savings a month, close to $700 a year, on your electricity bill.
• Helping earth: Priceless.
*Every single home is different; your home might offer even greater savings. The above is just an estimate.
Return on your Solar Investment in Phoenix, AZ
For an average PV system of 5KW, the time it will take you to cover your investment in Phoenix AZ is about 7 years.
However in Phoenix, and in other locations in Arizona, there is a battle of power between solar companies and utilities companies.
The utilities don't like the fact that customers leaving them and producing their own electricity. They particularly don't like the "Net Metering" scheme.
In net metering, if energy produced by a rooftop PV solar system is greater than what the homeowner uses in a month, the excess kilowatt hours produced are transferred to the utility and credited to the your account.
So now, all of a sudden, instead of you paying the Utilities, they need to pay you!
So of course, they don't like it. And they will do what they can to change things, and slow down the spread of solar. In the long run, they will not succeed, as solar in Phoenix is proving to be cost effective, not to mention the fact that it is CLEAN energy generation.
Phoenix, AZ solar benefits: Incentives, Tax Breaks and Rebates
Phoenix Solar Tax Credits
This incentive is personal tax credit versus an outright deduction. The credit amount allowed against your personal income tax is 25% of the cost of the PV system with a $1,000 maximum.
The system has to be installed at your home. If you are able to take advantage of this, it can be a dollar-to-dollar amount off your taxes against a portion of the cost of the system. (Please note: no accountants here on staff thus it is best to consult a tax professional before acting on the information related to taxes.)
The availability of personal tax credits for solar energy was sourced from the Database of State Incentives for Renewables and Energy Efficiency.
Phoenix Property Tax Exemption for Solar
Once you install solar panels in Phoenix (this applies to the whole state of Arizona too) your solar purchase is exempt from higher home taxes due to the increased value of your property.
The exemption is for 100% of the increased value of the property from installing eligible energy systems. This is true for residential, commercial and industrial properties. For an average-sized solar power system, this can add $20,000 to your home’s value.
Phoenix Solar Sales Tax Exemption
You will be exempt from sales tax on your solar purchase!
Yet another great incentive from the local authorities in Phoenix, to keep helping the solar panel installations process for its residents.
Solar Panel Installation in Phoenix AZ: Process & Quotes
You’ve now gotten the basic facts and are ready to take the first steps.
Let’s look at how the quote and installation process is handled:
1. The first step would be to fill out the Phoenix Solar Panel Installation form giving us the basic 411 regarding your home or property.
A follow-up call from our staff will come next to get as many of the nitty-gritty details that we can so that our home visit is 100% efficient.
2. Next, the installers will meet you at your home, take measurements, (hopefully have a coffee break with you), assess the best options and answer all of your questions.
Your local solar installer will bring an aerial photo of your house with an initial layout of solar panel modules that best fit your home.
• Confirming the utility company you use.
• Reviewing a typical summer electric bill.
• Getting a summary of usage history (easy to get from your supplier).
• Confirming the utility company you use.
3. The bottom line: here is where you get the quote. After adding up each element of your situation, including the utility bill, all the tax breaks, rebates and incentives available and provide you with a final price quote for your installation.
4. You’re now the proud parents of a gorgeous solar panel system.
Congratulations! Typically, setting up the system on your roof should take about 3-4 days.
Follow-up is also included to train you and your family how to best use the system and feel completely comfortable with your new addition.
Now you can relax, enjoy your savings (as well as increase in your property value), and the fact that you did something small, but very meaningful in helping our environment.
What about Solar Financing Options in Phoenix AZ?
The financing of your new energy system occurs through basically two choices:
1. A lease where you pay for the use of a solar system.
2. A power purchase agreements (PPA) where you pay a specific rate for electricity that is generated every month.
The Lease Agreement
Just like your car lease or a home mortgage, a solar lease means you pay the developer for your system over a long term period (typically 20 years).
You can work out the deal so you pay no upfront costs or where you include a down payment. You can also work in the option to buy the system at the end of the term.
Now, while you have a drastically cut back power bill, you also have a solar lease payment. But overall, this payment added to your existing power bill will be lower than your previous bill, earning you monthly savings.
The Power Purchase Agreement (PPA)
With this option a solar company installs a system on your Phoenix AZ property at no cost.
The use of this solar PV system now offsets your electricity bill and the developer gets to sell this power to you at a fixed rate, which is usually lower than your normal bill. Once the PPA contract has been fulfilled, you have the option to extend it or buy the system outright.
A typical PPA agreement is also for 20 years.
It is a lot of information to take in, we know. But that’s why we’re here. We have been doing this for many years and are pretty good at it (OK, we’re experts but we didn’t want to brag!).
Now that’s what we can all call a good looking ‘green’ future!