Do solar panels in Arizona actually save money? A question homeowners often ask.
The appeal of reduced electricity bills, government incentives to help pay for your system, and positive environmental impacts are all reasons homeowners go solar. And while there are many benefits, savings is the number one reason homeowners go solar.
If you are wondering where to start with saving money on solar panels in Arizona we have got you covered. In this blog, we will talk about how much money is saved on average by using solar panels in Arizona, how long it takes to see savings on energy bills with solar panels in Arizona, and tips to save money on electricity bills. Also we will discuss how a trusted Arizona solar company can guide you in saving electricity bills.
Do solar panels in Arizona actually save money?
The appeal of reduced electricity bills, government incentives to help pay for your system, and positive environmental impacts are all reasons homeowners go solar. And while there are many benefits, savings is the number one reason homeowners go solar.
If you are wondering where to start with saving money on solar panels in Arizona, we have got you covered. In this blog, we will talk about how much money is saved on average by using solar panels, how long it takes to see savings on energy bills with solar panels in Arizona, and tips to save money on electricity bills.
Average money you can save by using solar panels in Arizona
There’s no one-size-fits-all answer to how much you’ll save by using solar panels in Arizona. It depends on several factors, including:
1. System size and cost:
Bigger systems generate more electricity but cost more upfront. The average system size in Arizona is 10 kW, costing around $21,000 after the 30% federal tax credit. However, your needs and budget will determine the ideal size for you.
2. Electricity usage:
High energy consumers will reap larger savings from solar. The average monthly electricity bill in Arizona is $146.63, but most people in single family homes that are suitable for solar experience average monthly utility bills of $300, or more.
3. Incentives and rebates:
Arizona offers generous solar incentives, including the federal tax credit and a state tax credit worth $1,000. Utilities also offer some attractive rates to purchase your excess solar energy, or in some cases, net metering which gives you retail credit for your excess solar.
4. Efficiency and lifespan:
Panel efficiency and system quality impact energy generation. Panels are generally guaranteed for 25 years, but usually last 30 years or more with potential savings stretching throughout their lifespan.
Considering these factors, here’s an estimate on savings in Arizona:
- Average 10kW system, with a net cost after incentives of $10,000, has potential annual savings of $2,000 to $2,400 with full dependence on solar.
- Break-even period: Average of 8 to 10 years, meaning you recoup your investment in that time.
- Total lifetime savings: Between $20,000 and $96,000, depending on factors mentioned above.
When do you see savings on energy bills with solar panels in Arizona?
The initial cost of solar panel installation was a significant barrier for many homeowners. However, with advancements in technology and increased competition in the solar industry, the cost has significantly decreased. Additionally, financing options and government incentives make solar installations more accessible.
On average, homeowners can expect to start experiencing savings almost immediately. The reduced reliance on the grid translates to lower electricity bills from the very first month of solar panel activation. With the decreasing costs of solar technology, the payback period has significantly shortened in recent years, ranging from 5 to 10 years on average.
This shorter payback period is a testament to the increasing efficiency and affordability of solar energy systems. As a result, the benefits of reduced energy bills and potential additional income through solar incentives become tangible within a relatively short time frame.
Tips to save money on electricity bills
Here are some tips to save money on electricity bills:
1. Use your power as it is generated:
One of the key advantages of solar energy is that it generates power during daylight hours. To maximize savings, it’s advisable to use electricity when your solar panels in Arizona are producing energy. This includes running appliances, charging electronic devices, and performing energy-intensive tasks during peak sunlight hours. By aligning your energy consumption with solar production, you can make the most of the clean and cost-effective power your system generates. (Tip: By adding battery storage you can save even more by using your solar energy at night). Sunny Energy is one of the leading solar company in Phoenix and a solar installer.
2. Ensure the system is installed optimally:
Proper installation is critical to maximizing the efficiency of your solar energy system. When investing for solar panels in Arizona, it’s crucial to hire a reputable and experienced installer. Solar system design and installation can cause differences in savings of 50%, or more,, for the same system. Professional installers ensure that your panels are positioned for optimal sunlight exposure, taking into account factors such as roof orientation and shading. A well-installed system not only enhances energy production but also contributes to the longevity of your solar panels in Arizona, ensuring sustained savings over the system’s lifespan. Sunny Energy is one of the best solar company in Arizona to install solar panels.
3. Get tax credits and incentives:
Governments around the world are encouraging the adoption of solar energy through various incentives and tax credits. Researching and taking advantage of these programs can significantly offset the initial cost of installing solar panels in Arizona. In the United States, for example, the federal government offers the Investment Tax Credit (ITC), providing a tax credit of up to 30% of the total system cost. Local incentives and rebates further contribute to making solar installations more affordable. By leveraging these financial incentives, homeowners can enhance their return on investment and accelerate the payback period. Sunny Energy is considered as one of the best Arizona solar contractors who can guide you in tax credits and incentives according to your needs.
4. Install a battery:
Integrating a battery storage system with your solar installation adds an extra layer of savings and resilience. Batteries allow you to store excess energy generated during the day for use during the night or when sunlight is limited. This reduces reliance on the grid even further, providing energy independence and additional cost savings. While the initial cost of a battery system is an investment, the long-term benefits, including increased self-consumption and potential grid independence, make it a strategic addition to a comprehensive solar energy setup. If you are looking to install a battery and searching for solar power companies near me then Sunny Energy is the top rated solar companies in Arizona.
Save money and environment with Sunny Energy now
The process of going solar and high initial costs may seem daunting first. As a leading and trained solar installer like Sunny Energy, one of the best Arizona solar companies can guide you through the process and ensure savings on your electricity bill. Sunny Energy holds more than 15 years of experience and can help you purchase the correct number of panels to maximize savings, and also that you’re taking advantage of all potential savings such as social incentives and tax credits. Reach out to us for solar consultation today.
