Phoenix, AZ goes solar with SunPower®
Going solar in the Valley of the Sun
The state of solar in Phoenix
The Shining Cities 2020 report ranks Phoenix, AZ, fourth among the top solar cities in the U.S. The Valley of the Sun achieved this ranking thanks to favorable clean energy laws and having the city’s very light-filled 299 days of sunshine each year.*
However, according to Google’s Project Sunroof, Phoenix is far from achieving its full solar potential. Project Sunroof estimates that Phoenix could generate up to 14.8 million megawatt hours (MWh) annually if 98% of buildings in the city installed solar panels.
- *. BestPlaces: Climate in Phoenix, Arizona: https://www.bestplaces.net/climate/city/arizona/phoenix (August 2021)
How much solar energy does Phoenix produce?
In 2019, Phoenix had enough solar systems to produce 272.4 MW.* One of Arizona’s largest solar power stations is Solana, a facility 70 miles southwest of Phoenix. The facility produces 250 MW of electricity – enough to power over 65,000 homes.*
- *. Shining Cities 2020: The Top U.S. Cities for Solar Energy: https://environmentamerica.org/sites/environment/files/reports/Shining-C... (June 2020)
What are the advantages of going solar in Phoenix?
Solar energy is a clean and sustainable alternative to electricity from burning fossil fuels, and far safer than nuclear energy. Plus, the long-term savings will cover the cost of your installation.
If you install a 5 kW system today, you will save $43,434 over the next 20 years. Since the average 5 kW system in Phoenix costs $12,600, you can recuperate your investment within 7.03 years.*
Another financial benefit of going solar is the value that it will add to your property. Installing a 5 kW solar system can increase your home’s value by at least 4%.* Thanks to Arizona’s favorable property exemption laws, you won’t have to pay taxes on the value added to your home, either.
- *. EnergySage: Solar Panels inPhoenix, AZ: www.energysage.com/local-data/solar-panel-cost/az/maricopa-county/phoenix/ (August 2021)
- *. Zillow, Homes with Solar Panels Sell for 4.1% More, a comparison of home values with and without solar, in New York, NY, Orlando, FL, San Francisco, CA, Los Angeles, CA and Riverside, CA. April 2019.
How much does solar cost in Phoenix?
The cost of a home solar system can vary, even in the same state, due to a range of factors. These include:
Quality of the solar panels
Roof angle and condition
To help you understand the price of going solar in your area, we've analyzed SunPower price quotes as well as quotes gathered by third-party sources for thousands of homeowners across the country.
In Phoenix, we found that the cost of owning a 5 kW solar system ranges from $12,600 to $40,000, or in other words, from $2.52 to $8.00 per watt—and that's before considering the benefits of any available tax credits or incentives.*
Keep the cost of going solar to a minimum with these incentives:
Also, in late 2016, the Arizona Corporation Commission (ACC) made a controversial change away from the process of what was formerly called net metering to a new practice called net billing. With net billing, new investor-owned utility and electric cooperative customers who generate their own solar electricity will receive credits at “avoided cost” rates for surplus energy their system sends to the grid.
The federal solar tax credit: Homeowners who purchase their system as opposed to leasing it, can get a tax credit of up to 26% of the total cost of the solar installation.*
Sales tax exemptions: The solar equipment sales tax exemption ensures that Phoenix residents don’t have to pay any sales tax when buying solar systems.*
Property tax exemption: If adding solar increases the value of your home, you won’t have to pay property taxes on the additional value.
Residential solar and wind energy systems tax credit: Phoenix residents can access personal tax credit of up to 25% of the cost of going solar (maximum of $1,000).
- *. Local Solar Installers 2020/2021, Solar Reviews 2021, Energy Sage 2021, Wood Mackenzie 2020, National Renewable Energy Laboratory 2020
- *. Tax credits and incentives are subject to change. Visit dsireusa.org for detailed solar policy information.
- *. DSIRE: Solar and Wind Equipment Sales Tax Exemption: programs.dsireusa.org/system/program/detail/119 (March 2021)
What’s the best way to go solar in Phoenix?
The most efficient way to go solar is with the help of a qualified and experienced solar provider. The solar provider will assess your property to determine the right solar system for your energy needs and recommend the best quality solar system for your budget.
Before meeting with an expert, you can also estimate your own cost savings and see what solar looks like on your roof with a virtual solar design.
Leaving your solar installation to an expert increases your chances of getting a system that will stand the test of time and improve your property value. If you need help reducing the cost of going solar, your solar installer can help you access available state and federal solar incentives.
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