Have you considered installing solar for your Phoenix-area home, but wondering if solar is worth it here in Arizona? In the last 5 years, solar panels have become more efficient and 45% more affordable, and when you include other financial factors like the solar tax credit or avoiding peak demand charges, solar energy has become much more profitable for homeowners in the greater Phoenix area to start enjoying the advantages of solar energy.
The Future of Energy in Your Phoenix Home
Think back to some of the commodities that you depend on each day, like the gas for your car, energy costs for running your appliances and HVAC systems, groceries in your fridge, and the clothes in your closet. All of these commodities will fluctuate in price, meaning what you pay this month or this year could be less than what you will end up paying in the future with rising costs.
What if you could secure the monthly price of one of those commodities, not for a few weeks or months but for over two decades? Watch SouthFace Solar & Electric’s owner break down the dividends you could be receiving from solar here:
Solar PV systems come with an industry standard 25-year warranty. With a well-designed, and well-maintained system, you can depend on your energy costs being close to zero for 25 years!
Solar makes a great investment for you and your family in Phoneix with:
- Reduced electric bills with no price hikes
- Higher resale value for your home
- A rate of return that increases as the cost of living goes up
- Guilt free use of electricity for comfort and convenience
- No solar lease hassles if you sell your home
- Contributing to a cleaner, healthier planet
Saving on Solar Installation Costs in Phoenix
Many homeowners interested in solar are deterred from solar ownership early because of the perceived high cost of solar installation. However, when you factor in the available solar incentives for solar installation, the financial picture looks a little different. Available solar incentives in Phoenix include:
The Federal Solar Tax Credit
Thanks to an extension of the Federal Investment Tax Credit (also known as the Federal Solar Tax Credit), you can reduce your federal taxes owed by 26% of your total solar installation cost if you install your solar energy system before the end of 2022. After 2022, the solar tax credit value will decline.
For our example $22,600 system in the video above, that is a total of $5,876 that you won’t have to pay in federal taxes. Plus, if that covers more than what you owe in federal taxes for the year, you can roll the remainder tax credit benefit over into the next tax year.
Arizona Solar Tax Exemptions for Solar Energy
Solar installation in Phoenix is also exempt from sales tax, and because of the Energy Equipment Property Tax Exemption, you will not have to pay an increased sales tax due to the increased value of your home in Phoenix, Arizona.
The Arizona State Tax Credit for Solar?
Up until January 1, 2021, the state of Arizona allowed homeowners in Phoenix and across the whole state to reduce their state taxes by a total of 25% of their solar installation costs, with a maximum benefit of $1,000. Currently, this solar incentive has expired but SouthFace Solar is continuing to monitor for any policy updates to reinstate or extend the Arizona solar tax credit.
Avoid Demand Response Charges in Phoenix with Solar Battery Storage
Going back to reducing your monthly electricity bills, another great reason solar installation has become worth it here in Phoenix is the high prices some homeowners are paying in demand response charges. This is the increased electricity rate that your utility, like APS or SRP, can charge you for using energy during times of high demand, like right after work on a hot summer’s day when you crank up the AC in your home. Learn more about peak demand charging here.
During the peak sunlight of the day, your solar panels may convert more electricity than your home can use at one time. In a solar PV system that does not include battery storage, that excess electricity is sent to the electric grid for use in other homes. Also, when you use more energy than your solar panels may be producing (like at night), your home will need to draw in electricity from the grid so you don’t have any disruption in power.
However, with smart solar monitoring and solar battery storage options, you can store your excess solar electricity for later use and be discharged during peak demand hours to avoid peak charges by your utility.
SouthFace Solar & Electric – Your Phoenix, AZ Solar Experts
SouthFace Solar & Electric is founded on 35 years of solar experience in custom designing and engineering solar solutions for Arizona homeowners and businesses. Our solar experts’ goal is to maximize each customer’s solar investment while providing all the solar power they require.
We are with you every step of the way and will be with you even after we’ve finished installing your solar energy system. If you’re a Phoenix area homeowner or business owner looking to go solar, schedule a free solar consultation with our solar team.