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Arizona Solar Power Facts in 2022

Arizona Solar Program

The Persian Gulf of solar energy in the USA, this state has plentiful sunlight and arid conditions to offer to anybody who thinks solar panels are the future. Currently, the state of Arizona ranks 5th by the total solar power installed and is set to grow even further as solar panels can be seen on more rooftops every day. If you wonder whether it pays off to install solar panels in Arizona, think no more, as solar system companies offer ever more competitive rates and speed up their work. 

Arizona Solar Energy Data

Solar panels in Arizona are set to grow ever more. The Copper state currently has more than 6,100 MW in solar panel installation and can supply power to almost a million homes. The solar industry in this state is responsible for generating around 8.23% of the total energy produced in the state and the majority of this power comes from solar panels installed by domestic companies. Compare solar panels in Arizona to solar panels in California and Solar Panel in Texas for a better idea of where Arizona is headed

The state of Arizona is very serious with their solar power aspirations: their total solar panels’ investment by 2021 was around $14.6 billion, and ambitious plans to expand the production capacity is likely to push this number further. Arizona has passed a legislature back in 2020 that would enable the industry to be 100% renewable by 2050 under the renewable portfolio standard. The ambitious plan is exciting, as Arizona joins the leading states in solar expansion. 

Arizona Solar Statistics

DescriptionStatus
Arizona National Ranking5th
Solar Panels Installed(MW)6,100 MW
Can Supply Power to: (No. of Homes)+908,000
% of State's Electricity from Solar8.23%
Solar Companies in the State361 (72 Manufacturers, 174 Installers and Developers, and 115 Others)
Solar Jobs Created7,346
Total Solar Investment in the State$14.6 Billion
Out of Pocket Cost for a 5kWh system$12,500-$16,800
Net 20-year savings$38,600-$52,200
Average Payback Period6.5-9 years
Electricity Bill Offset for a 5kWh system+77%
Number of Solar Installations+191,900

Notable Solar Installations in Arizona 

The majority of Arizona’s 191,900 solar installations are residential solar panels. These solar panels produce enough electricity, on average, to satisfy the needs of the home they are installed on but are nowhere enough to power the industry with all its heavy machinery. That is why Arizona has a number of large-scale solar systems as well as concentrating solar power project solutions. 

Among others, the biggest plants for solar power in Arizona are: 

  1. Solana – a 250 MW concentrating solar project is enough to power over 65,000 Arizona households, 
  2. Mesquite Solar Project – a project consisting of several PV solar projects, with a total solar capacity of 700MW: 
    • Phase 1 – 150 MW of solar power – enough to power almost 22,500 homes, 
    • Phase 2 – 100 MW of solar power – enough for 15,000  homes to get their share of clean electricity, 
    • Phase 3 – 150 MW of solar power – enough to eradicate the carbon footprint of 22,500 Arizona homes. 
  3. Agua Caliente Solar – in Yuma County, this solar photovoltaic project has a 290 MW capacity and can produce enough electricity for 43,000 homes, 
  4. Arlington Valley Solar Energy II – a photovoltaic solar installation with 125 MW, has been online since 2013, can produce enough power for around 18,500 Arizona homes. 

Solar system solutions in this state are likely to keep springing up, since the cost of solar panels is going down and Arizona solar power seems to be the future of power production in this state. Solar inverters, solar panels and installers keep getting cheaper and more affordable as the state offers incentives to increase electricity savings and sets renewable energy standards in place. 

Why is Arizona a strong  market leader in Solar Energy?

Arizona offers plenty of sunshine to anyone who wants to go solar. If you think that the varying desert landscapes of this state are a great place to go solar, you’re not wrong. With 299 sunny days per year, Arizona offers around 50% more sunshine than the rest of the USA. This means that installing solar panels never made more sense, as even a small, 5kW system can offset a large portion of your electric bill. 

Average Cost of Solar Energy Systems

The past several decades have seen a significant decrease in home solar system cost in Arizona. The price of a solar panels system in Arizona and the USA has fallen by 80% in the past ten years and 43% in the past five years. While the initial solar panels cost still may seem much, read on about the average cost of solar panels in Arizona. 

Solar costs in Arizona have fallen dramatically in the past several years. The average price you can expect to pay for a solar system in this state is now somewhere between $2.13 and $2.89 per Watt of installed solar power. An average 10kWh system would then cost you anywhere between $21,300 and $28,900. 

Since there are no costs for energy storage, as the energy grid acts as your battery, the solar panels’ cost is significantly reduced as batteries are not included. Furthermore, you can expect your 10kWh solar system to offset 100% of the total electricity bill, even for large households. At an average Arizona electricity cost of $1,850 per year, this translates to significant savings on the average cost of your electricity bill. 

Solar Panel Energy Production in Arizona

Solar Panel Energy Production in Arizona has been experiencing an upward trend, just like the rest of the USA. The state has come a long way from a mere 18.9 MW of solar panel system power in 2007. Ten years later, in 2017, there were 3,423 MW in solar panel installation. In 2021, this number rose to over 6,000 MW (6 GW) of the solar system installed in the state.

Significant rebates, tax credits, and the state’s ambitious plans to expand renewable sources to cover 100% of their electricity needs speak volumes of future solar production in Arizona. At the same time, the state strengthens residential solar through financial incentives for the sake of grid stability and avoiding power outages. More producers, even on a micro-scale, mean more network stability and fewer climate change consequences. 

Arizona Solar Incentives, Rebates, and Tax Credits

Solar customers in Arizona have to cash out a significant amount of money, or so it seems. In reality, several incentives bring down the solar cost for residential solar. These are the federal Investment Tax Credits, the Residential Arizona Solar Tax Credits, The Solar Equipment Sales Tax Exemption, and The Energy Equipment Property Tax Exemption. On top of all these, every utility company in Arizona has to offer net metering

Federal Investment Tax Credit 

The Federal ITC is a great Tax Credits solution that gives you back up to 26% of your solar investment in the form of Federal Tax Credits. You have to pay enough federal taxes for the incentive to make sense and should take note that any tax credit you do not use up in the current year can be rolled over for up to ten years. 

The Residential Arizona Solar Tax Credit 

The residential Arizona tax credit is the next best thing to the federal ITC. This form of local incentives gives back up to 25% of your solar investment as solar credit. You cannot claim more than $1,000 in a taxable year, so the remaining credit is rolled over to the following years. This incentive applies to your personal income tax. 

Solar Equipment Sales Tax Exemption

Arizona Solar Sales Tax Exemption deducts 5.6% of the total cost of your solar system cost. The savings add up and can be used wisely, as the money you save on sales tax can be used to pay the best solar installers in the state. 

The Energy Equipment Property Tax Exemption

Every kW of the solar system installed on your rooftop increases the value of your home by around $6,000. This usually translates to increased property tax you have to pay each year. However, this local incentive does not consider the value-added to your home, so your property taxes stay the same in the state of Arizona. 

Net Metering in Arizona

Net metering in Arizona is a great way to mitigate a large portion of solar upfront costs. Under this policy, your solar company installs solar panels on your rooftop, and your utility company installs a dual electricity meter to monitor how much energy you send to the energy grid and how much energy you take back. At the end of the month, you only pay the net difference. 

DescriptionEquivalent Cost
The Cost of PV - 10kWh at an average of $2.51 per Watt of Solar Installed$25,100 
The Federal Solar Tax Credit @26%$6,526
The Residential Arizona Solar Tax Credit @25%$6,275 ($1,000 available per year) 
Arizona Sales Tax Exemption @5.6%$1,405.60
Net Metering Savings at 100% for 10kW Solar System with $13.16/kWh electricity rates per year$1,842.4
TOTAL system cost for a 10kWh home solar system at the end of year 1$14,326.4
Years before a 10kWh system pays off if all Arizona incentives and tax credit are taken ~ 6 years (at 100% Federal ITC eligibility) 

Top Solar Companies in Arizona

Arizona Solar Power employs over 9,000 people. This rising industry is supported by 361 solar companies that can install a solar system on your rooftop. Home solar system price has been in decline, and so is the cost of solar panel installation. Asking around and ensuring you get the best solar systems and installers can reduce your solar price in Arizona. 

The ten best solar installers in Arizona are: 

  1. Sunny Energy, Tempe, 
  2. Zenernet, Phoenix, 
  3. JIT Solar LLC, Mesa, 
  4. Sunbright Solar, Tucson, 
  5. Redline Electric & Solar, LLC, Tempe, 
  6. Green Muscle Solar, Peoria, 
  7. SunUp America, Phoenix, 
  8. Arizona Solar Concepts, Tempe, 
  9. Verde Solar Power, Cornville, 
  10. SunHarvest Solar, Phoenix. 

FAQs

Can solar panel run AC?

Yes, solar panels can run your AC system. A single solar panel is insufficient to keep a hungry AC supplied with electricity, but your home solar system can support the AC. Bear in mind that heating demands way more electricity than cooling, so to make sure your solar system can heat as well, you can combine it with a heat pump, to save even more.  

Should you buy a house with a solar lease?

Yes, you should buy a house with a solar lease. While many say that solar is owned solar, having a solar lease system on your rooftop will give you a taste of clean energy so that you can decide whether you want to go further with solar power or not. If the house comes with batteries, you can also enjoy the peace of mind of not a single power outage for years to come. 

What can a 10kW solar system run?

A 10kWh solar system can run an entire household. Combined with net metering, it can power your house year-round. If you combine it with solar batteries, you can go completely off-grid, depending on your use. Considering that a 5kWh system can offset a minimum of 77% of your energy bill, a 10kWh system will keep your house supplied for many years to come. 

Do solar panels extend the life of a roof?

Yes, solar panels can extend the life of your roof. They act as a layer of protection and can protect your roof tiles and the supporting structure from hale and other weather events. Some people may say that the extra weight on your roof decreases its life, but solar panels add around 4 lbs per square foot to your roof compared to 27lbs per square foot carrying capacity. 

Conclusion

The desert landscape and 299 sunny days make Arizona the solar heaven of the USA. Going solar in this state is a great investment since great federal and local incentives bring down the solar cost in Arizona down by more than 50%. More sun and lower cost of home solar combine for homeowners who think ahead. 

If you think that solar panels cost is now more affordable than ever and that you are ready to install residential solar panels, look no further. The State of Arizona is one of the best places in the USA to do so. Install solar for a worry-free, energy independent future today.

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