How Much Money Can Solar Save you in Arizona?

There are many reasons why Arizona homeowners might consider switching to solar. Aside from all the environmental benefits of embracing clean energy, solar raises the value of one’s home and protects homeowners against rising utility rates. An abundance of sun–places like Yuma, Tucson, and Phoenix regularly rank for having the highest number of sunny days per year–is the cherry on top.

5 of the Biggest Reasons to Go Solar in Arizona

If you’re considering solar for your home in Arizona, now is the perfect time to make the switch. As the sunniest state in the U.S., Arizona homeowners can save thousands of dollars on electricity bills over the lifetime of their solar system. 

Here are a few of the biggest reasons Arizona residents are investing in solar for their homes. 

1. Long-term savings on your monthly utility bill 

Like many U.S. states, Arizona has been experiencing a surge in utility rates. From October 2019 to October 2020, residential electricity consumption increased by 9.8-percent. This year alone, rates increased 8%, which is about $10.50 a month based on the average use of 1,050 kilowatt hours (kWh). 

On top of annual increases, Arizona residents tend to have significantly higher electricity bills during the hot summer months. Temperatures can go as high as 113°F, meaning that more energy is needed to stay cool. Most people living in Arizona expect to see an extra $200 or more on their monthly utility bills for June, July, and August. In comparison, the national average is $149.71 for the same time period. 

2. Sunny year-round weather

While solar panels are efficient in just about all weather conditions, an abundance s of sun definitely helps. In fact, solar panels only need a few hours of strong sunlight to power your home. So, with all the direct sunlight available in Arizona, switching to solar energy is incredibly efficient and cost-effective. 

As we touched on earlier, summers in Arizona are scorching. Fortunately, solar panels are built to withstand all sorts of weather conditions and this includes extreme heat. High-quality panels such as those that fall under the Tier One category, have temperature tolerance specifications to make sure that they are both efficient and durable year-round. 

3. Enticing federal and statewide incentives 

Arizona homeowners are able to take advantage of several federal and state wide incentives for going solar. On a federal level, homeowners can receive a 30% tax credit on their installed PV systems.

Other incentives for Arizona homeowners include:

• Arizona Residential Solar Energy Tax Credit: In Arizona, residents are offered a tax credit for the cost of solar installation, up to a maximum amount of $1,000.
• Energy Equipment Property Tax Exemption: Arizona homeowners who install a solar system will not be taxed on the increase in value of their home.
• Solar Equipment Sales Tax Exemption: There is a 5.6% home solar power system state sales tax exemption for residents who invest in solar for their homes.

4. Reducing your carbon footprint

Running you home on solar is one of the best ways to reduce your carbon footprint. As a clean, renewable energy source, solar doesn’t create carbon emissions or other “greenhouse” gasses. Rather, it avoids the environmental damage that comes from mining or drilling for fossil fuels. 

Another way solar energy benefits the environment is by requiring little to no water to operate. Coal, natural gas, or nuclear power plants, all need substantial amounts of water for cooling. This makes solar energy an excellent option for arid regions and areas facing water scarcity – especially important in regions where drought and climate change impact annual rainfall. 

5. It increases the value of your home 

No matter where you live, choosing to switch to solar energy for your home increases its value.  On average, running your home on solar energy increases its value by 4.1-percent. Aside from offsetting your electricity bill and gaining energy independence, solar panels give a home a sleek and modern appearance, which is important for many buyers in today’s market. 

Unlike many other States, the cost of installing a home solar system is less expensive and therefore more achievable for more homeowners. According to NerdWallet, the typical cost of a home solar system before federal solar tax credit is $28,426. In comparison, the national average is $34,122. 

As a reminder, Monalee is able to cut total costs by up to 50% without sacrificing the quality of equipment. A big way we’re able to do this is by leveraging advanced machine-learning algorithms and removing commission-based salespeople from the process. 

How much can solar save you in Arizona in 2024?

Making the switch to solar is one of the best investments you can make as a Arizona homeowner. Systems are designed to last up to 25 years, during which time you’ll be saving on monthly electricity bills and fully powering your home with your panels. 

Below is a graph that shows what the average initial investment is for homeowners who choose Monalee vs. choosing a traditional solar company.

Our patent-pending technology is able to generate interactive solar panel roof proposals in ten seconds or less, and we remove commission-based salespeople from the process. Every soft cost we save on we pass directly to the homeowner. 

In Conclusion

More and more homeowners in Arizona are choosing to switch to solar and for good reason. Compared to the national average, installation costs are lower and this makes it possible to receive a return on your investment in a shorter period of time. Solar systems in Arizona are both cost-effective and highly efficient, and the 300 days of sunshine definitely plays an important role. Finally, the state offers both federal and statewide incentives that make the initial cost of going solar less expensive.