Arizona Solar Power

1. Arizona Costs, Incentives, and Savings for Solar Installation Solar Power: Understanding Arizona solar power is becoming an increasingly attractive option for homeowners and businesses due to the state’s abundant sunshine and available financial incentives. With over 300 sunny days per year, Arizona provides an ideal environment for solar panel installations, helping residents reduce electricity bills and promote renewable energy adoption. Homeowners and businesses can take advantage of various incentives, tax credits, and rebates to make solar energy more affordable. How System Size Affects Solar Panel Cost in Arizona: The cost of installing a solar panel system in Arizona depends on several factors, including system size, equipment quality, and installation complexity. The average cost is approximately $2.08 per watt. Here’s a breakdown of estimated costs based on system size: ● 5 kW system: $10,400 ● 10 kW system: $20,800

2. ● 15 kW system: $31,200 A larger system costs more upfront but provides greater long-term savings. Federal tax credits can cover around 30% of the installation cost, making solar investments even more appealing. The Cost to Install Solar Panels in Arizona Arizona has some of the lowest solar panel installation costs in the U.S. As of January 2025, the average cost of solar panels in Arizona is $2.08 per watt (W). A 5 kW solar panel system typically costs $8,840 to $11,960, averaging $10,400 before incentives. Larger systems, like 10 kW, can cost around $20,800, but available solar incentives help reduce expenses significantly. Installing solar panels in Arizona leads to energy savings, increased home value, and greater energy independence, making it a smart long-term investment. The state’s abundant sunlight offers excellent conditions for solar energy, ensuring optimal panel efficiency. Additionally, Arizona homeowners can take advantage of state incentives and federal tax credits, further reducing installation costs and boosting the overall return on investment. Arizona Solar Incentives & Rebates ● Commercial ITC: Just like homeowners, businesses can deduct 30% of their solar installation costs from federal taxes. ● Modified Accelerated Cost Recovery System (MACRS): This allows businesses to depreciate solar investments over five years, reducing taxable income. ● Arizona Commercial Solar Energy Credit: A state tax credit covering 10% of solar system costs, up to $25,000 per installation. AZ Solar Tax Credit & Federal Incentives ● Federal Solar Tax Credit: Arizona homeowners and businesses qualify for a 30% federal tax credit, significantly reducing the cost of installing solar panels. ● AZ Solar Tax Credit: Homeowners can receive a state tax credit of 25% of the system cost, up to $1,000. ● Property Tax Exemption: Solar panel installations do not increase property taxes. ● Sales Tax Exemption: Solar energy systems are exempt from state sales tax, making them more affordable. Net Metering in Arizona

3. Arizona offers a net billing system, which works similarly to net metering. This allows homeowners to receive credits on their electricity bill for excess energy sent back to the grid. However, instead of full retail value, credit rates range from $0.0781 to $0.1045 per kWh, based on the utility company’s avoided cost. Commercial Solar Arizona: Grants & Incentives Businesses and farms can take advantage of commercial solar panel grants and incentives: ● Investment Tax Credit (ITC): Businesses can deduct 30% of their solar system cost from federal taxes. ● Modified Accelerated Cost Recovery System (MACRS): Allows businesses to depreciate solar installations, reducing tax liability. ● Commercial Solar Energy Credit: Arizona businesses receive a 10% state tax credit on solar systems, up to $25,000 per installation. Conclusion Arizona’s solar rebates, incentives, and tax credits make it an ideal state for solar investment. Whether for a home or business, switching to solar can significantly lower energy costs and provide long-term savings. With abundant sunshine and supportive solar policies, Arizona residents can achieve greater energy independence while reducing their carbon footprint. Ready to make the switch? Contact SolarSME today to get a free quote and start saving on your solar energy investment!