Discover the affordability of solar panels in Arizona in 2021 and start harnessing clean energy for your home. Embrace sustainability while saving money with the latest cost-effective solar options.
Solar Panels Arizona Cost 2021: A Guide to Going Solar in the Grand Canyon State
As we move towards a more sustainable future, solar panels have become an increasingly popular choice for homeowners and businesses alike. With abundant sunshine throughout the year, Arizona offers an ideal environment for harnessing solar energy. However, before making the switch to solar, it is important to understand the current costs and benefits associated with installing solar panels in Arizona in 2021. In this article, we will explore the costs, incentives, and savings associated with solar panels in the Grand Canyon State.
The cost of solar panels can vary depending on various factors, including the size of the system, the type of panels, and the complexities of the installation. On average, the cost of a residential solar panel system in Arizona ranges from $10,000 to $20,000 for a 5kW system. However, it is important to note that these figures represent the upfront costs and do not take into account the various incentives and savings that come with going solar.
The first and most significant incentive for installing solar panels in Arizona is the federal Investment Tax Credit (ITC). The ITC allows homeowners and businesses to deduct 26% of the total system cost from their federal taxes. This tax credit is set to decrease to 22% in 2023, so by going solar in 2021, residents can take advantage of the maximum benefit. For example, if you install a 5kW solar panel system that costs $15,000, you would be eligible for a tax credit of $3,900, effectively reducing your out-of-pocket expenses.
In addition to the federal tax credit, Arizona also offers state-level incentives to further reduce the cost of installing solar panels. One such incentive is the Arizona State Tax Credit, which allows homeowners to claim a credit of up to $1,000 on their state taxes. Furthermore, the state also offers property tax exemptions for solar panels, meaning that the added value from the installation of solar panels will not increase your property tax assessment. These incentives can significantly reduce the overall cost of going solar in Arizona.
Another important consideration when calculating the cost of solar panels in Arizona is the potential savings on electricity bills. The average residential electricity rate in Arizona is around $0.12 per kilowatt-hour (kWh). The amount of electricity produced by your solar panel system will depend on factors such as panel efficiency, size, and available sunlight. On average, a 5kW system can produce around 7,200 kWh of electricity per year. This means that by going solar, you can save approximately $864 per year on electricity bills.
It is also worth noting that excess electricity produced by your solar panel system can be exported back to the grid through a program known as net metering. Under net metering, any excess electricity is credited to your account, effectively reducing your future electricity bills. However, it is important to check with your utility company to understand their specific net metering policies and whether any additional fees may apply.
Aside from the financial benefits, installing solar panels in Arizona also has significant environmental benefits. By going solar, you reduce your dependence on fossil fuels and help combat climate change. The electricity produced by solar panels is clean and renewable, resulting in a reduction in greenhouse gas emissions. According to calculations by the U.S. Environmental Protection Agency (EPA), a 5kW solar panel system in Arizona can offset approximately 7,000 pounds of carbon dioxide emissions annually, equivalent to planting over 100 trees.
In conclusion, the cost of installing solar panels in Arizona in 2021 can range from $10,000 to $20,000 for a 5kW system. However, with the various incentives available, such as the federal tax credit, state tax credit, and property tax exemptions, the overall cost can be significantly reduced. Furthermore, the savings on electricity bills and the positive environmental impact make solar panels a worthwhile investment for Arizona residents. If you are looking to make the switch to solar, it is important to consult with a reputable solar installer who can assess your specific needs and guide you through the process. So why wait? Take advantage of the sunny climate and switch to solar power in Arizona today!