Summer in Arizona means two things: extreme heat and air conditioners running non-stop just to keep indoor temperatures bearable. Summer is also the time when electricity bills are at their highest.
But imagine: what if the same intense sun driving your AC use was also powering it – while also helping you save money on electricity bills? That’s the magic of solar power. By installing solar panels, Arizona homeowners can harness clean, renewable energy from their rooftops and slash summer energy costs.
In this article, we explore how solar power works with your AC system, how much you can save with solar-powered air conditioners, and things to consider when designing a solar energy system for summer AC use.
In Arizona, summer temperatures regularly soar well into the triple digits. It’s no surprise, then, that AC use accounts for a major portion of household electricity consumption, but how much is it costing you?
A recent study from Texas Electricity Ratings found that Arizonans spend nearly $100 more per month on electricity during the summer than in other seasons—making Arizona the most expensive state in the U.S. for staying cool. That average includes everything from small apartments to large homes. For most single-family residences, summer electric bills are shockingly high—and rising each year as utilities implement rate hikes to keep pace with Arizona’s rapid population growth.
During periods of intense summer heat, energy use spikes across the state as millions of residents run their air conditioning systems at full tilt. To manage this surge in demand, utilities often raise electricity rates, especially during peak usage hours in the afternoon and early evening. But overloaded power systems don't just mean higher bills, they also increase the chances of extensive electrical outages - which is the last thing you want to face during a scorching summer day.
It’s not just summer that puts pressure on home energy systems, either. The cold desert nights of Arizona winters often call for electric heating, which also adds to annual electricity costs. All of this has led many Arizona families to look for more cost-effective ways to manage their energy use, and that’s where solar power can make a big difference.
Read More: How to Lower Your Electricity Bill in Arizona
With solar power, you can generate clean, renewable energy while reducing your peak summer electricity bills. Here are some ways you can benefit from solar power in the Arizona summer:
Solar panels generate the most electricity during the middle of the day, right when air conditioners are working their hardest. This can help offset a large portion of your household’s cooling demands, reducing your reliance on grid power during peak hours when rates are highest. As a result, you’ll see lower electricity bills.
Arizona utilities like APS and SRP use time-of-use (TOU) or demand-based rate structures that charge more for electricity used during peak periods (which can be anywhere between 4 p.m. and 8 p.m., as well as some early-morning hours, depending on your utility, chosen rate plan, and season). With solar panels during energy during those same hours, you can reduce the amount of high-cost electricity pulled from the grid and avoid some of the highest rates of the day.
If you pair solar power with battery storage, the savings will be even higher. Solar batteries will store excess solar power you generate during the brightest part of the day so you can continue using clean, renewable energy in the evenings – further reducing your need to purchase expensive on-peak power during the sunset hours later in the day.
Learn More: Net Billing And The Case for Arizona’s Solar Market
Solar installations are eligible for generous federal and state incentives. For example, the federal solar tax credit allows homeowners to deduct 30% of their system cost from their federal taxes, and Arizona residents can receive an additional state tax credit of up to $1,000.
On top of that, solar systems are exempt from sales tax in Arizona. This means you don't have to pay state sales tax on solar panels, inverters, batteries, and other components. If the upfront costs of installing solar power are a concern for you, these incentives can help lower the initial investment while also improving your return on investment over time.
See More: Federal Solar Tax Credit: Everything You Need to Know
To see how solar power can reduce AC costs, let’s walk through a simple example based on a typical Arizona home.
Let’s consider a Phoenix household that runs the AC for most of the day, especially during late afternoon hours when the family is home from work – and when utility rates are at their highest. The household’s total monthly electricity usage is around 1,500 kWh, resulting in an electric bill of about $300+ per month, driven mainly by cooling costs and time-of-use pricing.
Now let’s imagine this same household has installed an 8 kW solar system that generates around 1,200 kWh per month during the summer. This would offset the majority of the home’s electricity needs, especially during those peak sunlight hours when the AC is working its hardest. This leaves just 300 kWh to be covered by the grid, either during the early mornings, evenings, or cloudy days. Depending on the utility and rate plan, this could bring the household’s monthly bill down to around $50 to $80.
The total monthly savings with solar would be anywhere from $220 to $250, with total summer savings (June - August) of about $660 to $750 or even more. Annual savings with year-round solar production would be even higher.
Now let’s imagine the household added battery storage to take their energy savings even further. Instead of sending excess solar power back to the grid during the day, the solar battery stores that energy to be used later, especially in the evening when electricity rates are at their highest.
When the sun sets and utility prices rise, the battery kicks in to power the HVAC system and other appliances. This reduces or even eliminates the home’s reliance on grid electricity during pn-peak hours.
With a standard 10 kWh battery paired with their 8 kW solar system, the household could reduce their remaining grid usage (roughly 300 kWh) by another 200 to 250 kWh, potentially bringing their monthly bill down to just $10 to $25. That’s an extra $40 to $70 in monthly savings compared to solar alone, or $120 to $210 over the entire summer.
Beyond the added savings on electricity bills, the battery also offers backup power during outages. Since we know that summer AC usage often overwhelms the grid, having this additional energy independence can be a great asset to a household. On top of that, the battery provides protection against future rate hikes by reducing reliance on utility power.
Learn More: Batteries or Generators: Which Backup Solution is Best for Your Home?
It’s clear there are many benefits to pairing your summer AC habits with a solar energy system, but there are a few things to consider to get the most value out of your system. Here are some things to keep in mind when planning a solar-powered air conditioning system for your Arizona home:
The first thing to do is understand how much cooling your home requires. Consider the size of your home, the number of rooms you cool regularly, and how comfortable you like to be during those hot summer days.
It’s also important to think about your home’s energy efficiency and insulation – homes with older insulation or inefficient windows might need more energy to maintain the same temperature as more energy-efficient homes. The idea here is to know your typical summer usage to determine the right AC unit and solar system size needed to support it.
When considering the size of your solar array, you should think about both current energy use as well as any expected increases (for example, buying an EV or adding a pool pump). If you plan to offset a large portion of your AC costs, then your solar system needs to be large enough to do so.
Sizing your solar system should also take into account your available roof space, roof orientation, and type of solar panels (and their efficiency). This information can help you calculate roughly how many panels you’d need to cover your energy usage.
Learn more about sizing a solar system in our blog article: How to Size a Solar System: Step-by-Step (2024 Guide). For more professional guidance, contact our team at Sun Valley Solar Solutions for a free, no-obligation solar quote that includes evaluating your energy usage and property.
In the United States, air conditioner efficiency is rated by the seasonal energy efficiency ratio, known as the SEER rating. Not all AC units are the same, and more energy-efficient appliances will use less electricity to cool the same space, essentially allowing you to save energy. If your AC is more than 10 years old, it might be worth upgrading to a more modern and energy-efficient model to reduce the load on your solar system and lower summer bills even more.
It’s not essential, but adding a solar battery can add even more value to your solar system. To recap, batteries store excess solar energy generated during the day and discharge it when the sun goes down, something that can be especially helpful during expensive on-peak rate hours in the late afternoon and evening. With a battery, you can run your AC at night without needing to pull from the grid, further increasing your electricity savings. It also means you won’t be sending excess solar power back to the grid, helping you get the most use out of your investment.
Keep Reading: Should I Get Battery Storage for My Solar Energy System?
It’s also worth considering what times of day you tend to use the most electricity. If most of your AC use occurs during the afternoon, when solar output is at its highest, then your panels can directly power your cooling system. If you mostly rely on AC in the evening or early mornings, you may benefit more from battery storage or a system designed for partial offset and load shifting.
Again, a trusted solar installer will help you work this out so you understand your options and design a system that works for you and your energy consumption habits.
Yes, a properly sized solar energy system can generate enough electricity to offset a large portion, or even all, of the power your AC uses during the day.
Solar panels generate power during daylight hours, so they cannot supply electricity at night unless they’re paired with a solar battery system. Solar batteries allow you to store excess energy produced during the day and use it to run your AC at night or during cloudy weather.
Solar power can be enough to keep your home cool during hot summer days, especially if the system is designed with your specific space and cooling needs in mind. To get the most benefit, it’s important to consider your home’s insulation levels, AC size and efficiency, and other factors when sizing your system.
Not necessarily. Many Arizona homeowners use solar power without batteries and still see savings, especially if they use most of their electricity during the day. That said, a battery will help to reduce evening usage while also wiping away all or most of the expensive on-peak hours entirely. Plus batteries provide backup power during outages - which is essential in Arizona’s extreme heat where the loss of AC can be a serious health risk.
The best way to do this is to consult a professional solar company for a consultation. Solar installers will review your past electricity usage (especially during peak summer months) and consider factors like your home’s size, AC efficiency, shading, and roof orientation to design a system that’s properly sized to cover your energy needs all year round.
It’s hard to imagine an Arizona summer without air conditioning, but with the right solar setup you can stay cool without worrying about massive energy bills. A solar air conditioning system can help you lower your electricity expenses, decrease your carbon footprint, and reduce reliance on the grid during the most expensive times of the year.
If you’re ready to turn Arizona’s intense sun into a clean, renewable energy source that keeps your home cool, our team is ready to help. Contact us today for a free, no-obligation solar consultation and let’s start building your solar system.