Top Reasons to Go Solar in Arizona

With an abundance of sunshine and more peak sunlight hours than anywhere else in the US, Arizona is one of the best states for solar power. Solar energy offers a cleaner and more efficient alternative to fossil fuels, and every solar installation contributes to a cleaner energy  future for us all. Over the past decade, technological advancements and improvements in manufacturing have dramatically improved the efficiency of solar panels while also reducing their cost. As a result, it’s never been easier or more affordable to power your Arizona home or business with clean, renewable solar energy. 

If you live in Arizona and you’re on the fence about making the switch to solar, allow us to show you some of the best reasons to go solar in Arizona. From taking advantage of your strategic location to saving money on energy bills and increasing the value of your property, let’s dive into the benefits of solar power in Arizona. 

You’re in one of the sunniest states 

Arizona is one of the sunniest states in the US, boasting more than 300 days of sunshine per year. This near-constant sunshine makes Arizona the ideal environment for solar panel installation and you can expect your panels to consistently generate solar power all year round. 

On top of its abundant sunshine, Arizona - along with Nevada, New Mexico, and California - also has the longest duration of ‘peak sunlight hours’ compared to the rest of the country. This is when solar panels receive the highest amount of direct sunlight, or solar irradiance, allowing them to generate the maximum amount of clean, renewable energy. 

Essentially, high solar irradiance means Arizonan homes and businesses can produce more clean electricity compared to those in less sunny regions of the country. Not only does this maximize your investment, but it also allows you to store extra electricity in your solar batteries or send it back to the grid for credits. 

Your solar panels will pay for themselves faster

Living in a state with abundant sunshine and high peak sunlight hours means Arizonans can reliably generate solar energy at maximum efficiency year round, leading to greater cost savings. This ultimately translates to a shorter payback period for your solar panel investment, allowing you to recover the initial costs of your solar panel system more quickly. 

See More: Solar Panels ROI: Calculating Your Average Returns 

You can reduce or eliminate your energy bill

One of the most compelling reasons to go solar in Arizona is that you can expect significant savings on your energy bills. By generating your own electricity and becoming  less reliant on the grid, you can greatly reduce or even eliminate your monthly energy bill. Given Arizona’s higher energy demands, especially during those scorching summer months when air conditioning use is at its peak, the potential for savings is substantial. 

When you install solar panels, you effectively reduce your need to purchase grid power. The electricity produced by your solar system during daylight hours can power your home or business, and you’ll only have to pay for the electricity you use beyond what your panels cover - such as at night or on cloudy days. So if your household consumes 40kWh per day, and your solar panels produce 30kWh, you’ll only need to buy 10kWh from the grid. That’s 75% less than what you would have otherwise had to purchase without solar power. 

If your solar panels generate more power than you need, this can be fed back to the grid under Arizona’s net billing program. This means that utilities will buy back any excess solar power you generate. This buyback rate is much less than the retail value of electricity. These credits can be used to further offset a portion of your electricity costs. 

You should be aware that some Arizona utilities are reducing this buyback rate on an annual basis. Fortunately, when you sign a solar interconnection agreement you lock in the buyback rate for 10 years, so there’s ample motivation to make the move sooner than later in that regard. 

You can protect against increasing energy costs

Another financial incentive to going solar is that generating your own power will protect you against the rising costs of electricity. Traditional energy prices are prone to fluctuations and increases that can make budgeting a nightmare, whether you're a home or a business. 

As recently as March 2024, APS increased its electricity rates by an average of 8% for residential customers. You probably already noticed this in your summer bills. 

With most solar panels of today lasting 25 to 30 years or more, installing solar panels means you'll be locking in predictable energy costs for decades. The beauty of this is that, as utility rates continue to increase, the savings you gain from your solar investment will also grow. 

Continue Reading: How Long Do Solar Panels Last?

You can help reduce greenhouse gasses 

Switching to solar won’t just help you save money, it will also reduce your carbon footprint. Solar energy is a clean, renewable resource that greatly reduces greenhouse gas emissions and is one powerful step you can take to combat climate change. By harnessing Arizona’s abundant sunlight, you can contribute to a more sustainable and positive future. 

Traditional electricity sources are heavily reliant on fossil fuels like coal, oil, and natural gas, which release large amounts of carbon dioxide (CO2) into that atmosphere. These emissions contribute to air pollution and climate change. Solar energy, on the other hand, is a clean and sustainable alternative that produces no emissions. 

When you switch to solar energy, you reduce your reliance on fossil fuels and decrease the demand for these finite, pollutant energy sources. Every kWh of solar energy you generate will offset a corresponding amount of CO2 emissions that would’ve been produced by fossil fuel power plants. Over the lifespan of your solar system, you will have significantly reduced your carbon footprint. 

With climate change being a hot topic, taking action now to reduce your CO2 emissions will give you a sense of pride for becoming part of the solution rather than the problem. 

You’re eligible for incentives & tax credits

Many homeowners and businesses understand the benefits of solar power in Arizona but are afraid of the upfront costs involved. However these costs can be offset by various financial incentives, including tax credits and rebates that make solar energy adoption a lot more affordable. 

Some of the financial solar incentives you can take advantages of when installing solar panels include:

• Federal Investment Tax Credit (ITC): The federal solar tax credit is one of the most impactful incentives for solar panel installations, offering a 30% credit of the cost of your entire solar panel system. The ITC is available for both residential and commercial solar installations. 

• Solar Equipment Sales Tax Exemption: Arizona offers a sales tax exemption for the purchase of any solar energy equipment, including panels and inverters. This means you don’t have to pay state sales tax on these items, further reducing the costs of installation. 

• Property Tax Exemption: Installing solar panels can increase the value of your property, but thanks to Arizona's property tax exemption, you won’t have to pay higher property taxes on the added value from solar panels. 

• Residential Solar Tax Credit: As well as the ITC, homeowners who install solar panels in Arizona can also enjoy a 25% credit on their installation costs up to $1,000. 
• MACRS Investment Depreciation: Every commercial solar system qualifies for the Modified Accelerated Cost Recovery System (MACRS) method of depreciation for up to five years.
• USDA REAP Grants: Qualifying businesses in Arizona are eligible for the USDA Rural Energy for America Program (REAP) grant, which covers 25% of a solar investment up to $500,000. 

Remember, these financial incentives won't always be around so it's important to act quickly and take advantage of them while they're still available. You can read more about residential solar financial incentives and commercial solar incentives on our website. To get tailored guidance on what you’re eligible for, don’t hesitate to contact our team at Sun Valley Solar Solutions. 

You can increase your home’s value

Solar panels won’t just save you money on electricity bills, they’ll also increase the value of your property by thousands - or even tens of thousands - of dollars. Numerous studies have shown that buyers are willing to pay a premium for properties with a solar energy system. Let’s take a look at what the promising research shows… 

The National Renewable Energy Laboratory (NREL) estimates that solar panels add $20 to your home's value for every $1 you save on electricity bills. $20 might not sound like a lot, but if your solar system saves you $800 per year, that’s a $16,000 increase to your home’s value. This number is supported by the U.S. Department of Energy’s Lawrence Berkeley National Laboratory (Berkeley Lab), which found that homebuyers would pay an extra $15,000 or more for a home powered by solar. 

Real estate website Zillow released a consumer housing trends report that revealed 67% of homebuyers considered energy efficiency to be a “very to extremely important” factor when choosing a home. The same report found that these buyers were willing to spend an additional 4.1% for a home powered by solar energy. As of 2024, the median U.S. home value is around $420,800, meaning you could get an additional $17,250 for your solar-powered property. In solar-friendly regions, such as Arizona, this amount could be even higher.

These stats are already great news for anyone who owns a property and is considering the switch to solar, but we’ll add one more. Another survey by Rocket Mortgage found that, not only are solar-powered homes more likely to sell above the asking price, but they also sell an average of 13.3% faster than homes that don’t have solar energy. 

With all this in mind, why wouldn’t you install solar panels in your home?

Keep Reading: Are Solar Panels Worth It? A Complete Guide To Help You Decide

You can send a positive message to your neighbors

Here’s a fun one: adding solar panels to your property will send a positive environmental message to your community. Who knows, you might even inspire other homeowners on your block to join the green revolution! The more that solar technology spreads, the more it will generate a unified spirit of teamwork that shows people are collaborating to create a cleaner and more sustainable tomorrow.

They’re low maintenance

Finally, let’s address a key concern people have about solar panels. You’ll be happy to know that solar panels are renowned for being low maintenance, requiring minimal upkeep to maintain optimal performance. Most modern solar panels are designed to withstand harsh weather conditions and built to last 30 years or more with minimal intervention. 

Routine maintenance might include one or two yearly cleans to remove the accumulation of dust, dirt, debris, and bird droppings, but that’s nearly all you’ll have to worry about. Solar systems usually come with a warranty in the 25-year range, providing peace of mind and assurance that, should something go wrong, it’ll be addressed promptly. 

On top of that, choosing a reputable solar provider also means you’ll have support when you need it. For that reason, we always recommend choosing solar installers that have been around a long time. The last thing you want is to install a solar system and have your provider disappear when you need them most. 

Similar Reading: 9 Ways to Improve Solar Panel Efficiency and Output

Ready to go solar?

Perhaps you’re convinced by the benefits or you’re ready to learn more. Whatever the case, you’re in the right place. At Sun Valley Solar Solutions, we're passionate about providing renewable energy alternatives throughout Arizona. We've helped install thousands of solar power systems to homes and businesses across the state, and we’d love to help you see if solar power is right for you. 

It all starts with a free, no-obligation consultation where we discuss your energy usage, analyze past utility bills, and answer any questions you have about solar energy. After that, we’ll do a preliminary design that addresses your solar energy goals and provide you with a no-obligation estimate and initial ROI calculation. We’ll also help you explore various financing options and provide details about solar incentives that can help you offset the purchase price. 

If you’re ready to get started, contact our team now. If you’d like to learn more about whether solar is right for you, check out our free guides, ‘Is Solar Right For Your Home?’ and ‘Is Solar Right For Your Organization?’