The Valley of the Sun basks in over 3,800 hours of sunshine annually, making it a solar paradise. If you’re considering harnessing this natural bounty to power your home in 2024, understanding the costs involved is important.
Price per Watt: The Baseline
The primary cost factor is the price per watt of your system. In the greater Phoenix area, expect to pay around $2.46 per watt to $2.64 per watt on average including installation. This translates to roughly $11,910 for a 5-kW system, one of the most common sizes for residential installations. However, remember, this is just an average. Prices can vary depending on several factors, including:
- Panel efficiency: High-efficiency panels cost more but generate more power per square foot, potentially reducing system size and overall cost.
- Brand and warranty: Renowned brands with longer warranties command higher prices.
- Roofing complexity: Installation on complex roofs or requiring additional electrical work can be more expensive.
- Permits and inspections: Local fees and permits add to the final cost.
Beyond the Panels: Additional Expenses
The price per watt covers the core system, but several other expenses come into play for your home solar panel system:
- Inverters: These convert DC solar power to usable AC electricity, with larger systems requiring more powerful and potentially more expensive inverters.
- Mounting systems: Different roof types require specific mounting systems, impacting cost.
- Monitoring systems: Optional but very helpful, these systems track your energy production and consumption.
- Financing options: Loans or leases can spread out the cost, but interest adds to the total outlay.
Shining a Light on Incentives
The good news is that going solar comes with generous incentives that can significantly offset the initial cost:
- Federal Solar Investment Tax Credit (ITC): This 30% tax credit applies to the total system cost, offering substantial savings.
- Arizona Residential Solar Tax Credit: This state-level credit provides an additional 10% deduction, capped at $1,000.
- Net Metering: Excess solar energy fed back to the grid via APS or SRP earns credits you can use to offset future electricity bills.
Cool Blew Solar and Clean Energy
Would you like to learn more about the costs of installing a solar panel system? Just call our local installation experts at Cool Blew Solar at 623-234-2836. We’re here to answer all your solar-related questions and guide you on your journey to leveraging the true value of the sun’s energy. Let the Arizona sun illuminate your path to solar energy independence in 2024 and beyond!