Residential Solar Panel Costs and Savings Now

Perhaps, the single most common question we’re asked by homeowners contemplating residential solar is how much savings is possible. It’s a fair question, and one that we’re happy to answer. Here are just a few of the financial details to help you make your decision to go solar or not.

The Initial Cost

An installed, residential solar system in Arizona costs approximately $2.79 per watt prior to incentives. This amount is fairly consistent among cities in the greater Phoenix area, as well as in Flagstaff and Tucson. After claiming the federal tax credit of 26 percent and Arizona’s state tax credit, the price drops to just $2.00 per watt. In other words, the average cost of a 5kW system may cost around $14,000 before incentives and just over $9,000 after claiming the incentives.

Why Arizona Homeowners May Want to Consider Solar

The growth in solar power can be connected to Arizona’s Renewable Portfolio Standard law which requires the state’s investor owned utilities (IOUs) to obtain 15 percent of their power from renewable sources by 2025. If they aren’t doing this, they will receive fines.
There’s also the simple fact that Arizona gets more sunshine than any other state in the United States. Consider that solar panels in Arizona produce nearly three-quarters more power than in cloudier states like Washington, New York or Ohio. Greater solar output means that fewer solar panels are needed to achieve a desired output.

What About Net Metering?

In December 2016, net metering was repealed by the Arizona Corporation Commission (ACC) and was replaced with a system that is somewhat less generous, but still gives homeowners something similar to retail rates for excess solar power they export to the grid. This system is referred to as feed-in tariff rather than net metering.

In the case of APS, they value exported solar generation at 10.45 cents per kWh generated. That’s a fairly good deal when you consider that the average cost of electricity is 12.12 cents kWh. For 1 kw of solar panels installed on a south-facing roof in the greater Phoenix area, you can typically expect to generate 1,752kWh each year. And, the average 2500 square foot home in the greater Phoenix area will require approximately 25 panels to be fully powered.

Want to learn more about residential solar panels and the savings you may be able to gain? Call the experts at Cool Blew Solar today.

FAQ's

Is Solar Energy Expensive?

The size of your panel installation and the needs of your home will affect your costs. The average net cost of a 5.69kW system is $13,838 cash after 30% rebate (according to solar-estimate.org). An average-sized system can cost up to $35,000. Larger installations will require more hardware, planning and construction time. This can further increase costs. While solar panels are expensive, they have many distinct benefits. Cool Blew Electric & Solar’s experts can assess your situation and goals and recommend a cost-effective system to meet your needs.

How Much Can I Save By Installing Solar Panels?

An average-sized system (5 kilowatts) can reduce up to 50% of your monthly electricity bill. A 5.69kW system would offset 100% of your energy usage if your typical monthly bill is $138. Over a period of 20 years, these savings can add up to $30,000, based on your location and energy usage.

How Long Would It Take to Recoup My Solar Investment by Solar Energy Savings?

With a 5.69kW Solar system you would recoup your savings in 7 years and 2 months but with continuous Utility increases every year your Return and Investment will be much sooner.

What is a Solar Lease Program?

The Solar Lease Program has been one the most popular option that homeowners have chosen over the years. Solar Lease programs gives homeowners the opportunity to take advantage and put Solar on their homes and a guaranteed savings from their Utility for little to no money out of pocket. Most Leases are 20 year power guarantee from the solar provider and includes fixed monthly payments, no repair cost, fully insured and warrantied for the life of the system.

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