Solar Panel Energy Savings

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Regardless of whether you’re interested in reducing your electricity bills, lowering your environmental footprint, or both, this is a great time for installing home solar panel systems. When you consider that the Valley of the Sun averages more than 300 days of sunshine every year, switching to solar energy makes both dollars and sense.

Installation Costs

According to data from, the installation costs for home solar energy systems have dropped over 20% since 2016. As of 2021, the national average cost is $2.76 per watt before deducting the 26% federal solar tax credit for systems installed by the end of 2022. Systems installed before the end of 2023, will be eligible for a 22% federal tax credit. The average Arizona cost for a 6-kilowatt system, depending on your location, current electricity needs, and square footage of your home is $16,020. The total cost after the federal solar tax credit is applied, reduces installation costs to $11,880. Other possible rebates and tax incentives may further reduce installation costs.

Solar Hardware

The installation costs for a typical home solar panel system include the cost of the panels, auxiliary equipment such as inverters, batteries, permits, and labor. Inverters are an essential piece of equipment. Inverters convert direct current (DC) electricity to alternating current (AC) electricity in your house. Depending on the design of your solar system, you may choose to install microinverters which are used with every one or two solar panels. The other option would be to install a string inverter which ties together all solar panels. Energy battery storage isn’t a requirement for a home system that’s tied to the national power grid, though it can be helpful to keep panel systems running when the sun isn’t shining due to weather conditions or after dusk. Solar installation labor varies from contractor to contractor, but it’s generally about 10 percent of the total installation costs.

As with any consumer product, you get what you pay for, meaning the cheapest solar panels offered by some national and local installers may not be best in terms of money saved on future utility bills, system efficiency, warranties, and longevity.

Buy Local

Not all solar contractors are created equal. It’s a wise decision to choose an installer with credentials and experience to maximize the return on your investment. Cool Blew Solar is an SRP certified contractor and was named a top ten qualified contractor by APS. Offering top-of-the-line products from leading brands, we can help you better understand the significant savings of going solar. Call Cool Blew Solar today at 623-234-2836 to schedule a consultation.