Why Invest in Solar Energy?

Why Invest in Solar Energy?

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Solar energy is sunshine you can easily tap into with a home solar panel system installation. The Valley of the Sun is fortunate to have at least 300 days a year of sunshine. Even though availability and intensity of the sun’s rays varies depending on weather conditions, time of day, and latitude, you can be certain as an Arizona homeowner that you can capture enough sunshine to lower your monthly utility bills.

Solar Energy in Arizona

Arizona is one of the top five states for generating clean electricity from solar energy. Our state ranks high on this list because Arizona averages seven hours of peak sunlight daily. According to Save On Energy, electricity rates in Arizona have increased by 3.5% from 2021 to 2022. In contrast, solar prices have decreased by 53% in the last 10 years. The Energy Information Administration has collected data nationwide, and Arizona’s monthly electricity bill averages about $107.

Solar Panel Costs in Arizona

The cost of solar systems in Arizona depends on many factors, such as the number of solar panels required to power your house, solar installation prices, local permits, and additional equipment including solar backup batteries. Arizona’s median size of home solar systems installed is larger than the US median size, yet the price per watt is less expensive. A typical home system installation of 5.8 kW is priced at $2.88 per watt with a total cost of $16,613. An average size solar installation system of 8.2 kW averages $3.76 per watt with a total cost of $31,046. These costs are based on the Tracking the Sun report from the Lawrence Berkeley National Laboratory.

Solar Power Financing Options in Arizona

There are four main ways to pay for solar panels, and each one has its advantages and disadvantages. Cool Blew Solar installation experts are happy to explore these payment options to determine what options would work best for you.

  • Cash: No interest or loan fees, but greater upfront costs. You would be eligible to apply for the Residential Clean Energy Credit and incentives.
  • Power purchase agreement: The solar company owns and provides maintenance on the solar panels. You only pay for the energy used, though this option is ineligible for solar tax credits and incentives.
  • Solar lease: Pay a fixed monthly price, but the company owns the panels. This financing option is ineligible for solar tax credits and incentives.
  • Solar loan: Easy to apply, not as expensive upfront, but can result in high-interest fees.

Whether you’re looking to install panels on your home, or you’d like to look into solar battery backup options, reach out to your local professionals at Cool Blew Solar today. Call us at 623-234-2836 to schedule your appointment any day of the year for a free estimate.