Your Guide to 2023 Solar Panel Pricing for Arizona Homes
If you‘re an Arizona resident considering adding solar photovoltaic (PV) arrays to your home this year, the first question that likely comes to mind – how much does residential solar installation cost? With panel technologies advancing and energy prices fluctuating yearly, what should you budget for a solar system that meets your household‘s needs?
This detailed reference guide is designed to give Arizona homeowners like you an accurate and thorough understanding of current pricing for local solar panel systems and projected long-term savings. Whether just starting your research or ready to get quotes from top area solar installers, use the valuable cost metrics and projections outlined below to make the smartest decision for your home and financial future.
We‘ll analyse everything from:
- Itemized costs beyond simply solar panels
- Equipment options and electric usage variables affecting system sizing
- Total expenses for typical solar configurations
- Projected energy bill savings over decades
- Applicable incentives that can significantly reduce net costs
Let‘s dive into the key data Arizona homeowners need to determine if solar power is a worthy home upgrade delivering significant long-term financial benefits.
Complete Breakdown of Solar Panel System Expenses
When weighing whether to install solar in your Arizona home, it‘s important to first understand that panels themselves make up around 35-40% of total costs on average. The additional equipment and services required for a full working system add to the price tag:
| Expense Category | Portion of Total Cost |
|---|---|
| Solar modules | 35-40% |
| Inverters | 10-15% |
| Racking, wiring | 10-15% |
| Batteries (optional) | 10-15% |
| Permits, inspection | 5% |
| Installation labor | 15-20% |
| Other | 5% |
So while a base solar panel unit price of $2.64 per watt serves as a handy baseline for cost calculations in Arizona, the actual system pricing you‘ll be quoted combines several line items.
Arizona Solar Panel System Size and Configuration Options
Another factor determining the final expense solar shoppers face is the system specifications tailored to their home. As Arizona averages among the highest electricity consumption nationwide driven by heavy cooling demands, required solar array sizes may prove larger than other regions.
Energy Usage
To produce enough renewable energy to significantly curb or eliminate your home‘s grid power purchases, the solar system size must align with your historical annual energy usage. Reviewing past electric bills to understand your household‘s typical annual kilowatt hours (kWh) consumed provides the necessary data.
Typical array sizes Arizona homeowners commonly consider include:
- 5 kW system
- 7.5 kW system
- 10 kW system
- 12.5+ kW system for larger properties
Equipment Choices
Higher efficient panel models like premium monocrystalline solar collect more energy but at a trade-off of increased per watt costs. Conversely, more budget friendly polycrystalline solar options carry lower electrical output ratings that require larger overall array sizes to meet the same energy demands.
When obtaining quotes from local solar providers, be sure to ask about efficiency variances in the proposed panel components and how that factors into right-sizing your system. Upgraded inverter and racking equipment can also enhance solar array capabilities and lifespan at incremental expense.
Current 2023 Pricing for Typical Arizona Solar Installations
Now that we‘ve covered the elements that compose a complete solar system tailored to your home and energy needs, what actual price ranges should you expect during your Arizona solar buy journey this year?
The table below outlines current approximate costs for some of the most common solar panel system configurations Arizona homeowners are installing:
| System Size | Cost Before Incentives | Net Cost After Tax Credits |
|---|---|---|
| 5 kW | $13,200 | $9,240 |
| 7.5 kW | $19,800 | $13,860 |
| 10 kW | $26,400 | $18,480 |
| 12.5 kW | $33,000 | $23,100 |
These ballpark figures demonstrate:
- Total expenses rise in step with larger system capacities
- After deducting the 26% federal solar tax credit, net costs to homeowners are significantly reduced
Based on your property constraints and household electrical load determined from prior utility bills, your solar professional can offer a more precise quote tailored to your situation. Be sure to ask providers to break down overall costs across equipment components and labor rather than just the aggregate system price.
Arizona Electricity Bill Savings and Solar System Payback Horizon
The return on investment timeline and cumulative money saved over your solar array‘s functional lifespan are the true indicators of the value proposition. By offsetting high priced utility power purchases, the system eventually pays for itself through ongoing energy bill reductions.
For the average Arizona household spending $170 monthly on electric services powered largely by fossil fuels:
- A sufficiently sized solar array can eliminate 90% or more of current grid energy consumption
- At local utility rates, that results in $150+ monthly savings once the renewable energy system activates
- The total installed solar costs then amortize in approximately 8-10 years
If we consider the typical 25 year warranty offered on premium solar installations in Arizona, that leaves a decade or more of free solar electricity you can use to power your home. Over $18,000 in cumulative energy cost savings is attainable in that 15 year post-payback period.
And should you sell the home beforehand, the increased property value with an owned solar array instantly transfers to the buyer – a major sweetener for quick sales in Arizona‘s hot real estate market!
Applicable Incentives Bringing Down Effective Solar Equipment Expenses
While the rough costs outlined above represent what Arizona solar customers pay before any other reductions, significant incentives at both state and federal levels can further cut net outlays by half or more.
As part of the Inflation Reduction Act, the 26% federal solar tax credit on total costs continues through the end of 2032. Together with additional Arizona state incentives like sales tax exemptions and rebates for excess solar energy fed back to the grid, the savings add up.
Between upfront discounts and the system‘s offset to your current electricity bills, most Arizona homeowners find their solar equipment investment fully recovers in 8-10 years. And from that point forward, your roof generates free renewable energy while Appraising your home‘s resale value.
Ready to Go Solar? Compare Quotes from Top Arizona Installers Today
If powering your home with solar aligns with your family‘s financial objectives while supporting sustainability, connect with these exceptional local solar providers known for transparency, expertise and proven performance history:
- American Array Solar & Roofing – 5-star customer rated Tucson company specializing in premium monocrystalline panel installs
- Solar Topps – Veteran family-owned Phoenix area solar installer trusted for quality craftsmanship since 2009
- Method Solar – Locally owned Tuscon business handling consultations, equipment supply and pro installs in-house
I hope the facts and projections supplied in this guide offer clarity regarding realistic pricing, savings and time horizons involved with transitioning an Arizona home to solar energy. Get started today by requesting solar quotes from reputable area professionals.
