The 5 Best Solar Companies in Arizona of 2024 – MarketWatch

At $2.53 per watt, Arizona’s average cost of solar is lower than the national average of $2.85. Based on this figure, an average 6 kilowatt (kW) solar system would cost around $15,180 in Arizona. Here is a table that gives an overview of the pricing of Arizona’s top installers.

*Pricing is based on responses to two surveys we conducted in 2023 of 2,000 total homeowners with 8 kilowatt (kW) solar systems as well as pricing information obtained directly from SunPower, Tesla, Palmetto and local providers. Your cost may vary.

Based on our detailed surveys and analysis, the following are the best solar companies in Arizona:

Over 360 solar companies operate in the state of Arizona. With such a wide array of options, homeowners may find it difficult to choose an installer that suits their needs. Below are four important factors to consider when making your decision.

• Cost and financing: Arizona’s average cost of electricity is lower than the national average. In terms of savings, this means that for every kilowatt-hour of solar power generated, Arizonans will save slightly less money than residents of most other states. However, by choosing an installer that offers a lower system cost, homeowners can ensure maximum savings. When it comes to the purchase cost of solar, choose an installer that offers flexible payment options such as solar loans and leases if you do not plan to pay in cash.
• Equipment quality and warranties: Arizona’s strong sunshine may be beneficial when it comes to solar energy production, but the state’s hot summers can also lead to faster degradation of the solar panels. This makes it important to choose an installer that offers solar panels with lengthy performance guarantees and product warranties. The same also applies to other components — the longer the warranties, the more reliable a system’s performance over time.
• Trustworthiness: A large number of solar installers operating in a state can result in competition that leads some companies to resort to deceitful marketing practices. Some solar companies in Arizona have been accused by customers of failing to deliver on promises. Recently, the state’s Attorney General sued two solar companies for misrepresenting the sale and installation of residential solar panel systems. As such, choosing a trustworthy installer is of utmost importance, especially considering the size of the investment.
• Services offered: Despite Arizona’s low electricity costs, residents still pay over $400 on average in utility bills every month. While solar panels can help lower this number, other energy efficiency upgrades can help bring it down even further. Some examples of ways to save on utility bills include insulation upgrades and lighting retrofits. Homeowners sifting through solar installers may benefit from shortlisting companies that offer any related services they may want or need.

When looking at the numbers, the rapid growth of solar power in Arizona becomes clear. According to the SEIA, the state already has 6.5 gigawatts (GW) of installed solar energy — enough to power over 1 million homes — and is set to add another 9.8 GW over the next five years. The U.S. Energy Information Administration (EIA) reports that solar power has helped reduce the share of coal in the state’s energy mix from 38% in 2013 to just 12% in 2022.

While solar power makes up a significant portion of Arizona’s energy mix, it is residential solar that has boosted the growth of the technology in the state. According to the Pew Research Centre, Arizona has the second-highest number of residential solar systems in the country.

This rapid adoption of solar energy has also impacted Arizona’s employment numbers. In terms of job growth in the solar industry, the Interstate Renewable Energy Council reports that Arizona ranks sixth in the U.S.

Multiple factors make solar panels a worthwhile investment in Arizona, ranging from the state’s conducive climate to attractive incentives and a low average installation cost. Here is a summary of the factors that make solar a worthwhile choice in Arizona:

• Arizona is the sunniest state in the country. With over 300 sunny days, homeowners can generate massive amounts of solar power, thereby offsetting equally large amounts of grid power costs.
• Arizona’s average cost of solar panels is lower than the national average. At just $2.53 per watt, a typical, 6 kW system would cost about $15,180 and have an exceptionally short payback period of just over six years. Most systems last up to three decades, making going solar a lucrative investment.
• Homeowners in Arizona who switch to solar enjoy several incentives, such as the 30% federal tax credit and a $1,000 state tax credit. Arizona also exempts any sales or property taxes on solar panels.

Common Concerns

Outside of the high upfront cost, there are few drawbacks to installing solar panels in Arizona. The benefits of net metering have gradually been slashed in the state, meaning homeowners who generate excess solar power cannot save as much on power bills as they could a few years ago. However, customers who choose to install a solar battery will be the least affected by the state’s recent net billing changes.

Arizona receives abundant sunshine and has several financial incentives available for solar panel owners. Solar homeowners can combine local incentives with the 30% federal solar tax credit to maximize savings when going solar.

• Home solar systems are exempt from sales and property tax credits in Arizona while earning a state tax credit of up to $1,000.
• Depending on your location in Arizona, you may qualify for added incentives from local utility companies or municipal governments.

Below is a brief overview of the solar incentives available in Arizona.

Federal Incentives

Arizona residents are eligible for the solar Investment Tax Credit (ITC), a nationwide incentive that offers an income tax reduction when homeowners switch to solar power. The federal tax credit allows you to deduct 30% of your total system cost from your federal income tax burden, resulting in average savings of over $4,500 in Arizona.

Statewide Incentives

Arizona offers three main state solar incentives.

Local Incentives

Depending on where you live in the state, you can find additional solar incentives in certain locations of Arizona. For example:

In addition to solar energy, Arizona offers multiple incentives for energy efficiency measures and other types of home upgrades. You can check the complete list using the Database of State Incentives for Renewables and Efficiency (DSIRE).