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Solar PanelsSpend enough time living in Arizona and you’ll hear all the arguments for installing solar panels on your home: You live in a desert, cloudless skies are normal, it never rains, the capital city is nicknamed the “Valley of the Sun.” And while someone could fairly argue that Arizona was made for taking advantage of solar energy resources, you may still find yourself on the fence when it comes to investing in a solar energy system. After all, solar panels are expensive. So are they really worth it for Arizona homeowners?

If you’ve recently found yourself asking this question, we have some good news for you. Solar panels provide local homeowners with tangible value in the form of monthly energy savings. And since solar panels can even add value to a house, they are a solid investment all around.

How Much Money Can You Save After Installing Solar Panels?

Since energy usage varies from household to household, the best way to figure out how much you’ll save with a solar panel system is to consult an experienced solar contractor. However, when market expert EnergySage compared data from thousands of homeowners who went solar, they found that solar panel systems tend to offer a net savings between $38,500 and $52,200 over the course of 20 years.

Those who use a lot of energy in their home often see the biggest impact in their monthly electricity bills, as do those who invest in solar panel systems known for their efficiency. The majority of solar panels fall in the 14% to 18% efficiency range, meaning that they’ll convert between 14% and 18% of all light that hits the panel into usable energy. Some higher-end systems promise better performance, with efficiency rates that hover closer to 20%.

How Much Does It Cost to Install Solar Panels in Arizona?

It probably costs less than you think. While a quick internet search will provide you with several cringe-inducing six-digit figures, these numbers all fail to account for the wide variety of financial solar incentives available in Arizona. So while the average cost of a solar system is around $13,200 in Arizona, most homeowners wind up paying closer to $6,400 after federal and state tax rebates.

That’s not the only way Arizona residents can save, though. Many solar financing options are designed to make investing in solar energy incredibly accessible. Between the $0 down payments available to qualifying homeowners and the monthly energy savings that can offset monthly payment amounts, it’s possible to start saving immediately. Your solar contractor will present you with a personalized savings plan.

Does Arizona Have a Solar Tax Credit That Helps Cover System Costs?

Yes, Arizona homeowners can take advantage of a host of tax credits to help reduce the cost of their solar systems. These include the:

  • Solar Investment Tax Credit (ITC) – Available to all homeowners in the United States, this tax credit allows you to reduce your federal income taxes by up to 26% of the cost of your solar system in the years you install it.
  • Residential Arizona Solar Tax Credit – This tax credit reimburses 25% of the cost of your solar panels (up to $1,000) off your personal income tax in the year you install the system.
  • Solar Equipment Sales Tax Exemption – Thanks to this exemption, you won’t need to pay sales tax on your new solar panel system.
  • Energy Equipment Property Tax Exemption – While any home improvement project that increases home value will likely result in increased property taxes, installing a solar panel system won’t increase your annual property tax amount.

As you can see, going solar in Arizona provides plenty of ways to save.

Do Solar Panels Increase Home Value in Arizona?

Yes, installing solar panels on your Arizona home will increase its value. When you think about it, this makes perfect sense. The same monthly savings you find attractive will prove a compelling and marketable feature should you decide to list your home. Of course, finding the best return on investment (ROI) for your solar panel system requires finding the right buyer. Certain people find solar panel systems more appealing when purchasing a home, and you’ll likely find buyer attitudes varying depending on how you’ve decided to finance your system.

Do you still have questions that need answered before you go solar? FOR Energy is ready to answer them for you! Contact us today to schedule your free consultation.

“FOR Energy is the greatest!”


FOR Energy is the greatest! Going SOLAR could not be more painless and efficient, from initial contact through design, installation and start up!!!

Beth Fruitfly

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