Solar Panels Phoenix: Opportunities for Solar Panel Power in Phoenix, Arizona



    Phoenix is the most densely populated city and capital of the U.S. state of Arizona. With a 2015 population of 1,563,025 people, Phoenix is the sixth most heavily populated city in the United States. It is the only state capital with a population of more than one million residents.


    This city is the anchor of the Phoenix metropolitan area, commonly dubbed as the Valley of the Sun, which is a part of the Salt River Valley.




    Phoenix has a subtropical desert climate which is characteristic of the Sonoran Desert. The summers in Phoenix are long and extremely hot and the winter season is quite mild. This city is situated in the sunniest region in the world. Phoenix receives 3,872 hours of bright sunshine every year, making it the major city on Earth to receive the most sunshine. Average high temperatures in summer are the highest of any major city in America.


    Unlike most areas with desert climate which undergo extreme fluctuations between day and nighttime temperatures, the diurnal temperature variation in Phoenix is restricted by the urban heat island effect.


    This city features around 300 days of sunshine, or about 85% of daylight hours annually and receives little rainfall—the average yearly total being 8.03 in or 204 mm.


    Getting To Know The Swanson Effect (See Infographic Above)


    The fossil fuels, without a doubt, are a popular energy source and may seem easy on the pocket upon first consideration. The solar power generation, on the other hand, may sound quite costly when taking into account factors like the price of solar panels, installation expenses, and so on. But with increasing demand for solar power systems, the price is steadily falling. This can be explained by Swanson’s Law that is an observation that the cost of solar photovoltaic modules is likely to decrease 20 percent for every doubling of collective shipped volume.


    According to current trends, the prices go down by 50% about every ten years. This Law is named after Richard Swanson, the creator of SunPower Corporation, a solar panel company. To fully realize the impact of this price, it is essential to comprehend that the price of natural gas – which is responsible for the generation of 90% of the UAE’s power needs – at present stands at 9 cents. So, in the United Arab Emirates at least, solar power is at present 65% of the price of the next cheapest form of power production. And its price is likely to continue to fall for the foreseeable future.


    Our natural supply of fossil fuels such as oil fields and coal is depleting quickly and sooner or later mankind will be facing a dire shortage of these fossil fuels. We would have to soon find sustainable energy resources.  Solar energy is one of these sources that generate clean, green and never ending power. We can depend on the Sun to supply this energy without running out.


    Besides being non-sustainable, fossil fuels emit poisonous fumes and pollutants that contaminate our environment. Using solar energy to generate power is an environmental-friendly venture.


    Compare ROI For Different Solar Options In Phoenix, AZ (Cash Vs. Loan Vs. Lease)


    Arizona Comparison Graph


    On the average, a solar power home system of 5kWh will cost about $20,000. That sure is a big number, but the first form of reward rolls in from the United States federal government, which offers you a 30% tax credit for installation of a solar power system in your home. This will cut down the overall cost to $14,000. The money that you invest does not disappear into thin air, either. The value of your establishment will be increased by $20,000, but the Renewable Energy Systems Property Tax Exemption from the State allows you to eliminate that newly added equity from your tax bill. In a span of twenty-five years, you would have earned a profit south of $30,000.


    Phoenix experiences long, severely hot summers and rather warm, mild, short winters, making air conditioning a necessity. It can be adequately powered by a solar energy system as Phoenix receives a generous amount of sunshine, and you will in due course collect the benefits of the not having to depend on fossil fuel power generated far away by some power company.


    Return on investment in every individual case differs slightly based on your financing method, and those payment methods are outright cash, loan funding, and leasing. Don’t let the $20,000 price tag encumber your interest in a solar power system for your house.



    Getting Solar Panels with Cash in Phoenix, Arizona






    A cash purchase always yields immediate, large savings for the buyer. With no loan payments to worry about, you reap 100% of the energy savings personally, along with the 30% federal tax redemption. The value of your estate as a homeowner goes up and you can sell any surplus power generated.




    Initially, you have to pay a large sum of money.


    Purchasing Solar Panels with Loans






    For most homeowners, paying for solar energy with a home equity loan is the most convenient option. Because you have taken a home equity loan, you not only get to benefit from the 30% federal credit, but you also get to deduct the interest on the loan. You get to enjoy all of the incentives and benefits without any paying any cash out-of-pocket.




    The pattern of return, on investment in case of getting loan funds, is inconsistent. You’ll save money while you are paying off the interest but you won’t make any profit while paying off the principal amount.


    Leasing Solar Panels in Phoenix, Arizona


    Acquiring a solar panel system on lease comes with its own set of pros and cons:






    At the beginning, you do not have to pay any money out of your pocket. You don’t have to hassle over repairs or maintenance. Leasing is a great payment method to get a solar power system if you don’t have enough money right away, or if you are hesitant to take out a loan. In Arizona, the cost of electricity is high, so you can make a profit by saving money on power generation.




    You do not receive any impressive profits right away. You have to remember that with a lease, you do not get the residual value of the solar power system as you do not have ownership of it. You also do not benefit from any of the tax credits or other state incentives of home solar ownership, other than money saved on power costs.


    Renewable Portfolio Standard (RPS) of Phoenix, Arizona


    RPS is an estimate of state’s commitment towards introducing renewable, clean energy sources to the system. This presents how dedicated a state is in motivating its citizens to lower their dependence on fossil fuels and make a switch to greener energy resources. If a state has a higher RPS number, it implies that it gives its citizens more incentives for financing their solar power venture.





    The RPS is the tool that urges utility companies to supply green energy, rather than using fossil fuels. Though there are some states that fare much better when it comes to RPS limitations, Arizona’s RPS number is pretty decent. It has a mandate that by 2025, nearly 15% of power must be generated by renewable sources such as solar power.


    Comparison of Arizona to the Other States


    The state of Arizona has the 6th largest solar carve-out in the United States. This means that a definite percentage of energy (15% in case of Arizona) in the state must be produced by renewable sources such as solar energy.


    Net metering requires each power company to scrutinize how much energy is produced and to credit you for any surplus over what you utilize. Arizona has brilliant net metering laws.

    Additional Considerations for Phoenix


    Solar performance payments are meant to reward citizens for the production of solar power. A concept of these rewards is nonexistent in Arizona. Solar performance payment is a bonus paid to homeowners producing solar power. This has caused the RPS number of Arizona to fall.


    But on the other hand, Phoenix is among the foremost sunniest cities in the United States, its geography, weather pattern and climate are quite favorable for solar power production.



    Phoenix, Arizona’s Overall Rating




    Phoenix, Arizona could fare better when it comes to solar rebates and RPS numbers but the state has showed itself as a leader in encouraging residents to invest in solar power.


    The final decision is yours to make as the return on investment also depends on every individual’s unique financial situation and energy requirements. Whatever happens, one way or another you would receive a handsome profit on your investment in preserving our environment.


    In Arizona, solar purchases are exempt from both state sales tax and property taxes, effectively lowering the upfront costs of installing and keeping solar on your property.


    Due to some positive changes in the Arizona Renewables Portfolio Standards (RPS), solar use has tripled in the state in the last few years. And it looks like that positive momentum will continue in the near future.


    Some areas of the state (e.g., Phoenix and Tucson) are even offering to install solar panels on your roof for free—if you cannot afford to buy to them. While this is not as profitable or cost-effective as buying, it gives more homes in the state the opportunity to benefit from clean, efficient solar energy.