Arizona is known for its beautiful desert landscapes, hot summers, and the Grand Canyon, of course. But you might not know that Arizona is also the sunniest state in the U.S., with more than 300 sunny days a year. This makes it the perfect place to get power from the sun.
With almost 300 solar companies in Arizona, it may seem like an impossible task to find the best one. Our team has looked into dozens of solar companies and made a list of the best ones in the state to make the process easier. All of the prices in this review are for a professional solar installation of 5kW (5,000 watts), which is the average size for a home system in the U.S.
Solar Incentives in Arizona
Several tax credits and other incentives in Arizona can help lower the cost of solar systems for people who live there:
The Residential Solar Energy Credit in Arizona lets people get a tax credit for up to 25% of the cost of their solar system, up to a maximum of $1,000. If the tax credit is more than what you owe in taxes, the extra credit will carry over to the next year for up to five years. No matter how many qualifying solar energy devices are on the property, each household can only get one credit.
Solar and Wind Equipment Sales Tax Exemption: Homeowners don’t have to pay sales tax on qualifying solar energy systems because of the Solar and Wind Equipment Sales Tax Exemption. This only includes the system itself, not extras like solar batteries.
Energy Equipment Property Tax Exemption: This tax break keeps homeowners from having to pay more property tax because a solar panel system makes their home worth more.
You can also apply for the federal solar tax credit, which will lower your taxes by 30% on the cost of your solar system. For your system to qualify, it must be put in place between 2022 and 2032. The credit goes down to 26% in 2033, and if it isn’t renewed, it will end in 2035. If you owe less in taxes than the credit, it will carry over to the next tax year.
How to Pick the Best Solar Business
Consider the following things when you’re looking for the best solar companies in the Grand Canyon State.
Availability
Homeowners should make sure that any solar company they are thinking about works in their area. Some companies say they are available in a certain state, but they only cover certain ZIP codes. For example, a company advertising its coverage in Arizona might serve people in Tempe and Mesa but not in Peoria.
Warranty
We suggest looking for solar companies with strong guarantees. A typical equipment (or manufacturer’s) warranty lasts 10 to 12 years, and a performance warranty lasts 25 years. Some companies go above and beyond by giving both types of warranties for 25 years. Extra warranty benefits could include longer warranties for your add-ons, like solar batteries and EV chargers, and coverage for roof damage or leaks caused by solar installations.
Panel and Choice of Add-on
Different companies have different options for panels, inverters, and other system add-ons from well-known brands. If you have your heart set on a certain brand for your solar project, look for companies that sell it.
Some companies decide to make their own products. Even though this makes them less different, it gives them a design advantage. Since they control how each part of the system works, each part can be made to work better with the others. The result is a system that is streamlined and designed to work at its best.
Also, keep in mind that high-quality panels are expensive. The more efficient the panels are, the more you’ll have to pay at the start. But in the long run, it will be worth it to spend as much as you can on the best panels you can afford.
History of the company and the name’s reputation
Some solar companies have been in business for decades, while others are just well-known electronics and technology companies that have expanded into clean energy. Companies that have been in business for 15 years or more have a bigger advantage than new companies that have been in business for less than five years. As the number of people who want to use solar energy grows, so will the number of new companies that want to cash in on the trend.
Solar company in Arizona is best for you
Arizonans who want the most complete protection plan should think about Palmetto Solar, our top pick. Vivint Solar may be a better choice if you want more options for your solar project, like being able to give your service to new homeowners. If you want to buy some of the most efficient solar panels for your home, SunPower is the best company to go with.
Doing research is the best way to find the best solar installer. Ask at least three solar companies for quotes, and then compare their services, products, and customer reviews. Also, check to see if the companies you’re thinking about are in your area.
FAQ
How will the Arizona heat affect my solar panels?
In cities like Scottsdale and Chandler, where temperatures can reach the 100s, the weather is very hot. Your solar panels could be hurt by these high temperatures. Even though solar panels are made to last outside for more than 20 years, their efficiency can drop by 5% to 10% in hot weather.
Every solar panel has a temperature coefficient rating that says it can handle temperatures of 77 degrees Fahrenheit (25 degrees Celsius) and above. This rating shows what percentage of energy efficiency is lost when the temperature outside goes above 77 degrees. Every degree that the temperature goes up, the efficiency goes down by a certain amount. Most solar panels have a coefficient rating between -0.3% °C and -0.5% °C. Solar installers in Arizona know how hot it gets and can help you find the best panels for the heat.
Is net metering available in Arizona?
No, Arizona does not offer net metering. In 2016, a net-billing program took the place of the service. As with net-metering, customers who use net-billing get paid for any extra energy their system makes and sends back into the grid. But the credit rate for electricity that is made in excess is less than what it cost to make the electricity in the first place.
For example, your utility company may charge you $0.12 per kWh to use energy, but your excess credit rate will only be $0.09. This rate changes every year and is different for each utility company in the state. These credits are put back on your electric bill as a credit.
How can I maximize my savings on a solar system?
Using incentives, rebates, and tax credits from the state and federal governments is the best way to save the most money on a solar system. To do this, you can either get a loan for your solar system or pay for it all at once.