30% Solar investment tax credit

Residents of Peoria, AZ, are eligible for a 30% federal tax credit or investment tax credit (ITC) on solar panels. This significantly reduces the upfront investment of installing solar panels, labor, accessories, and equipment. If your annual income is not sufficient for a tax credit, you may be eligible for a direct payment against the ITC.

25% Solar energy tax credit

On top of the 30% ITC, the residents of Arizona are also eligible for a 25% state solar energy credit up to $1,000. This and the federal ITC together result in significant cost savings.

Net metering

The residents of Arizona who export energy back to the grid get a partial on-bill ‘export credit,’ which is less than the full retail rate of electricity. This provides additional savings every month on the surplus energy your solar panels produce.

Electricity bill savings

The average electricity consumption per household in Arizona is 1,030 kWh/month. If your house is bigger than a condo, you are likely to consume much more than this. A 9.53 kW average-size solar panel produces electricity at a cost of 5¢/kWh compared to fossil fuel energy, which is likely to increase to 22¢/kWh over the next 25 years.

This means you will recover the net cost of an average solar panel, which is $17,278 between 8.2 and 10 years. Thereafter, your energy bills are zero while you get an export credit from the grid.

Appreciation in the cost of the property

If you purchase the solar panels outright rather than leasing them, it increases the resell value of your home by up to 3%. Solar panels are valuable assets that will result in substantial energy bill savings for the new owner.