Can You Really Get Free Solar Panels In Arizona?

Solar Power Questions and Answers
Written By Joshua Hudson

Understanding Solar Energy in Arizona: Unmasking the Myth of 'Free Solar'

At AZ Solar Consulting, we understand your desire to make the most of Arizona's abundant sunlight by turning to solar power, aiming to reduce your electricity bills. Arizona, blessed with ample sunshine, is an ideal location for efficiently harnessing solar energy. However, it's critical to debunk a common myth: solar power in Arizona isn't exactly 'free'. Our mission is to arm you with accurate and reliable information, helping you steer clear of any misconceptions and false claims that might lead you astray.

Debunking Misleading Marketing Tactics

As you delve into the world of renewable energy, you might come across adverts boldly proclaiming that solar power is free or even suggesting that your local utility will pay you to go solar. These headline-grabbing claims are often a ploy by less trustworthy solar businesses to draw in unsuspecting customers. The truth is, despite the long-term savings that solar energy systems can provide, they do involve an upfront investment and are not entirely free.

Shedding Light on Federal Tax Credits and Utility Buyback Programs

For homeowners considering the transition to clean energy, there are federal financial incentives, such as tax credits, that can help ease the initial cost of a solar power setup. These tax credits can potentially cover up to 30% of the total cost for eligible homeowners. But it's important to note that these deductions come into play after the solar system has been paid for, not before.

Moreover, some utility companies offer buyback programs, granting credits for any excess solar power your system feeds back into the grid. But remember, these credits don't wipe out the upfront cost; they merely help reduce your energy bills over time.

Unraveling the Misnomer of 'Free Solar'

Some companies may dub it 'free' by emphasizing the long-term return on investment. While it's true that the tax credit covers 30%, and the cumulative savings over time can potentially outweigh the cost of the system, this doesn't make it 'free'. Solar power is undoubtedly a cost-effective, sensible, and smart choice, but anyone labeling it as 'free' is not being entirely honest. The term 'free solar' typically refers to solar leasing or financing plans that require no upfront payment (subject to credit approval). In these cases, a solar company or contractor installs solar panels on your roof without an immediate cost to you. But it's crucial to realize that these plans still involve financial commitments, usually in the form of monthly lease or loan payments.

Let's not forget, the last time 'free' solar panels were ‘a thing’ in Arizona was back in 2014 when APS proposed to install solar panels on 3,000 homes. The only perk these customers received was a fixed $30 per month credit towards their progressively increasing bills.

By staying informed and choosing a reputable service provider, you can confidently navigate the realm of solar energy, ensuring that your switch to this clean energy source is as financially sensible and advantageous as it can be.

Questions to Ask When Considering Solar Options

Here at AZ Solar Consulting, we want to make sure you've got all the facts before you make the big leap. So, let's dive into some important questions you should be asking:

  1. First up, what kind of solar panels and inverters are going to be the best fit for your needs?

    Remember, not all solar panels, or as some folks call them, 'energy collectors', are built the same. The high-quality ones are like the superheroes of solar panels - they're more efficient and can whip up more energy from the same amount of sunshine. So, make sure you know what type of equipment you're getting and how efficient it is. It's all about getting the most bang for your buck.

  2. Have you thought about leasing a solar energy system?

    Leasing can be a good fit if you're not facing a tax liability. But like all things in life, there are pros and cons. When you lease, you're saying goodbye to federal solar tax credits and any chance of owning the system down the line. So, think about whether a leasing agreement fits in with your financial goals.

  3. And what happens if the leasing company goes belly-up?

    It's always good to have a plan B. If the leasing company closes its doors, do you know how that's going to affect your solar setup? Do they have a plan in place to support you? Make sure you're clear on what would happen in that scenario.

How do federal tax credits work for solar purchases in Arizona?

Now, let's talk about "free solar". It sounds great, doesn't it? Of course, there’s always a catch - most of these programs advertised as “free” involve financing options, which can sound scary at first. But the reality is, financing your own solar energy system can have some serious perks, especially here in sunny Arizona!

Here's why we think financing is worth considering:

  1. You get to call the shots:

    When you finance your own solar system, you're the boss. You get to take advantage of some pretty sweet tax incentives, like a 30% federal solar tax credit and a $1,000 Arizona state tax credit. Plus, owning the system could bump up your home's value and give you a leg up if you decide to sell.

  1. See the savings sooner:

    Financing usually leads to a quicker return on your investment. Depending on your electricity bills and the size of your system, most homeowners see a positive ROI within 7-10 years. So, you could start saving money on your energy bills sooner rather than later.

  2. Incentives make it affordable:

    Thanks to incentives like federal tax credits, going solar can be pretty affordable. And with the Inflation Reduction Act passed last year, qualifying homes can go solar with zero upfront costs. So, while it's not exactly "free," you won't be out of pocket, and you can start saving on your electricity bills from day one.

At the end of the day, the most important thing is to be informed. Find a trustworthy solar company or contractor who can guide you through the process. That way, you can make the switch to clean, renewable energy with confidence.

Last year, President Biden signed the Inflation Reduction Act, giving a new lease of life to the 30% federal solar tax credit. This credit now covers residential solar installations all the way through 2032 and applies retroactively to any solar system, or solar and battery combo, that was installed from January 1, 2022. The result? It's now easier on the pocket for Arizona's homeowners to make the switch to solar.

But wait, there's more! The state of Arizona also rolls out the red carpet for solar, offering additional perks like a $1,000 tax credit and no sales tax on solar energy system purchases. These incentives sweeten the deal, making solar even more affordable and offsetting the initial costs.

Here at AZ Solar Consulting, we like to keep things straight. We don't offer lease options anymore because, to be honest, we think most folks will find financing terms more beneficial. By financing your solar system, you can fully benefit from these tax perks, you'll own the system outright, and you'll see a return on your investment sooner.

Choose Your Solar Partner Wisely

Now, getting into solar is a bit like starting a journey, and like any journey, it's important to have a good partner. We've spent over 10 years helping Arizona homeowners embark on their solar journeys, and pride ourselves on making sure each journey is smooth and successful.

Our team of solar experts is here to guide you through the process, answering your questions and giving you the lowdown on solar panel options, financing, and incentives. We want to give you the power to make informed decisions that align with your unique needs and goals.

Download Our Free Guide:

To help you on your journey, we've put together a free guide, "Are Solar & Batteries Right for You?" This handy resource is packed with useful insights about the factors you should consider when thinking about buying a solar and battery system, covering everything from system sizing and financial considerations to environmental benefits.

Request a Free, No-Obligation Quote

Ready to take the next step? Get in touch with one of our solar integrators for a free, no-obligation quote. You'll get a personalized assessment of your property and energy needs, along with a detailed proposal that breaks down the costs and benefits of going solar with AZ Solar Consulting.

Solar energy is a pretty compelling option for Arizona homeowners who want to save on their electricity bills and do their part for the planet. While solar isn't free, the incentives, financing options, and long-term savings make it a smart financial and environmental choice.

At AZ Solar Consulting, we're all about being open and honest about solar energy in Arizona. We're here to put your needs first and aim to be your go-to solar partner for years to come. Ready to step into a brighter future? Contact us today for your free quote.

Resources and Additional Reading:

Joshua Hudson
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