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As an expert solar advisor, the first thing we do is plug the monthly kilowatt hours (kWh) from your utility bill into our software to determine how much energy your home requires based on your last 12 months of energy usage. The program then tells us your average monthly payments going to your utility company and how many solar panels are required to power your home.

So the exact cost of a solar panel system for your home would depend on these specific details. Without this information, we cannot determine the sizing and pricing of your home solar system.

Solar panels are an investment that can save you money on your energy bills in the long run, but they do come with an initial cost.

The cost of solar panels varies depending on several factors, such as the size and energy needs of your home, the type of panels you choose, and the location of the installation.

Also, you need to determine answers to other important questions like,

“Am I going to purchase or lease my solar system?”

And “Will I qualify for the 30% federal tax credit or any applicable state tax credits?

NOTE: There is a lot of misinformation floating around about residential Solar including misinformation about solar panel tax credits. If you find yourself sitting down at your kitchen table with a 20-something who seems to know what they are talking about, he may be trained to bring up selling points like the federal tax credits without fully understanding the unique qualification guidelines.

The federal solar tax credit, also known as the Investment Tax Credit (ITC), is available to any individual or entity that installs a solar energy system on their property for use in their trade or business or for generating electricity for their own use. This includes both residential and commercial properties.

There are some restrictions on who may qualify for the ITC. For example, credit is not available to individuals or entities that install a solar energy system on property that they do not own. Additionally, the credit is not available to individuals or entities that install a solar energy system on property that is used primarily for personal use, such as a vacation home.

Also, there are limits on how much of the credit can be claimed based on the type of property. For residential properties, the credit is limited to the amount of tax liability for the year. For commercial properties, the credit is limited to 10% of the cost of the system.

It’s important to note that the ITC is a federal tax credit, and it is always a good idea to consult with a tax professional to determine the best way to take advantage of it. Also, there might be additional state or local incentives or credits available.

What is an SREC? (Solar Renewable Energy Credit)

SREC stands for Solar Renewable Energy Credit. These are state-specific incentives for homeowners to install renewable energy systems in their homes.

A solar system is just one example of such a system. In many states, SRECs are based on the specific amount of kWh your system produces.

For example, in the state of Massachusetts, under the SMART program, incentives are paid directly to the homeowner on a monthly basis in the form of a check or ACH wire transfer. Incentives range between $.045 and $.12 per kWh depending on the utility.

So for example, if you are a Mass homeowner and your system produces 800 kWh of electricity, and your rate is $.12 per kWh, you will receive a check from your utility company for $101.14. My sister and her family live in Nantucket, Massachusetts. One of her neighbors who transitioned their home to solar told her that they get roughly $400 per month back from their utility company as a result of these credits. Crazy right?

On average, the cost of a solar panel system in the United States ranges from $10,000 to $15,000 for a 5 kilowatt (kW) system. This cost includes the panels, installation, and all necessary equipment. However, the cost can be significantly lower if you choose to install a smaller system, or if you take advantage of government incentives, such as tax credits or rebates.

The type of solar panels you choose can also impact the cost. High-efficiency panels are typically more expensive, but they produce more electricity per panel, so you may need fewer panels to achieve the same output. The location of the installation also affects the cost, as labor and equipment costs can vary depending on local regulations and the accessibility of the site.

It’s important to keep in mind that solar panels have a long lifespan, typically 25-30 years, so the cost of the panels is spread out over a long period of time. Additionally, the energy savings from the panels can offset the initial cost, making solar panels a cost-effective investment in the long run.

Watch this video to see a real-world example of a home solar system in Hitchcock, Texas. You’ll see how I used the info from his electric bill to size the solar system, add the panels virtually to determine the best placement to maximize sun exposure, and then cut his energy costs by more than 50% by financing the system over 25 years.

Introducing: The definitive Guide to Residential Solar in the U.S. <==Click here to check it out on Amazon.com

A residential solar system is a great way to reduce your energy costs while doing something positive for your community and the planet. However, when a home solar system is not designed and sold with integrity, it can have a tremendous negative financial impact on the homeowner.

Throughout The Definitive Guide to Residential Solar in the U.S., you will discover the many ways that homeowners have been taken advantage of by smooth-talking solar sales reps. Only to find out, often many months or years after they signed an ironclad contract, that their home solar system is not producing anywhere close to the amount of energy that they were told it would. Many of these homeowners found themselves having to pay a monthly solar bill on top of an electric bill, that they were told would vanish after installing solar panels. This is the unfortunate reality for thousands of solar pioneers and it is the #1 reason that residential solar deserves the bad reputation it has in many markets across the U.S.

Introducing: The Definitive Guide to Residential Solar in the U.S. <==Click here to check it out on Amazon.com

A residential solar system is a great way to reduce your energy costs while doing something positive for your community and the planet. However, when a home solar system is not designed and sold with integrity, it can have a tremendous negative financial impact on the homeowner. Throughout The Definitive Guide to Residential Solar in the U.S., you will discover the many ways that homeowners have been taken advantage of by smooth-talking solar sales reps. Only to find out, often many months or years after they signed an ironclad contract, that their home solar system is not producing anywhere close to the amount of energy that they were told it would. Many of these homeowners found themselves having to pay a monthly solar bill on top of an electric bill, that they were told would vanish after installing solar panels. This is the unfortunate reality for thousands of solar pioneers and it is the #1 reason that residential solar deserves the bad reputation it has in many markets across the U.S.

 

You are about to discover everything you need to know to make an informed decision about solar, including warning signs that your solar sales rep may have no idea what they are talking about. This happens all the time in residential solar, and the individual homeowner is usually the one who gets burned big time.

 

Don’t get burned in solar – Get The Definitive Guide to Residential Solar in the U.S. – Maximize Your Solar Savings, Avoid Costly Mistakes, and Discover the Good, the Bad, and the Ugly Sides of Residential Solar.

 

I trust that this information provides you with the necessary insight to make an informed decision regarding solar energy in Arizona. If you need additional clarification or help, please don’t hesitate to contact us.