With an abundance of sunlight in Arizona it’s hard not to question if solar panels are worth the investment for your home or business. When it comes to investing in solar, former Governor Janet Napoltano explained it best when she said, “The state could be the Persian Gulf of solar energy.” Arizona has many state-sponsored tax credits and equipment exemptions that have helped so many businesses and homeowners save with solar.
Tucson is located close to the border of Mexico and is home to over 500,000 people since 2019. The city sees about 3,800 hours of sunshine a year. Now that’s a lot of sun! This makes Tucson an ideal place to invest in solar panels and harvest solar energy. As a local solar company in Tucson, our team at Sunlogix Energy saw this as an opportunity to help educate more Arizonian residents to understand the advantages of solar and help them achieve the best solar experience possible.
To better understand if solar panels are worth it in Tucson your next question is most likely, What are your solar investment options and what would your return on investment (ROI) be?
Tucson Solar Investment and Return on Investment (ROI)
The cost of solar for everyone can vary depending on different factors such as the size of your home and the size of the solar energy system that you need to power your property. Currently, as of 2021 the average solar panel cost in Tucson, Arizona is $2.54/W. If for example the solar panel system size is 5 kilowatts (kw), then the average solar installation in Tucson, AZ can range anywhere from $10,795 to $14,605 in addition to the average gross price for solar in Tucson equaling to about $12,700. This total is concluded with the 26% Federal Investment Tax Credit (ITC) and other state or local incentives.
This is just one of many examples of the cost of solar in Tucson, Arizona. Here we’ll break down the different options available to make an investment into solar.
Buying Solar Panels Outright – Cash
Buying your solar electric system outright is usually the best option. It can typically cost $15,000 to $20,000 after tax credits and can reduce your electricity bill by 70 – 100%, depending on the orientation and size of your roof and by local regulations. Most solar panel systems pay for themselves in 5-7 years.
Home Equity Loan
If you choose the option to finance your solar panels, one of the best ways to do this is through a home equity loan or a home equity line of credit. Since your house can serve as collateral, these interest rate options are usually the lowest and the interest you pay is tax deductible. Equity loans can range from 5 to 20 years and have a fixed interest rate. While on the other hand equity lines last 10 years and can have a variable rate meaning the interest can fluctuate and increase.
There are different solar loans you can choose from which include secured solar loans and unsecured solar loans. With an unsecured loan, you house is not collateral and the interest isn’t tax deductible. Solar installers can work with different lenders that offer solar loans to get you the best solar loan.
An important take away from learning about the different solar terms and solar financing options is that everyone’s choices can be different based on finances, the size of their home, and their needs. Luckily, our team at Sunlogix can do everything from getting you the best solar financing and leasing options to having our solar installers that work in house install your solar panel system. Our solar installers have decades of experience installing solar panels and we only work with the best installers in the industry. Most importantly, we dont contract other companies to get your solar panels installed. We do everything in house!
If you’re living in the Tucson, Arizona area and you’re looking for the “best solar companies near me” you can find our solar company located on 1870 W Prince Rd, Ste 53 Tucson, AZ 85705. Being headquartered in Tucson, Arizona gives us the advantage and understanding of the area when it comes to the community and environment. We offer home solar installation, commercial solar installation, solar service and maintenance, solar battery installment, and solar financing. So when you’re thinking about which solar company to choose from, give us a call at (520) 235 – 6099 to get your free solar estimate today!