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Few states receive more year-round sunlight than Arizona. The state is ranked fifth in solar investment according to the Solar Energy Industries Association and offers several solar incentives to help you save money when switching to renewable energy. We researched the best solar companies in the country, comparing them on product performance, warranty coverage, customer service, and more. See which of these companies made our top five solar companies available in Arizona below.
Key Takeaways
Compare Top Solar Companies in Arizona
Arizona’s Top Solar Energy Companies:
Our Top Solar Company Picks for Arizona
Momentum
Best Installation Process
Elevation
Best Energy-Efficient Upgrades
Note: In July 2024, SunPower notified dealers it would be halting all new shipments and project installations. The company also noted it would “no longer be supporting new Leases and PPA sales nor new project installations of these financing options.
What Solar Incentives Are Available in Arizona?
Arizona residents can save money going solar by taking advantage of the state’s solar incentives. Some of the most beneficial solar incentives in Arizona include:
- Federal solar tax credit: The federal tax credit lets you deduct 30% of your total solar expense from what you owe on your federal income taxes for the tax season after installation.
- Net metering: Most solar owners in Arizona qualify for their utility company’s net metering program. This is similar to a net-metering program, allowing you to generate credits on your utility bill for unused electricity your solar system generates.
- Property and sales tax exemptions: Arizona waives sales tax on solar equipment, so that’s one way to lessen expenses. The state also doesn’t charge you any additional property tax if your home value increases due to installing solar panels.
- Residential Arizona solar tax credit: The Arizona state tax credit reimburses you 25% of the cost of your solar panels, up to $1,000, on your personal income tax for the year you install the system.
What Are the Most Popular Solar Incentives?
We surveyed 1,000 recent solar buyers in early 2024 and learned that 64% used the federal solar tax credit, 32% enrolled in a net metering program, and 30% took advantage of a local rebate program.
What Should You Look For in a Solar Company?
You may be tempted to choose a solar panel company primarily based on price, but there are several factors you should consider to get the most out of your investment and experience with the provider. Take a look at the following to see how companies’ offerings differ.
First, look to see if the company handles panel installation in-house or via a third party. We suggest choosing a company that has its own in-house team because this can improve your customer service experience and simplify warranty coverage.
You should also look to see if the company sells and installs more than just panels. Some providers also have solar batteries, inverters, electric vehicle charges, and more. You may be able to get a bundle discount in this case.
Lastly, check if the company offers any remote monitoring to help you track your system’s performance. Some companies do this in-house, while others have a mobile app that allows you to keep track on your phone.
Solar warranty types include:
- Manufacturer’s warranty (or product warranty): This protects the solar panel system’s components in case of defects.
- Workmanship warranty: Also known as a labor warranty, this covers installation in case of poor workmanship or faulty installation materials.
- Performance (or power production) guarantee: This guarantees the system’s output functions as outlined in your contract.
We recommend working with a company that offers at least a 10-year labor warranty and a 20-year manufacturer’s warranty and performance guarantee. A provider offering 25-year coverage is best.
Solar companies provide some combination of these financing options:
- Full purchase: Fully purchasing your system gives you immediate ownership and qualifies you for all incentives.
- Solar loan: A solar loan allows you to make monthly payments on your system and still makes you its owner.
- Solar lease: You’ll make set monthly payments with a lease, but you won’t be able to own the system, disqualifying you from most solar incentives.
- Power purchase agreement (PPA): A PPA allows you to make monthly payments with no money down, but you don’t own the system.
Solar leases and PPAs are tempting to save money up-front, but they disqualify you from some solar incentives that could help lower your overall solar panel cost. We recommend purchasing your system in full or through a solar loan so you don’t miss out on valuable tax credits and rebates.
Check a company’s website to see how many contact points it provides and what its support hours are. We recommend going with a company that’s reachable multiple ways and has at least some evening and weekend availability. Call or write the company a couple of times to see how responsive and helpful it is.
Ideally, a company will offer at least a couple of these contact points:
- Mobile app
- Online chat
- Online portal
- Phone
- Website service request form
Which Solar Panel Installation Company Should You Choose in Arizona?
We have picked Momentum Solar as a top choice for Arizona homeowners because of its focus on high-quality solar panels along with strong customer service. However, we recommend requesting and reviewing quotes from at least three different solar companies before making a final decision.
You should also take a close look at your monthly electricity bill and compare it against your state’s average cost of power. If you have consistently high payments or the cost of electricity is more expensive than in other areas, solar panels may be a good solution. If you have relatively low bills or can find ways to cut down electricity usage significantly, you may not see enough cost savings to justify the expense of installing a home solar system. We recommend getting at least three quotes to determine the best rates for your home.
Other Arizona Home Service Resources
Frequently Asked Questions About Solar Companies in AZ
Is solar really worth it in Arizona?
Solar is worth it in Arizona due to the state’s high annual sunlight exposure and incentives. As of 2020, Arizona currently ranks fifth in the country in terms of total installed solar capacity at 4,765.73 MW.
Additionally, several utility companies in Arizona offer rebates for solar purchases. The combination of Arizona’s solar sales tax exemption, removal of property tax for solar added home value, and the Federal Solar Tax Incentive help to make solar worth it in Arizona, with a payback period of 11.5 years.
In addition to helping the environment by reducing greenhouse emissions, solar panels allow you to keep more money in your bank account each month. You save by using less electricity, a saving that kicks into high gear once you’ve cut enough in electricity bills to recoup the installation cost. You’re also likely to make more money when you sell your home.
What solar incentives are available in Arizona?
Arizona has two tax exemptions for going solar—the solar sales tax exemption and the property tax exemption. The first exempts sales tax from being applied to renewable energy credits. The second ensures your property taxes will not increase following the installation of a solar system on your home.
Does Arizona have a net metering law?
Arizona has a law similar to net metering called net billing. Arizona replaced their net metering law back in 2016 with net billing, otherwise known as a feed-in tariff. What this means is that you, as a customer, will be credited for any excess energy exported to the grid.
The difference between net metering and net billing is that the credits the utility company offers do not have to equal the retail rate of energy. While this leaves the rate up to your electric company, it still means credit back to you for any unused energy your home produces.
How much does a solar system cost in Arizona?
The cost of a solar panel system in Arizona is based on a few key factors such as your home energy consumption, exposure to sunshine, installation, and available solar incentives. The number of factors involved makes it difficult to give a one-size-fits-all price for a solar panel system that will fit every homeowner’s goals.
Most solar companies offer a free solar estimate that is based on your personal saving goals and budget. We’ll take into account every unique aspect of your situation, explain how you can take advantage of solar incentives, and even answer any questions you may have.
How long do solar panels last in Arizona?
Solar panel makers generally give guarantees of between 25 to 30 years. Amazingly, high-quality solar panels can continue working for years after the warranty expires, so up to 50 years of reasonable production is not uncommon.
Our Rating Methodology
We are committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:
- Solar equipment, installation, and services (25%)
- Warranty and performance guarantees (25%)
- Brand reputation and certifications (15%)
- Financing options (15%)
- Experience (10%)
- Availability (10%)
Total scores are divided by 20 for a final 5-point rating scale.
To share feedback or ask a question about this article, send a note to our Reviews team at reviews@thisoldhousereviews.com.
