Solar Power in Phoenix: What Homeowners Need to Know in 2025

Are you considering solar energy for your home in Phoenix? Now is the perfect time to harness the power of the sun and take advantage of significant savings through federal and state tax credits. Our team at Phoenix Valley Solar can help you navigate these incentives and maximize your savings. You can also use our Arizona Solar Calculator to get an estimate of your potential benefits.

Phoenix homeowners are uniquely positioned to benefit from solar energy, thanks to the city's abundant sunshine and supportive initiatives. Here's an overview of the current solar landscape in Phoenix and how you can take advantage of it.

Solar Growth and Opportunities

Arizona continues to be a leader in solar energy, with significant growth in installations and capacity. The state has added over 4,700 MW of new energy-generating capacity, with approximately 82% coming from solar energy and battery storage (azcc.gov). This expansion reflects the increasing demand and investment in renewable energy sources.

For homeowners, the average cost to install a solar energy system in Arizona is around $27,217 before incentives and rebates. After applying available incentives, this cost can drop to approximately $19,052 (nerdwallet.com). These figures highlight the affordability and potential savings associated with solar installations.

Incentives and Savings

Homeowners can take advantage of several incentives to reduce the cost of solar installations:

• Federal Solar Investment Tax Credit (ITC): Offers a 30% tax credit on the cost of solar systems, including battery storage, with no upper limit (southfacesolar.com).

• Arizona Residential Solar Energy Tax Credit: Provides a 25% credit of the system cost, up to $1,000, on state income taxes (solartechonline.com).

• Sales and Property Tax Exemptions: Solar equipment is exempt from sales tax, and the added home value from solar installations is not subject to additional property taxes (solartechonline.com).

These incentives make an Arizona solar install more accessible and financially beneficial for homeowners.

Navigating Utility Policies

While solar energy offers numerous benefits, it's essential to understand utility policies that may impact your savings:

• Net Billing: Most Arizona utilities have shifted from net metering to net billing, where homeowners receive credits for excess solar energy at rates lower than the retail price (sunvalleysolar.com).

• Grid Access Charges: Utilities like APS have implemented monthly fees for rooftop solar customers, ranging from $2 to $3, with potential increases in future rate cases (pv-magazine-usa.com).

Understanding these policies is crucial when considering an Arizona solar install to ensure you maximize your investment.

Community Programs and Resources

Phoenix has initiated programs to make solar energy more accessible:

• Phoenix Solar Energy Assistance Program: In partnership with Solar United Neighbors, this program provided free solar installations to income-qualified families, resulting in significant energy cost reductions (solarunitedneighbors.org).

• Educational Workshops: Organizations offer classes like "Buying Solar 101" to help homeowners understand the process of going solar, including finding reputable installers and understanding warranties and tax credits (abc15.com).

These resources support homeowners in making informed decisions about solar energy.

Enhancing Energy Independence

With the shift to net billing, storing solar energy becomes increasingly valuable. Battery storage systems allow homeowners to use their solar energy during peak hours or outages, enhancing energy independence and maximizing savings (sunvalleysolar.com).

Conclusion

For Phoenix homeowners, 2025 presents a promising opportunity to invest in solar energy. With favorable incentives, community support, and a growing infrastructure, an Arizona solar install can lead to substantial savings and contribute to a sustainable future.

Are you considering solar energy for your home in Phoenix? Now is the perfect time to harness the power of the sun and take advantage of significant savings through federal and state tax credits. Our team at Phoenix Valley Solar can help you navigate these incentives and maximize your savings. You can also use our Arizona Solar Calculator to get an estimate of your potential benefits.