Panels for Arizona Part I

The average cost for power in Phoenix is about $120 a month. Since this is probably an average house in the area, let’s use this number for their monthly electric bill. When we go to the HahaSmart price checker tool and we enter the address and the monthly average bill, the price checker gives us a lot of useful information about getting a solar system installed. 

It recommends a 5.5 kW system for the home. Most solar installers will tell you a southern facing roof is the best for solar panels, and luckily this home has a great unobstructed southern facing rooftop so there are no issues. Solar panels can soak up the sun’s rays facing different directions, but the optimum is a southern facing roof. The power in Phoenix is a little more expensive than in most of the country, so the payback of the solar panels is pretty fast, saying the system would pay for itself within six years. 
 

About the costs

As we stated earlier, the HahaSmart Price Checker Took recommends a 5.5 kW solar panel system and it breaks down the cost and the permits needed. You can’t just slap a solar system together, you first need the approval of the design and a permit to build the residential solar system. That engineering and permitting process costs $798. If you add together the cost of all the equipment, meaning the solar panels, the power inverters, the racking, the material needed to mount the panels, and other miscellaneous items, the total comes to about $7,178. The sales tax in Phoenix is 8.6 percent which is a lot better than in some states. If you add the sales tax of about $617 it brings the total to about $7,795 in equipment and permitting.

It is important to note this cost does not include the electrical main service panel upgrade, and expenses or interest if you choose to finance your solar system. At HahaSmart we asked almost 2300 solar installers and the price checker tool compiles their data and it states the average installation cost is from $5,225 to $6,765 for the solar panels. If we average the two numbers we get $5,995 as an average installation cost.  Installation costs can vary and we recommend you compare two to three different installers quotes for your needs. At hahaSmart, we work with verified installers all over the country. When you talk to multiple installers please note, local installers are certified because they are local companies that care about their work. Many times they are also less expensive than national chains. An installation package includes an application for a solar installation permit from the local building safety department. A plan and layout of the overall installation, a guarantee from the installation company the project will be done right, and then a permit to operate the solar system. 

Bottom line and credit applied

Now to get the grand total for the project, we add the product cost of $7,795 and the installation cost of  $5,995, and we get $13,790 before local, state, and federal tax incentive programs. That means before any other savings are explored, the cost per watt for this system is $2.51 per Watt.

Programs differ in every state, but we know everyone is able to take 30 percent of the total installation cost and deduct it in their income taxes If we factor in the tax credit, from the system, the homeowner is allowed to write off $4,137. If we subtract this from the overall cost, it drops the cost down to $9,653. For more info, click here.
 

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