In 2024, the conversation around installing solar energy in Arizona has continued to evolve. Homeowners and businesses are increasingly considering solar power not just as an eco-friendly option, but also as a financially viable investment. The key question on many minds is: Are solar panels worth it in 2024? Let's dive into the factors that influence this decision.
Decreasing Cost of Solar Installation
When it comes to talking about whether solar panels are worth it in Arizona, what homeowners really want to know is whether solar panels are worth the cost. Over the past decade, the cost of solar panels has seen a remarkable decrease. Technological advancements, manufacturing advancements, improved solar panel efficiency, and increased market competition have driven down the prices of solar panels and installations, making solar energy more accessible to a broader range of consumers.
With the continuous improvement in solar panel efficiency and durability, consumers are getting more value for their investment and a shorter payback period, making solar installations a more accessible home improvement.
Solar Tax Credits: A Financial Incentive
The solar tax credit, officially known as the Investment Tax Credit (ITC), has played a pivotal role in promoting solar energy in the United States. In 2024, the solar tax credit is at an all-time high of 30%, offering significant savings on the initial investment in solar energy systems.
This tax credit directly reduces the amount of tax you owe by a total of 30% of solar panel and installation costs.
For instance, if your solar installation costs $20,000, the tax credit could reduce your tax bill by $6,000. If your total federal tax liability is less than the tax credit allowed, you can roll over the remainder for use on the next year's taxes. In this scenario, if you pay less than $3,000 in taxes per year, solar installation would allow you to pay $0 in federal taxes for two years!
*DISCLAIMER: ALWAYS consult your tax professional for specific tax advice and direction. We do not assume any tax responsibility.
Rising Electricity Costs and Grid Reliability
Electricity prices have been on an upward trajectory, influenced by various factors including the cost of fossil fuels, infrastructure maintenance, and the transition to more sustainable energy sources. This increase in utility bills is a crucial consideration for anyone contemplating solar energy.
Another aspect to consider is the reliability of the electricity grid in Arizona. With aging infrastructure and increasing demand, power outages and inconsistencies in supply are becoming more frequent. Solar battery storage systems offer a degree of independence from these grid-related issues, ensuring a more reliable power supply and off-grid operation.
Battery Storage also Qualifies for Tax Credits
The integration of battery storage systems has revolutionized solar energy use. By storing excess energy produced during sunny periods, solar batteries ensure a continuous power supply, even when the sun isn't shining. They also provide a solution for managing peak demand charges and increasing self-consumption of solar energy.
Solar battery storage systems also qualify for the 30% tax credit with no limit, further increasing the tax savings available to solar homeowners.
Long-Term Savings from Solar
Over the lifespan of a solar system, which can be 25 years or more, the savings on electricity bills can be substantial. Additionally, solar systems can increase property values, offering a potential financial benefit if you decide to sell your property.
Get a Free Solar Estimate in 2024 with Energy Solution Providers
Going solar in 2024 is not just an environmentally conscious decision, but also a financially prudent one. With decreasing costs, substantial tax credits, rising electricity prices, and concerns over grid reliability, the financial benefits of solar energy are more compelling than ever. As with any significant investment, it's essential to conduct a thorough analysis specific to your circumstances, but for many, the financial case for going solar this year is strong.
The easiest way to get started and find the answer for your home, is with a free solar estimate from the solar installation team here at Energy Solution Providers. We can size your solar or solar battery storage system to meet your energy needs present and future, and design your system to get the maximum amount of sunshine possible. We are a local team of solar experts with the experience to guarantee top-notch solar installation throughout Phoenix, Tucson, and the surrounding areas.