Solar energy in Arizona may help lower your electric bills
Solar energy gives you immediate savings by way of lower electricity costs. Arizona residents paid 12.1¢/kWh for electricity service in February of 2021.
This chart illustrates how much money you can save with solar panels. To calculate the average initial investment, take the cost of your solar system, then multiply it by .26 (which is the solar tax credit) if you have no other tax liabilities.
Next, subtract the state incentive of $1,000. It gives you your average initial investment. Therefore, if your system costs $15,000, after incentives, your investment is $10,100.
Now, you want to calculate your savings with solar panels. Take a six-month average of what your electric bills were before your solar panels and a six-month average after solar panels. It is ideal to account for some summer months.
After calculating your averages, say you save $100 per month in electric costs. Now divide your initial investment by your annual savings ($1200) to give you how many years until your return on investment.
Once you have saved more than your initial investment, this chart shows you how your savings balloon the longer you use them. Please note, that this chart is an example based on the predicted totals above. Your actual cost and savings may differ.