Joy Seitz

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Interested in pursuing solar energy to power your home and lifestyle? You’re not alone. According to 2024 data from the Solar Energy Industries Association, Arizona ranks fifth in the nation for total installed solar capacity, and has enough solar installed to power more than 1.4 million homes.

Because Phoenix experiences an estimated 300 sunny days per year, solar is a thriving energy source here.

Before making the jump to utilizing this renewable resource at home, I recommend vetting your solar company and asking the following four questions to gain a deeper understanding of exactly how you stand to benefit from solar.

1. What solar incentives are available?

The two types of solar incentives available are the Federal Tax Credit and Arizona Solar Tax Credit. The federal credit allows you to claim 30% of the cost of your solar energy system, averaging $7,000 savings on your taxes, and the Arizona incentive allows you to claim up to a maximum of $1,000 tax credit. Customers will not pay any Arizona sales tax.

It is important to ask about these incentives to get a better understanding of how you stand to benefit from your pursuit of solar energy — there are tax benefits you might be leaving on the table without even realizing. We also recommend that you speak to a tax professional if you have specific questions.

2. Does your company sell or lease solar panels to clients?

Understanding your ownership (or lack thereof) is critical to ensure there are no hidden fees or financial obligations to your solar installer or financing company. I believe purchasing is a better value for homeowners.

Some solar leases have escalator clauses that increase the amount you pay per kilowatt-hour over time. A solar lease typically lasts for about 20 years with the option of purchasing at the end of the term, and homeowners are not eligible for the 30% Federal Tax Credit or the Arizona Solar Tax Credit.

Solar leases also can make it harder to sell a home as the new homeowner is required to qualify for the lease.

3. What do your warranties cover?

There are two different warranties, labor and manufacturer. It is important to ask this question to gain greater understanding of your coverage, should your solar panels or inverter fail before the warranty expires. We offer a two-year warranty on any labor/installation issues that may arise. Product/manufacturer warranties typically range from 10 to 25 years and cover the solar panels and inverters. If a solar panel or inverter malfunctions due to manufacturing defects, the manufacturer should replace or repair it.

Warranties can vary drastically, so it’s important to confirm that the warranty will cover parts and labor. Consumers also should seek solar installers whose warranties include performance guarantees.

4. How much will my electric bills be after going solar?

Beyond being a green, renewable energy, solar will reduce your utility bill if the system is designed and installed correctly. The savings should begin the day the solar system is turned on.

Your solar salesperson should be employed by the solar installer to confirm the system they are selling you will in fact meet your savings goals. The salesperson must understand what your utility bills currently are and whether you plan to increase your utility usage by investing in an electric vehicle or installing a hot tub. The more questions the salesperson asks you about how your home consumes energy, the more likely you will be to have a lower utility bill.

The typical return on investment for solar is eight years.

Editor’s note: Joy Seitz is CEO and owner of Phoenix-based American Solar & Roofing. Please send your comments to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.