Rising electricity costs have recently become a pain in the neck for Phoenix residents. Now, residents spend an average of 11.96¢/kWh, which is higher than the state average. Although the cost might not seem like much every month, the annual spending will make the jaw drop. Therefore, why keep spending a fortune on energy needs when they can offset electricity bills with a solar panel system?
Now, they stand to save a lot of money with a solar system, especially given the high intensity and amount of sunlight hours in Phoenix, AZ. However, before installing a solar panel system, here are a few interesting facts to remember.
Earn Money
The primary objective of installing a solar panel system is to cut electricity costs and save money
The primary objective of installing a solar panel system is to cut electricity costs and save money. In fact, they are likely to receive a $0 bill if the solar system meets all the electricity needs. The cost saving is a reprieve, especially in summer when electricity bills increase because of air conditioning.
However, did they know them can also earn money through a solar system? They heard right. Phoenix provides plenty of sunshine with vast, open skies on most days, making it ideal for solar power.
Therefore, they can sell surplus energy back to the state under Arizona’s net billing program. As a result, they can earn money without lifting a finger.
Save More Money through Time-of-Use Rates
Generally, they can save money on the electricity bills by installing solar panels. However, such savings are not as straightforward as most people think, especially if they rely on a solar panel and the grid system for the electricity needs. Therefore, they must be strategic when using both options. Understanding the time-of-use electricity rates model is crucial if they want to save a lot of money with a solar panel system.
Under the model, homeowners pay more when the cost of generation and demand is high
Under the model, homeowners pay more when the cost of generation and demand is high and vice-versa. For example, electricity consumption costs more on a hot summer afternoon than in the middle of the night.
Running appliances using power from a solar panel system during the hours when on-grid electricity rates are high will save them a lot of money.
Qualify for Federal Tax Credit on Solar Batteries
Most homeowners are unaware that solar batteries qualify for a federal tax credit. They may think that they can install solar panels and ignore the battery. While they do not need a battery to use a solar panel system, the advantages of backing up solar energy are worth considering.
One of the most significant advantages is that they can qualify for a 26% federal tax credit on a solar battery if they pair the cell with an existing solar panel system.
However, a federal tax credit applies to solar batteries if the devices are charged from a solar panel and not the power grid. They must install a battery within a year of a solar panel installation to qualify for the federal tax credit.
Choose from Grid-Tied or Off-Grid System
The option allows them to choose what best suits their solar power needs
When they look at the huge solar panel systems on private properties, they might think they are all off-grid systems. However, residential solar panels can also be connected to a regional power grid system. The option allows them to choose what best suits their solar power needs.
One significant difference between an on-grid and an off-grid system is that the former stores energy in the grid while the latter requires a battery. The best thing to do is to engage a service provider for recommendations on the most suitable solar power system.
Charge Electric Vehicles
The fact that they can charge an electric vehicle (EV) using solar energy flies under the radar despite the growing popularity of EVs amongst homeowners, which is surprising.
Charging an EV using power from the grid system is expensive, increasing peak demand. By charging the EV from their own stored solar-generated electricity, they circumvent this expense.
Solar energy is here to stay; therefore, waiting longer than necessary to install a solar panel system means messing out on significant savings. Get started with the free solar consultation.
