If you are considering adding a solar system to your home, now is a good time!
Sun Valley Solar Solutions, a Rosie on the House Certified Partner, says understanding the optimal time for solar panel installation is crucial as the solar landscape continues to evolve. Installing solar panels in the spring, particularly Spring 2024, is important for several reasons:
Energy Rate Hikes
Energy rates are going up. Many factors outside Arizona, such as conflicts abroad and the Texas freeze of 2021, are contributing to the increase. With approval from the Arizona Corporation Commission, Arizona’s three largest energy suppliers, Arizona Public Service (APS), Salt River Project (SRP), and Tucson Electric Power (TEP) are passing those costs on to customers.
According to APS’s website, “…residential monthly bill would increase 11.3% on average. New rates would not take effect until December 1, 2023, at the earliest. For an average residential customer using 1,050 kWh, that’s about $15 a month or roughly 50 cents per day – though the impact will vary based on individual energy use and service plan.”
ABC 15 reported that SRP customers saw a 4.7% rate increase in November 2022, equating to an average $5.58 monthly increase. Another 4.7% rate increase was approved for November 2023. In March 2023, another increase approval raised the increase another 0.2%, for a total up to 9.6%.
Tucson Electric Power’s (TEP) new rates took effect September 1, 2023, and are expected to increase the average monthly bills of residential customers with typical usage on TEP’s Basic Pricing plan by about $11.
Be Prepared for Peak Solar Production
Spring installation means your solar system will be fully operational by summer, the best season for solar energy production. This allows you to maximize energy generation during the longer, sunnier spring and summer days, ensuring you accumulate excess energy credits before the high-demand summer months.
Benefit from Solar Tax Incentives
The earlier you install your solar system, the sooner you can take advantage of solar incentives. While incentives are still available, installing your system in spring ensures you’re set to benefit from them, which includes the federal solar tax credit extended until 2035.
The Inflation Reduction Act 2022 extended a 30% solar tax credit, making solar installations more affordable. Additionally, this tax credit applies to home batteries, enhancing the financial appeal of going solar.
Other reasons to consider solar
According to the Solar Energy Industries Association, “prices of solar equipment have fallen 4% over the last five years.”
The Arizona Corporation Commission approved the renewable energy standard and tariff in 2006. The goal is to ensure regulated electric utilities generate 15% of their energy from renewable resources by 2025.
Installing solar panels in the spring can significantly increase your property’s value, making it an attractive option for potential buyers who want to be in their new home before school starts or simply enhance your investment in your home.
Ideal Solar Installation Conditions
Without winter weather constraints, spring provides optimal conditions for solar panel installation. This timing avoids the challenges of winter rains or extreme summer heat, making the installation process smoother and more efficient.
Energy Security
Not only can you harness energy from the sun, but you can also save it for later.
Batteries can be integrated into a new solar purchase or installed into existing systems. They also offset expensive summer peak hours. Amid the APS and SRP rate hikes, ensuring reliable and affordable electricity is critical, especially in areas with extreme temperatures. Solar energy and home battery systems like the Tesla Powerwall offer a sustainable and dependable alternative.
As of March 2024, APS solar customers can sell their power back to the grid at $.076 per kWh the year following installation. The Arizona Corporation Commission allows APS to reduce that buyback rate by 10% per year by the Value of Solar decision.
Third-Party Ownership (TPO)
Third-party financing can lower the cost of solar installation and maintenance of a system. It has emerged in the solar industry as one of the most popular methods of solar financing for consumers to realize the benefits of solar energy. TPOs saw a 600% increase in 2023, with expected growth in 2024.
There are two primary models:
- Lease | Under a lease, the solar provider installs and owns the system, and the customer makes monthly payments to the solar provider.
- Power Purchase Agreement (PPA) | For PPAs, the customer pays an agreed-upon rate for the electricity generated by the system.
In both models, the solar company installs the system on the customer’s property, often without upfront costs, and is responsible for the system’s upkeep. At the end of a PPA or lease term, the customer may be able to extend the term or purchase the system.
Key TPO Benefits
- No need for an outright purchase.
- Immediate tax benefits.
- Lower credit requirements.
- Instant savings.
- Easy transferability to new homeowners.
- Fast access and approval process – “Go solar today.”
Brand Recognition and Reliability
Make sure the company you hire is licensed, specializes in solar and has a long history of outstanding service. Over the past decade, many solar companies have come and gone. We have also seen many companies add solar to their services. Sometimes these companies have little to no experience with solar and sub out the work. Some companies may have a contractor’s license from the ROC but are NOT licensed for solar. Check the license of potential contractors.
Sun Valley Solar Solutions, for instance, has been serving Arizona since 2006 and has a vast service department and has vast experience fixing issues caused by other companies.
Take extreme caution before signing up for a solar package from an unsolicited door-to-door salesperson. There are a few reputable door -to -door solar sales teams. However, most of the complaints about the solar industry begin with door -to-door sales. Often, these type of salesmen are just solar brokers. They submit their estimate to solar contractors and accept the cheapest bid, pocketing the difference. There is never an excuse for a salesman to be aggressive or manipulative and you are never obligated to answer the door to a salesperson.
Tip: If you think they are the real deal. Make an appointment for them to come back and do your homework in the meantime!
Install Solar Now
Installing solar panels now offers numerous benefits, from maximizing energy production and financial incentives to improving home value and enjoying favorable installation conditions. Plus, you can lock in your utility rates before they increase again.
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CONTENT PARTNER | Sun Valley Solar Solutions
Since 2006, Sun Valley Solar Solutions has harnessed Arizona’s sunshine into power for our community. Then, we merged with PE Solar, combining our love for technology and a sustainable future to bring you top-notch solar solutions. We’re all about empowering your home with clean, reliable energy while keeping you in the loop every step of the way.
PODCAST
Considering solar? Rosie Certified Sun Valley Solar Solutions discusses why spring is the right time to look into it. There are many changes worth noting in understanding how solar panels and battery integration actually works for you and your energy bill. We are an advocate of solar. Not the shady sales tactics within the industry.
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Comments (2)
Gerard McSweeney
March 14, 2024 at 4:10 pmDo the electric providers allow “banking” of power in the winter where you may use less than you produce and apply those “credits” to the higher summer bills?
Jenifer Gura
March 20, 2024 at 4:34 pmHello Gerard, thank you for your comment. In case you missed it, we answered your question on-air this past Saturday! You can listen to that clip here. You can also listen to that full hour and get more solar information here.