Solar Guide
Solar in Scottsdale
Considering solar installation in Scottsdale? You’re exploring one of the smartest energy decisions available to Valley residents. Arizona ranks 3rd for residential solar installations nationwide, and with electricity prices rising 22% from 2020 to 2024, solar panels for home use offer compelling long-term value.
Exploring solar installation options in Scottsdale means understanding how our desert climate, local regulations, and utility programs work together to maximize your investment.
Key Takeaways
- Scottsdale receives abundant sunshine year-round with excellent solar conditions, making it ideal for solar energy production and savings.
- Arizona offers multiple solar incentives including federal tax credits and state programs that can save homeowners over $8,000 on installation.
- Solar systems in Scottsdale typically pay for themselves in under 8 years while providing 25+ years of energy savings.
Solar Cost Calculator
Our solar cost calculator uses real installation data from Palmetto customers across Scottsdale neighborhoods like Paradise Valley, McCormick Ranch, and Kierland. Get accurate, local pricing estimates based on actual installations in your area.
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Scottsdale Electricity Prices
Understanding electricity costs helps Scottsdale residents make informed energy decisions for their homes and budgets.
Arizona electricity rates have climbed from 12.5 cents per kWh in 2021 to 14.9 cents in 2024, representing a 19% increase over three years.
Solar panels generate your own electricity, helping reduce dependence on the grid and providing protection against these continuing rate increases in Arizona.
Over 25 years, solar systems can provide predictable energy costs while utility rates continue rising, offering long-term financial stability for homeowners.
Price of Energy: Arizona vs National Average
Scottsdale Area Utility Providers
Scottsdale residents receive electricity from two main utilities: Arizona Public Service (APS) at 15.3¢ per kWh and Salt River Project (SRP) at 12.5¢ per kWh in 2023.
SRP rates fall below the national average of 16.0¢ and state average of 14.0¢, while APS exceeds both benchmarks due to infrastructure investments and service territory differences.
With electricity costs fluctuating annually, solar installation provides rate stability and predictable energy expenses, especially valuable for APS customers facing above-average utility rates in Scottsdale.
Scottsdale Utilities Electricity Rates
Arizona Solar Incentives
Scottsdale homeowners can significantly reduce solar installation costs through multiple solar incentives in Arizona at federal and state levels.
Arizona offers three key state incentives: a tax credit covering 25% of costs up to $1,000, property tax exemptions, and sales tax exemptions on equipment and installation.
These incentives change frequently, so research current programs thoroughly and consider acting promptly to maximize your potential savings.
$8,252
Average savings in Arizona solar rebates
| Incentive | Type | Description | Source |
|---|---|---|---|
| Residential Clean Energy Credit | Federal tax credit | A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed | Learn More |
| Credit for Solar Energy Devices | State tax credit | Arizona Homeowners receive the lesser of $1,000 or 25% off their solar panel installation. | Learn More |
| Property Tax Exemption | State tax exemption | No property tax increase from added solar value. Prevents higher assessment on solar equipment. | Learn More |
| Sales Tax Exemption | State tax exemption | No state or local sales tax on solar equipment and installation. Reduces upfront cost immediately. | Learn More |
The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.
The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.
Arizona’s Credit for Solar Energy Devices is a state tax credit that helps homeowners save money when they install solar panels on their Arizona residence. This nonrefundable tax credit reduces the amount of state income tax you owe, dollar-for-dollar, making solar installation more affordable for Arizona families.
To qualify for this credit, you must be an individual taxpayer who installs a solar energy device at your primary or secondary residence located in Arizona. The credit is nonrefundable, which means it can reduce your Arizona state tax liability to zero, but any unused credit amount cannot be refunded to you as cash. You’ll need to file Form 310 with your Arizona state tax return to claim this benefit.
While the official source doesn’t specify the exact credit amount or percentage, this incentive has been available for many years and continues to be offered to Arizona homeowners. The forms are updated annually, so make sure to use the correct year’s form when filing. This credit works alongside federal solar incentives and can significantly reduce the overall cost of your solar installation when combined with other available programs.
Arizona’s Property Tax Exemption for renewable energy equipment is a state tax benefit that protects homeowners from paying additional property taxes on their solar panel systems and other renewable energy equipment. When you install solar panels on your home, this exemption ensures that the added value from your solar system won’t increase your annual property tax bill, allowing you to keep more money in your pocket each year.
The exemption applies to the full value of qualifying renewable energy equipment, including solar panels, inverters, batteries, and installation costs. While the exact dollar savings depend on your local property tax rates and system value, this benefit typically saves homeowners hundreds to thousands of dollars annually throughout the life of their solar system. The exemption is available to residential property owners who install qualifying renewable energy systems, and you’ll need to file the appropriate property tax form (Form 82054REE) with your county assessor to claim this benefit. This exemption continues for as long as you own the renewable energy equipment, making it a valuable long-term financial advantage of going solar in Arizona.
Arizona’s Solar and Wind Sales Tax Exemption removes state sales tax from the purchase and installation of solar and wind energy systems for your home. This means you won’t pay the standard Arizona sales tax (which varies by location but is typically around 5-10%) on your solar panels, inverters, batteries, and other system components, as well as the contractor’s installation services.
This exemption applies automatically at the point of sale when you purchase qualifying solar or wind equipment and installation services from contractors in Arizona. There are no income limits, application deadlines, or special forms to fill out – the tax exemption is built into Arizona state law and applies to all residential solar and wind installations. The savings can add up to hundreds or even thousands of dollars depending on your system size and local tax rates, making this a valuable benefit that works alongside other solar incentives to reduce your overall investment costs.
Net Billing in Arizona is a compensation system where solar homeowners receive credits for excess electricity their panels send back to the grid. Unlike traditional net metering where you get full retail credit, net billing pays you a lower wholesale rate for your excess solar energy. The credit rates vary by utility company, ranging from about 3.5 cents to 6.9 cents per kilowatt-hour depending on your provider.
Most Arizona utilities lock you into your export credit rate for 10 years once you connect your solar system, providing rate stability. However, you’ll typically need to switch to a time-of-use rate plan and may face additional monthly fees like grid access charges or distributed generation fees. At the end of each year, if your accumulated credits exceed a certain threshold (usually $10-$25), the utility will either pay you out or reset your account to zero, depending on your specific utility’s policy.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Arizona incentives.
Get a Free QuoteScottsdale Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Scottsdale’s abundant sunshine and high elevation create excellent solar conditions year-round, though summer heat slightly reduces panel efficiency. Most locations produce great solar energy.
Solar Production in Scottsdale by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Installations in Scottsdale
We’ve mapped every solar installation across America to show you something exciting: your Scottsdale neighbors are embracing clean energy! Explore this interactive map to discover which communities have made the switch to solar.
Leasing Solar Panels
Scottsdale homeowners have access to solar leasing options through all major utility providers in the area. Both Arizona Public Service (APS) and Salt River Project (SRP) customers can take advantage of Palmetto’s solar lease program, which offers predictable monthly payments without the upfront investment costs of purchasing a system.
With a solar lease, you pay a fixed monthly amount (typically $100-200) based on your system’s estimated production, while Palmetto handles all maintenance, monitoring, and repairs. This differs from purchasing solar panels outright, where you’re responsible for system upkeep and must pay the full cost upfront, even after federal tax credits.
Our LightReach program makes solar accessible immediately – you start saving on electricity costs from day one without worrying about equipment failures, weather damage, or performance issues that homeowners face when they own their systems.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes excellent sense in Scottsdale. The city receives abundant sunshine year-round with high solar irradiance levels, making it ideal for solar energy production and significant long-term savings.
With Arizona electricity rates rising 19% since 2021 and multiple state incentives available, Scottsdale homeowners typically see payback periods under 8 years while enjoying 25+ years of energy savings averaging $65,000 over the system’s lifetime.
Scottsdale doesn’t have traditional net metering but offers net billing through APS and Salt River Project (SRP). Both utilities credit excess solar energy at wholesale rates rather than full retail rates.
APS pays $0.06857/kWh for exports with 10-year rate locks, while SRP offers seasonal rates of $0.02-$0.06/kWh depending on your time-of-use plan. Both programs still provide valuable compensation for your solar production.
Yes, solar panels typically increase home value in Scottsdale, AZ. A Zillow study shows solar panels increase home value by 4.1% on average across the United States.
In Scottsdale’s competitive real estate market, solar installations are particularly attractive to buyers seeking energy-efficient homes with lower utility costs. Arizona’s property tax exemption ensures the added solar value won’t increase your property taxes, making it a smart investment for homeowners.
Solar installation costs in Scottsdale typically range from $12,121 to $20,759 after federal tax credits and state incentives, depending on your home size and energy needs.
A typical medium-sized home (2,000-3,000 sq ft) requires an 8.5 kW system costing around $15,921 final price. This includes the 30% federal tax credit ($7,252 savings) plus Arizona’s $1,000 state credit and sales tax exemptions.
Solar is financially worth it for most Scottsdale homeowners. With Arizona’s abundant sunshine and rising electricity rates (up 19% since 2021), solar systems typically pay for themselves in under 8 years while providing 25+ years of savings.
After federal tax credits and Arizona incentives, homeowners save an average of $65,000 over their system’s lifetime, plus benefit from predictable energy costs and increased home value in Scottsdale’s competitive market.
We believe Palmetto Solar offers the best combination of experience, financing options, and local expertise in Scottsdale. Since 2020, we’ve completed 4,982 installations across Arizona, giving us deep understanding of local regulations, utility programs, and permitting processes.
Our financing options include $0-down solar loans, flexible payment plans, and our LightReach leasing program. We handle everything from design and permitting to installation and ongoing support, ensuring a smooth experience for Scottsdale homeowners throughout the entire process.