On average, your investment in a solar system will pay for itself in anywhere from 7-12 years. The payback on your system will vary based on many factors. Beneath the graph showing a typical customer's payback, we discuss some of the factors that can increase your return on investment
The cost of your electricity now and in the years to come will affect how quickly your system pays for itself. The U.S. Energy Information Administration predicts rising utility rates across the U.S. as demand for electricity grows. Meeting this demand will require large amounts of capital for new power plants. At the same time, reinvestment to update aging plants and infrastructure will also put a strain on resources. The graph above assumes that utility rates continue to rise at the APS 5-year average of 4.38%. Depending on variables such as fossil fuel prices, demand, infrastructure maintenance, etc… your solar system may have an even higher return on investment.
Your Home’s Solar Resource
The orientation of your home, roof type, and any shading obstacles near your home can impact the cost of the system. Fortunately, low-cost design solutions exist for less than ideal sites.
Available Financial Incentives
In past years, Arizona utility companies have provided incentives for their customers to install solar. The future of utility incentives is unclear, but state and federal tax credits are still available.
For more about incentives, click here.