Massive Problems with Solar in Arizona

In a place like Phoenix, where we get over 300 days of sunshine a year, you might assume that every home has solar panels. After all, it's the "Valley of the Sun" and the idea of eliminating or dramatically reducing your electric bill sounds amazing—especially during those scorching summer months. But here’s the truth: solar isn't always a no-brainer. In fact, there are some massive problems with solar in Arizona that homeowners need to consider before jumping in.

The True Cost of Going Solar

Let’s start with cost. Installing solar panels on a 2,000 sq ft home in Phoenix can run you anywhere between $15,000 and $40,000, according to Fixr.com. Why such a huge range? It depends on how many panels you need and whether you're buying or leasing.

Leasing vs. Buying

Leasing usually involves a 20-year contract with escalating payments. That means your monthly cost increases every year. Many homeowners don’t realize that leasing often comes with a lien on your property, which can complicate things if you decide to sell. Also, if you lease fewer panels to save money, your electric bill might still be high—defeating the purpose.

On average, summer electric bills in Phoenix hover around $450. If solar reduces that to $225, and you’re still paying a $150–$250 lease, you could be saving only a little—or possibly paying more overall.

Buying Outright

Buying your solar system outright will cost you $25,000 to $40,000 upfront. You’ll need to live in the home at least 8–10 years to see a full return on that investment. Plus, maintenance is on you unless you go with a prepaid lease plan where the solar company handles repairs.

Incentives Are Fading

Federal tax incentives once made solar more appealing. In 2023, the credit stood at 26%, dropped to 24%, and is expected to disappear by 2024. If solar is on your radar, act quickly to take advantage of what’s left—but keep in mind it only reduces the cost, not eliminates it.

The Net Metering Dilemma

Arizona Public Service (APS) used to offer a 1:1 net metering program, meaning they'd pay you the same rate for excess energy that they charged you. Not anymore. Since 2016, APS has lowered their reimbursement rate. As of now, they pay 9 cents per kWh, while charging customers 12 cents per kWh. That gap adds up.

Selling a Home with Solar Complications

This is where things get tricky. If you have a leased solar system, buyers must qualify not only for the home loan but also the solar lease payment. This added debt can disqualify them from purchasing your home. It’s not uncommon for buyers to walk away, ask you to remove the system, or be turned off entirely.

The Roof Factor

A solar setup on an aging roof? Big mistake. If your roof needs to be replaced, you’ll have to pay to remove and reinstall the solar panels, which can cost tens of thousands of dollars. And no, most roofers won’t touch solar—the solar company has to handle it.

When Solar Companies Vanish

What happens if your solar provider goes out of business? Hopefully, they arranged for another company to honor their warranties. If not, you could be stuck without support.

So, Does Solar Add Value?

From what I’ve seen, solar rarely adds significant value to a home unless:

• The roof is new
• The panels are fully paid off
• The system covers your entire energy usage

Only in those cases does solar tend to be a benefit in a sale—and even then, it’s not by much.

Bottomline

Would I love to not have an electric bill? Absolutely. But solar only makes sense if you do it right—with a new roof, full payment up front, and enough panels to actually offset your usage. Otherwise, it could end up costing you more than it saves.

If you found this helpful and want to dive deeper, check out my other blog post: The Top Reasons People Regret Moving to Phoenix, Arizona. It covers more hard truths every homeowner and future resident should know.

Got questions about solar, real estate, or anything in between? I’m always here to help.