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Posted: 2024-09-19 15:33:00

A high energy bill can significantly impact household budgeting. A recent CNET Money survey found that 78% of Americans are stressed about paying energy bills. While it might be possible to tackle an increase in prices with budgeting, in the long run, a more sustainable solution like solar power might be your best bet. And if you're a resident of Tucson, installing solar panels is the prudent thing to do, because if there's one thing that's not in short supply in Tucson, it's the sun.

Tucson is thoroughly baked by sunlight, receiving more than 350 days of sunshine per year, making it a worthy candidate for homeowners to consider a solar panel system. Tucson residents can also take advantage of various solar incentives for Arizonans statewide.

Finding the right solar installer is the first (and most important) step in going solar. And just like in many other parts of Arizona, there are tons of solar companies to choose from in Tucson. Here's everything you need to know about going solar in Tucson.

Best national solar panel companies in Tucson

Looking at larger solar panel companies can be a good place to start your search. We've compiled a list of some of the best national solar panel companies that service the Tucson area.

Palmetto Solar

Solar panels are typically low maintenance equipment, but they're also unfamiliar. If you want to reap the benefits of solar but will have a bit more peace of mind if someone else is making sure it's working, Palmetto might be a good fit for you. Just remember to add the cost of Palmetto's monitoring service in to your payback period calculations.

SunPower Solar

If you're looking for top-of-the-line solar panels, SunPower is your best choice. But don't write it off if you're looking for a less flashy installation that will get the job done. This year it started installing Qcells panels, which should make an installation from the longest-tenured company on our list available to more people.

Elevation

Elevation's focus on your home's energy efficiency isn't the norm in the industry. If you're planning on addressing energy efficiency first, working with Elevation allows you to keep the whole process with one company. Elevation's solar equipment comes from well-established and well-regarded companies. Elevation's warranties on workmanship and weatherization could be a bit longer.

Freedom Forever

Include Freedom Forever in your search if you want the backing of a national company that installs a wide variety of the most popular solar equipment available. Freedom Forever also extends a couple of products that take some of the pain and risk out of going solar, like a production guarantee and an escrow option with cash purchases. Online reviews say customer satisfaction has been low of late, though the company says that's changing.

Tesla Solar

Tesla's solar branch seems to be the least loved of Elon Musk's ventures. Even Tesla's Solar Roof seems to get more love.

If price is the thing you won't budge on, consider Tesla. By all accounts, Tesla installs quality panels and makes the closest thing there is to a household name in solar storage: the Powerwall.

Where you might miss out is customer service. Discussion online seems to suggest Tesla's service is a bit of a gamble.

Momentum Solar

Momentum installs in 11 states without using subcontractors. While using in-house installers doesn't guarantee a better experience, it does suggest you're likely to get a more uniform experience from Momentum. The fact that Momentum backs its installations with a 25-year workmanship warranty hints at a strong belief in its crews' ability. If Momentum is part of your search, consider the warranties against leaks that other companies offer. Momentum's is five years, which isn't the best.

Local solar panel companies in Tucson

National solar companies aren't your only options to go solar. There are plenty of local installers in Tucson that could be solid options as well. Make sure to get a variety of quotes during your hunt for the right installer. A mix of quotes from national and local installers should give you a good variety. Here are a couple of local solar installers in Tucson that may be worthwhile options. 

Technicians for Sustainability is another highly rated Tucson solar installer, having installed more than 4,300 systems. The company itself is actually an employee-owned cooperative with 29 total employees as of 2024. Technicians for Sustainability offers solar panel and solar battery installations, as well as a free on-site consultation.

How to determine which solar company in Tucson is best for me

Picking a reputable solar company is the most important (and trickiest) step in going solar. There are a few things to keep in mind before deciding which company to go with. Some basic things to look for are how long a specific solar company has been in business, how many installations in the Tucson area it has done and whether the company does the work itself or if they mainly use subcontractors. It's also a good idea to check the company's reviews on Google, Yelp and Angi.

Reputable solar companies should be familiar with any incentives available in the area. They should also be familiar with local permitting and transparent about how system financing works. But most importantly, they should be able to answer any and all questions you might have. If they can't provide a good answer, that's a red flag.

Don't be afraid to shop around. You don't need to sign a contract with the first solar company you speak with. Shopping around could end up saving you thousands of dollars in the long run. We recommend getting at least three quotes before settling on an installer.

Cost of solar panels in Tucson

Solar panels in Tucson tend to be a bit cheaper than the national average. Nationally, residential panels will run homeowners around $3.67 per watt, according to data from FindEnergy, though estimates do vary. In Arizona, panels typically cost a little over $3 per watt, while the average total cost of a solar panel system is around $25,500.

However, solar pricing should be taken with a grain of salt. Because solar panels are such a site-dependent purchase, you won't be able to get an accurate quote for your home online. A reputable solar installer will be able to perform a site inspection of your property to see if your home is right for solar panels.

There are a bunch of factors that ultimately determine how much panels cost, which can include things like taxes, rebates, labor and the type of solar equipment installed. If you choose to add a solar battery, this will cost you even more.

Average cost of solar panels in Tucson

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Typical system size (kW)Price per wattTotal installed cost (before incentives)Total cost after 30% federal tax credit
Tucson, Arizona 8$3.07$24,560$17,192
National average 6.67$3.67$31,558$22,091

Tucson solar panel incentives and rebates

The state of Arizona offers a variety of solar incentives, including a state tax credit allowing you to save up to a thousand dollars off the cost of your solar system. You'll be safe from increased property taxes and sales tax on your solar system as well. Arizona also has a statewide net metering policy. Net metering allows you to sell any excess energy generated by your solar system to the local utility. However, you'll be compensated less for your excess energy in Arizona. 

Arizona's net metering policy is technically more of a "net billing" policy. Instead of being compensated at the retail rate (the rate you pay for electricity), you'll be compensated at the utility's avoided cost rate (the rate the utility buys energy from its suppliers).

Tucson solar incentives

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ProgramDescription
Federal residential clean energy credit A tax credit allowing you to claim up to 30% of the total cost of your solar panel system in federal taxes.
Net metering Net metering lets you sell your excess solar energy to the local utility. Arizona operates under a "net billing" policy, meaning you'll be compensated at a lower rate for your excess energy.
Income Tax Credit for Residential Solar Devices A state tax credit of 25% of installation costs, up to a maximum of $1,000
Sales tax exemption Solar panels are exempt from state sales tax in Arizona.
Property tax exemption Solar panels are exempt from property tax in Arizona. This exemption is for 100% of the increased value to a property as a result of installing a solar system.

Installation factors to keep in mind

Before you get ready to go solar, there are things to keep in mind that may be of particular importance in and around Tucson. One example is heat.

"A misconception is that panels perform better because it's hot," Scott Wedge, a solar consultant and owner of Arizona-based solar firm SunSpark Solution, told CNET. "Optimal panel performance is at 78 degrees Fahrenheit. Every degree higher, your panels perform less."

In Tucson, the average high temperature is above 75 degrees Fahrenheit for nine months out of the year. Here are some other variables that may be important to note:

  • Your roof: Roofs come in all different shapes, sizes and ages. If your roof is old or damaged, it may need to be repaired or replaced before putting panels up there. 
  • Tucson peak sun hours: Tucson gets a lot of sun, and that means a lot of potential power generation. In Tucson and the nearby area, homeowners can likely expect around five or six peak sun hours per day. This is when the sun is at its highest point during the day.
  • Heat: As discussed above, heat can have a negative impact on your panel's performance. They may operate at optimal efficiency during only a few months of the year in Tucson.
  • HOA regulations: Arizona has solar access laws in place, which prohibit HOAs from banning solar installations.
  • Homeowners insurance: You should check your homeowners insurance policy to see if there are any issues with solar systems. You'll also want to see if your system is covered by your existing policy once it's installed.

How to pay for solar panels in Tucson

There are numerous ways to potentially fund a new solar system in Tucson, including paying upfront and in full in cash, as well as financing or borrowing routes.

Cash

If you can afford it, paying upfront with cash is your best option. This can help avoid borrowing fees or interest payments. And best of all, you'll be debt-free.

Solar loan

Solar loans are financing options offered through solar companies. Like other loans, they'll likely involve fees and interest payments. It's a good idea to shop around for various solar loans to see who will give you the best rate.

HELOC or Home equity loan

You may be able to get a home equity line of credit, or HELOC, or a home equity loan to pay for a solar system. A HELOC is a line of credit that's secured against your home's equity and may be used to pay for a solar system. However, some homeowners may not be comfortable putting their home up as collateral to pay for a solar system.

Personal loan

You can apply for personal loans at most banks and credit unions. They're easy to find, but interest rates may vary. Just like with any loan, it's best to shop around to see what your options are. 

Solar leases

If you don't want to own a solar panel system, it's possible to lease solar panels. A solar lease is similar to any other lease, in which you'll pay monthly fees for panels rather than purchasing them. The specifics and terms will vary, but again, you can shop around for lease options. 

Power purchase agreement

A power purchase agreement could also be an option. These agreements see a solar company install a system and retain ownership of it, while selling the homeowner the energy it produces. These agreements have their pros and cons but are another potential avenue for securing a solar system without breaking the bank.

Frequently asked questions

How long does it take to pay off solar panels?

The time it takes to pay back your solar system will depend on the type of financing you chose and the terms dictated in the agreement. In all likelihood, it will take several years.

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Are solar panels worth it in Tucson?

Solar panels may be worth it in Tucson, especially given how much sun the city receives on an annual basis and the variety of incentives available. That said, whether it's "worth it" or not will depend on an individual's preferences and budget.

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Does Tucson offer a solar tax credit?

Tucson itself does not offer a solar tax credit, but the state of Arizona does. The Income Tax Credit for Residential Solar Devices allows you to claim up to 25% of the cost of your solar system on your state taxes, up to $1,000. You'll also be able to take advantage of the federal solar tax credit. This is a credit allowing you to claim up to 30% of the total cost of your system back in federal taxes.

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