Ultimately, solar energy will at least save you money and give you a sense of satisfaction with the idea of saving 106 trees a year by simply using the sun`s energy to power the electrical components of your home. By taking a close look at your local energy rates, combined with all the payments you need to make for your system, you can make a solid decision that will serve you well in the years to come. Just like 37 other states, Arizona offers a property tax exemption for those who choose solar as their preferred method of going green. There is no cap on the amount of equipment you can claim for this exemption, but you must provide your county assessor with documents about the purchase and installation. This information must be provided within six months of installation to be eligible for the exemption. Considering that solar panels can add value to your home of $20,000 or more, this exemption is definitely worth the time and effort to apply. Typically, your lease lasts for 20 years and the leasing company takes care of the insurance, monitoring and guarantee of electricity. In addition, they must also take care of the equipment, as it is still in their possession. This is certainly an advantage of a rental option, since solar panels are under warranty for the duration of your rental, you don`t have to go out of your pocket to pay for expensive repairs.
PPAs avoid the initial investment costs associated with installing a solar PV system and simplify the process for the host customer. However, in some states, the PPA model faces regulatory and legislative challenges that developers would regulate as an electric utility. A solar lease is another form of third-party financing that is very similar to a PPA but does not involve the sale of electricity. Instead, customers rent the system like an automobile. In both cases, the system is owned by a third party, while the guest customer enjoys the benefits of solar energy with little or no upfront cost. These third-party financing models have quickly become the most popular method for customers to reap the benefits of solar energy. Colorado, for example, first entered the market in 2010, and by mid-2011, third-party installations accounted for more than 60 percent of all residential installations, rising to 75 percent in the first half of 2012. This upward trend is evident in all countries that have introduced third-party financing models. The $/kWh rate for excess electricity is calculated using a resource comparison proxy, which bases the rate on the amount the utility itself pays for its solar power purchase agreements. Each utility calculates its own rates and submits them to the CCA for approval. As of April 2017, only APS had submitted its tariffs. SREC – Solar Renewable Energy Credits – have played a huge role in the popularity of solar energy in residential buildings.
These loans allow homeowners to sell their power generation certification to utilities for a fairly high profit – in some cases, a few hundred dollars. The purpose of these sales is to help utilities meet the state government`s requirements for alternative energy generation. Interconnection is the process of connecting your solar energy system to the local utility grid so you have access to the extra power you might need that goes beyond what your system produces. The connection also allows for net metering, a way to return additional electrical power to the grid so you can credit it on future energy bills. * Note that these are estimates that are for informational purposes only and do not take into account the full complexity of all financial forecasts. They also only apply to cash purchases, which means your numbers are different when you rent your system or pay with a loan (interest rate estimate). Please also note that we are not financial advisors, so this information should not be construed as financial advice. The lack of SREC in AZ is good and bad – good because it`s largely due to the fact that state utilities are at a point where they are able to meet RPS requirements for green energy generation, eliminating the need to purchase certificates from private owners of solar installations. This is bad because it means that consumers cannot use their own solar power generation in Arizona like those in many other states.
It also means that the payback period in Arizona is longer than usual. Ultimately, your decision to opt for a PPA or solar lease depends on how you want to be billed. .