Comparing the Cost of Solar to Traditional Energy
The easiest way to make a direct comparison is your energy bill. On average, Arizonans pay one of the highest electricity bills in the nation at $120 per month for residential and $615 for commercial. Those figures approximate to $1440 and $7280 per year, respectively.
This provides a simple shorthand we can use to determine how quickly a solar installation will pay for itself. For example:
- The average cost to install a 6 kW system in Arizona is $19,384 after Federal incentives.
- This would largely replace and reduce the annual electricity bill.
- It would only take 7-9 years for the system to pay for itself and start seeing even greater savings!
Here’s a comparison chart showing what your solar might cost per month:
Avg. Cost/Month | Avg. Annual Cost | Cost Over 10 Years | Potential 10-Year Savings | |
---|---|---|---|---|
Fossil fuel (traditional) | $120 | $1440 | $14,400 | $0 |
Renewable solar ($11,233 paid upfront) | $20 (mostly grid fees) | $240 | $2400 | $12,000 ($767 after equipment cost) |
Renewable solar ($0 up front lease) | $80 (includes equipment lease) | $960 | $9,600 | $4800 |
While your actual figures may vary from this example, you can see how solar would save money. In fact, even with a $0 down lease, there are immediate cost savings compared to traditional grid energy.
(Note: traditional energy bills have increased every year. This trend is expected to continue, making the long-term solar savings potentially higher over time!)