According to the U.S. Energy Information Administration (EIA), energy costs in Arizona have been on the rise in recent years and are expected to continue increasing. This is due to various factors, including the growing demand for energy and rising production and distribution costs.

Energy Cost Inquiry: Gas, Eelctricity, and Propane Rates In Arizona

There are several local utility companies in Arizona, including Arizona Public Service (APS), Tucson Electric Power (TEP), Salt River Project (SRP), and Southwest Gas Corporation. According to these utilities, and the Energy Information Administration, as of August 2021, the average cost of electricity in Arizona is around 12 cents per kilowatt-hour. The cost of natural gas varies depending on the supplier, but the average price is currently around $0.70 per therm. Propane prices also vary, but as of August 2021, the average cost in Arizona is around $2.50 per gallon.

Knowing the average cost of electricity, natural gas, and propane in Arizona can help you better manage your energy expenses. Here are a few additional points to consider:

• The cost of electricity can vary based on factors such as the time of day, the season, and the utility company you use. For example, some utility companies offer time-of-use pricing plans that charge different rates for electricity based on the time of day. 
• Natural gas prices can be affected by a variety of factors as well. These may include the cost of production, transportation, and storage, as well as supply and demand in the market. 
• Propane prices can also fluctuate based on factors such as supply and demand, production costs, and availability. It is important to keep in mind that propane is often used for heating, so prices may be higher during the winter months. 

Replacing Gas Water Heater with Solar Hot Water: Cost Savings in Arizona

Replacing a gas water heater with a solar water heater in Arizona can bring significant cost savings over time. Here are some key points to consider: 

• Arizona is known for its abundant sunshine, which makes it an ideal location for solar water heating systems. 
• With a solar water heater, you can reduce your reliance on natural gas and electricity, which can lead to lower energy bills. 
• A solar water heater, according to the US Department of Energy, can save the average household between $50 to $100 per month on energy bills. This is an important consideration as energy costs continue to rise, and the savings are expected to increase as well. This equates to an average drop of 50% -80% on your utility bills, with the added assurance of protection from future fuel shortages and price hikes. When building a new home or refinancing, the economics become more attractive. Including the price of a solar water heater in a new 30-year mortgage usually amounts to between $13 and $20 per month. The Federal income tax deduction for mortgage interest attributable to the solar system reduces that by about $3 - $5 per month. So, if your fuel savings are more than $15 per month, the solar investment is profitable immediately. On a monthly basis, you’re saving more than you’re paying.  
• Additionally, many utility companies in Arizona offer rebates and incentives for homeowners who install solar water heaters, which can further offset the cost. There are various solar water heating rebates and incentives available in Arizona offered by utility companies. These rebates can help offset the cost of installing a solar water heater for homeowners. To know the specific rebates available, you can check with your local utility company or visit their website for more information. Some additional resources to check out include the Arizona Department of Energy and the Database of State Incentives for Renewables & Efficiency (DSIRE). 

In addition to the rebates and incentives offered by utility companies, there are also federal tax credits available for installing a solar water heater in your home. These tax credits can cover up to 30% of the cost of installation and are available for both residential and commercial properties. To qualify for the tax credit, the solar water heater must meet certain requirements, such as being certified by the Solar Rating and Certification Corporation (SRCC) and being installed before December 31, 2032. 

Replacing a gas water heater with a solar water heater in Arizona can provide both financial and environmental benefits. Replacing a solar water heater with solar water heating replacement parts is also financially responsible with increased environmental benefits.   

Analyzing the Market for Solar Hot Water Replacement in Arizona 

The solar hot water replacement market in Arizona is an industry gaining traction among homeowners. With the increasing demand for renewable energy solutions, solar hot water systems have long been a viable option for those looking to reduce their carbon footprint and save money on energy bills. Arizona's abundant sunshine makes it an ideal location for solar hot water systems, and there are several companies that specialize in installation and maintenance.  

 With a large network of installers and distributors, we are able to serve towns and cities throughout Arizona. Below are just some of the towns and cities we currently service:

• Phoenix
• Scottsdale
• Peioria
• Tuscon
• Glendale
• Mesa
• Chandler
• Gilbert
• Avondale
• Cave Creek
• Sun City
• Fountain Hills
• Tolleson

For details on your nearest SunEarth distributor or installer, contact one of our friendly professionals today.

Southwest Gas Solar Water Heating Rebate

Go solar, Arizona, and save money in the long-run. There isn’t a more abundant energy source than the sun, and when you install a solar water heating system with natural gas back-up, you’re benefitting from a cleaner and greener water heating system. You can take advantage of big savings with rebates on qualifying solar water heating systems for your home today! 

• Reduce the cost of heating water in half
• Generate hot water for your home and business in a cost-effective way
• Can be used in any climate
• Reduce hot water operating costs up to 90% by using the sun's energy

*Equipment must be installed by a Qualified Contractor.

Energy Equipment Property Tax Exemption

Arizona’s property tax exemption was established in June 2006 (H.B. 2429) and originally applied only to “solar energy devices and any other device or system designed for the production of solar energy for on-site consumption.” For property tax assessment purposes, these devices are considered to add no value to the property. 

Solar Design Standards for State Buildings

Arizona law requires that new state building projects over 6,000 square feet follow prescribed solar design standards. Solar improvements should be evaluated on the basis of life cycle costs. Affected buildings include buildings designed and constructed by the department of administration, school districts and universities. These projects must include an evaluation of: (a) proper site orientation; (b) active and passive solar energy systems for space heating; (c) solar water heating; and (d) use of solar daylighting devices.