This report presents an analysis of the financial returns that a photovoltaic system can provide for the average Arizona household. Special attention is given to construct a full comparison between the financial payoffs of a 4.5 kW photovoltaic (PV) system and an alternative long-term investment, such as a bond or certificate of deposit. The comparison shows that homeowners investing in solar energy can earn healthy untaxed returns, while gaining a hedge against future increases in electricity costs.

 

Numerical figures used for this analysis are largely reflective of statistical means. Therefore, a multitude of factors, such as an individual household’s utility company, surrounding environment, or roof style, may dramatically affect the rate of return and savings rendered each month. Nevertheless, the current rebate levels available to most Arizona citizens, in conjunction with the state’s bountiful sunshine, should, on average, allow the typical homeowner to realize the following: