How Much Can Solar Panels Reduce Your Energy Bill in Phoenix

Solar panels have become increasingly popular over the last several years thanks to professionals such as August Heiss from ADH Solar in Phoenix. In some cases, they are even mandated by local governments due to their environmental friendliness. But the question still remains how much can solar panels reduce your energy bill in Phoenix? I decided to investigate this topic myself by conducting a study of my own.

Initial Research before contemplating Solar Installation

Throughout the course of the project, I was able to find out just how much a typical homeowner could expect to save using solar panels. To conduct this particular experiment I chose to focus only on the savings experienced by homeowners located in Arizona, specifically those who live in the city of Phoenix. I wanted to make sure that any potential savings were not skewed towards people who lived in rural communities where the cost of electricity would be lower than in urban communities. I also wanted to ensure that I got accurate data regarding the average rates that residents paid for power in Phoenix.

After doing research online I discovered that the average rate charged by utility companies in Phoenix is around 13 cents per kilowatt hour. If we take this number and divide it by 24 hours, we get about 0.05 dollars per hour. So, if we assume that each consumer uses 1kwh of electricity per day then we end up with $0.05 per kWh.

A glimpse into possible electricity bills after taking into energy independence

Now let’s look at what happens if we use solar panels instead of using conventional methods of generation. We know that the average price of solar panel installation ranges between $10-$20 per watt, which means that the cost of installing a 100w solar panel system is somewhere around $1000-$2000. However, once installed, a homeowner now receives free electricity for the entire year. On top of that, many states offer rebates and tax credits for going green and saving our environment. This is why the average cost of solar panels is often less expensive than regular electric bills.

As stated above, the average rate charged by the utility company is $0.05 per kWh. If we multiply this figure by the amount of electricity generated by the solar panel system, we arrive at a total monthly bill of $25.00. Since the initial investment of the solar panels was covered by the rebate program, this final bill was reduced significantly, bringing the total down to $18.50. Therefore, even after paying for the initial investment of the panels, homeowners saved roughly 50% of their monthly electrical bill.

Beneficial Results after going through Solar panel Installation

These results show that solar panels are extremely effective at lowering energy costs. However, there are certain caveats that need to be considered before purchasing them.

  • First off, the initial cost of the panels themselves may seem prohibitively high, however, it is important to note that while the first few months of operation may be costly, the long-term benefit of reducing your energy bill outweighs the upfront expense.
  • Also, the best time to purchase solar panels is right after the summer months, since the demand for electricity is low and prices tend to be cheaper.
  • Finally, it is always recommended that you do your homework prior to making any major purchases.


Make sure you have enough sunlight to power your system, check out the maintenance requirements of the panels, and determine whether or not you are eligible for any incentives, solar tax credit, or tax breaks offered by your state government. By contacting August Heiss from ADH Solar in Phoenix, along with the advice on providing proper maintenance to your solar panel system and the latest prices, you should be well equipped to choose the perfect solar panels for your home.

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