The state Arizona is situation in the south western region of the United States of America. In this post I will discuss the financial feasibility of the residential solar in Arizona. The system is financial feasible if it offers more return than the risk free return offered by the state. The risk free return in USA on 20 year bond is 2.9%. If my solar system offers return higher than 2.9% then my solar system is feasible otherwise it is not. Let's quantify the financial feasibility of the state.
System cost & electricity rate
As you can see that the actual return offered by the system is 3.7% per year than the risk free rate of return of 2.9% per year, making the system feasible to be installed on the rooftop. Although I have not taken in account the incentives/rebates offered by the state government and if you consider that then the solar become even more lucrative energy option in the state.