Solar panels Phoenix, AZ:

Prices, incentives and best companies 2023

Avg Phoenix cost:

$9,151 - $11,185*

Avg 25 year savings:

$25,814 - $31,550

Avg payback period:

7.1 - 8.7 years

Estimate cost and savings based on your location and power usage

* Cost data based on quotes for fully-installed solar panel systems submitted on our platform. Prices are shown after applying the 30% federal tax credit.

Guide to solar panels in Phoenix, AZ (2023)

Updated August 18, 2020

Phoenix is a great place to go solar. Depending on where you live in Phoenix, you could either be using Salt River Project (SRP) or Arizona Public Service (APS) as your utility. Both utilities offers net billing to their customers, so they pay for any excess solar energy their solar customers send to the grid. 

The most significant incentive to install solar panels in Phoenix is the 26% federal tax credit. However, the tax credit is set to step down to 22% at the end of 2020. So in order to get the most savings potential, the best time to go solar in Phoenix is now.

Another key incentive for going solar in Phoenix is the Arizona solar tax credit, which is equal to 25% of the costs of a solar system, up to $1,000. By entering your address into our solar panel calculator below, you can see what other local incentives are available in your area.

On this page:

Current cost of solar panels in Phoenix

Showing data for:

Prices based on a 5.8kW system, after 30% federal tax credit

Solar prices near you

Cost range of local prices

$9,151-$11,185

Net profit (savings less system cost)

$25,814-$31,550

Payback period

7.1-8.7 years

Recommended size for the selected utility bill

5.8kW

Solar panel cost calculator

Best 10 solar installers in Phoenix, AZ

 
calculate the cost and savings you are likely to get from installing solar panels for your home<\/a>.<\/p>","13":"<p><a rel=\"noopener\" href=https://www.solarreviews.com/"https:////www.solarreviews.com//solar-energy//pros-and-cons-of-solar-energy///" target=\"_blank\">The disadvantage of installing solar panels<\/a> Incentives aren't as impressive in some states but overall still above average there is no reason to not go solar in Arizona. Enter your details to <a href=https://www.solarreviews.com/"..//solar-panel-calculators/">calculate the cost and savings you are likely to get from installing solar panels for your home<\/a>.<\/p>","useful_links":"<p><a title=\"Solar energy industries association\" rel=\"noopener\" href=https://www.solarreviews.com/"https:////www.seia.org//state-solar-policy//arizona/" target=\"_blank\">Solar Energy Industries Association (SEIA)<\/a><\/p>","14":"<p><a title=\"Solar energy industries association\" rel=\"noopener\" href=https://www.solarreviews.com/"https:////www.seia.org//state-solar-policy//arizona/" target=\"_blank\">Solar Energy Industries Association (SEIA)<\/a><\/p>","average_monthly_elec_usage":1061,"15":1061,"roof_pitch_degree":23.5,"16":23.5,"typical_kwh_production":1752,"17":1752,"created_at":"2019-04-10 02:11:35","18":"2019-04-10 02:11:35","incentive_overview":"<h4>Federal solar tax credit<\/h4>\r\n<p>The most significant incentive to install solar panels for homes and businesses in Arizona is the <a href=https://www.solarreviews.com/"http:////solarreviews.com//blog//federal-solar-tax-credit/">federal solar tax credit<\/a>. Right now, you can get a tax credit equal to 30% of the total costs of your solar installation. Battery storage systems also qualify for the tax credit. <\/p>\r\n<p><strong>The 30% tax credit is available until the end of 2032.<\/strong> In 2033, the tax credit value will fall to 26% of installation costs. Solar panels installed in 2034 will receive a tax credit equal to 22% of the solar system price before the incentive expires entirely in 2035. <\/p>","19":"<h4>Federal solar tax credit<\/h4>\r\n<p>The most significant incentive to install solar panels for homes and businesses in Arizona is the <a href=https://www.solarreviews.com/"http:////solarreviews.com//blog//federal-solar-tax-credit/">federal solar tax credit<\/a>. Right now, you can get a tax credit equal to 30% of the total costs of your solar installation. Battery storage systems also qualify for the tax credit. <\/p>\r\n<p><strong>The 30% tax credit is available until the end of 2032.<\/strong> In 2033, the tax credit value will fall to 26% of installation costs. Solar panels installed in 2034 will receive a tax credit equal to 22% of the solar system price before the incentive expires entirely in 2035. <\/p>","updated_at":"2023-04-14 06:51:19","20":"2023-04-14 06:51:19","diy_solar":"<p>Yes you can! In some cases, you can save $3,000 or more when you install solar yourself, even after receiving the federal tax credit. Despite the potential for savings, data from Lawrence Berkeley Labs shows that only about 3% of homeowners choose DIY solar. <\/p>\r\n<p>Reasons for this include:<\/p>\r\n<ul class=\"list-disc list-inside ml-4\">\r\n<li>The permitting and inspection process for the utility, the state, and municipalities can be quite complex.<\/li>\r\n<li>The installation work is both dangerous and difficult, with electrical work having to be performed at heights.<\/li>\r\n<li>Often times, solar electricity customers will be charged a premium for DIY installations, which can limit savings.<\/li>\r\n<li>In some states, a solar system needs to be installed by a qualified solar contractor in order to take advantage of incentives. In Arizona, a solar installer must be a licensed electrical contractor with Electricians Licenses: A-17, C11, and L11  to be considered qualified. Utilities and incentive programs may have additional requirements.<\/li>\r\n<\/ul>\r\n<p> <\/p>\r\n<p>SolarReviews does not recommend DIY solar installations unless you have suitable skills. However, for those who do, SolarReviews published <a href=https://www.solarreviews.com/"https:////www.solarreviews.com//solar-panels//solar-panel-kits/">a comparison table displaying solar panel kit prices from the top 10 leading solar kit websites in the US<\/a>.<\/p>","21":"<p>Yes you can! In some cases, you can save $3,000 or more when you install solar yourself, even after receiving the federal tax credit. Despite the potential for savings, data from Lawrence Berkeley Labs shows that only about 3% of homeowners choose DIY solar. <\/p>\r\n<p>Reasons for this include:<\/p>\r\n<ul class=\"list-disc list-inside ml-4\">\r\n<li>The permitting and inspection process for the utility, the state, and municipalities can be quite complex.<\/li>\r\n<li>The installation work is both dangerous and difficult, with electrical work having to be performed at heights.<\/li>\r\n<li>Often times, solar electricity customers will be charged a premium for DIY installations, which can limit savings.<\/li>\r\n<li>In some states, a solar system needs to be installed by a qualified solar contractor in order to take advantage of incentives. In Arizona, a solar installer must be a licensed electrical contractor with Electricians Licenses: A-17, C11, and L11  to be considered qualified. Utilities and incentive programs may have additional requirements.<\/li>\r\n<\/ul>\r\n<p> <\/p>\r\n<p>SolarReviews does not recommend DIY solar installations unless you have suitable skills. However, for those who do, SolarReviews published <a href=https://www.solarreviews.com/"https:////www.solarreviews.com//solar-panels//solar-panel-kits/">a comparison table displaying solar panel kit prices from the top 10 leading solar kit websites in the US<\/a>.<\/p>","city_2_id":0,"22":0,"city_3_id":0,"23":0,"state_tax_credit":1,"24":1,"state_tax_credit_amount":"1000.00","25":"1000.00","diy_solar_allowed":1,"26":1,"pros":"<p>What's <a href=https://www.solarreviews.com/"https:////www.solarreviews.com//blog//pros-and-cons-of-solar-energy/">great about going solar<\/a> in Arizona is that you can take advantage of both the federal and the state tax credits. In addition to these incentives, Arizona receives the most sun in the U.S., so you don't need to buy as many panels to wipe out your electricity bill.<\/p>","27":"<p>What's <a href=https://www.solarreviews.com/"https:////www.solarreviews.com//blog//pros-and-cons-of-solar-energy/">great about going solar<\/a> in Arizona is that you can take advantage of both the federal and the state tax credits. In addition to these incentives, Arizona receives the most sun in the U.S., so you don't need to buy as many panels to wipe out your electricity bill.<\/p>","cons":"<p>Unfortunately, though, utilities in the state don't offer full retail net metering, so savings are a bit lower than you might see in other states. It's not all bad, though; despite the three major utilities in Arizona buying excess solar energy for a lower rate, it's not <em>too<\/em> much lower than the retail cost of electricity. But, over time, the generation credit rate will get lower, so consider going solar sooner rather than later to get the most value out of your solar energy.<\/p>","28":"<p>Unfortunately, though, utilities in the state don't offer full retail net metering, so savings are a bit lower than you might see in other states. It's not all bad, though; despite the three major utilities in Arizona buying excess solar energy for a lower rate, it's not <em>too<\/em> much lower than the retail cost of electricity. But, over time, the generation credit rate will get lower, so consider going solar sooner rather than later to get the most value out of your solar energy.<\/p>","average_monthly_electrical_usage":0,"29":0,"other_incentives":"<h4>Arizona sales tax exemption<\/h4>\r\n<p><a href=https://www.solarreviews.com/"https:////azsolarcenter.org//arizona-tax-incentives/">The solar equipment sales tax exemption<\/a> prevents the state’s sales and uses tax from being applied to solar energy equipment. It also prevents sales tax from being tacked onto renewable energy credits (RECs). The sales tax rate in Arizona is 5.6%, so this exemption saves you from having to spend a considerable amount of money. <\/p>\r\n<h4>Property tax exemption<\/h4>\r\n<p>Typically, installing a solar system on your property would increase property taxes. However, thanks to<a href=https://www.solarreviews.com/"https:////www.azleg.gov//legtext//49leg//1r//bills//hb2332s.pdf/"> Arizona’s Energy Equipment Property Tax Exemption<\/a>, solar systems add no value to your property regarding property tax assessments.<\/p>","30":"<h4>Arizona sales tax exemption<\/h4>\r\n<p><a href=https://www.solarreviews.com/"https:////azsolarcenter.org//arizona-tax-incentives/">The solar equipment sales tax exemption<\/a> prevents the state’s sales and uses tax from being applied to solar energy equipment. It also prevents sales tax from being tacked onto renewable energy credits (RECs). The sales tax rate in Arizona is 5.6%, so this exemption saves you from having to spend a considerable amount of money. <\/p>\r\n<h4>Property tax exemption<\/h4>\r\n<p>Typically, installing a solar system on your property would increase property taxes. However, thanks to<a href=https://www.solarreviews.com/"https:////www.azleg.gov//legtext//49leg//1r//bills//hb2332s.pdf/"> Arizona’s Energy Equipment Property Tax Exemption<\/a>, solar systems add no value to your property regarding property tax assessments.<\/p>","pace_program":"","31":"","state_tax_credit_description":"<h4>Arizona solar energy tax credit <\/h4>\r\n<p>Not only do Arizona residents get to take advantage of the federal tax credit, but they can also receive the <a href=https://www.solarreviews.com/"https:////www.azleg.gov//viewdocument//?docName=https:\/\/www.azleg.gov\/ars\/43\/01083.htm\%22>state%e2%80%99s solar energy credit.<\/a> Arizona’s solar energy credit is equal to 25% of the costs of a solar system, up to $1,000. That is a significant amount of savings on your income taxes. <\/p>","32":"<h4>Arizona solar energy tax credit <\/h4>\r\n<p>Not only do Arizona residents get to take advantage of the federal tax credit, but they can also receive the <a href=https://www.solarreviews.com/"https:////www.azleg.gov//viewdocument//?docName=https:\/\/www.azleg.gov\/ars\/43\/01083.htm\%22>state%e2%80%99s solar energy credit.<\/a> Arizona’s solar energy credit is equal to 25% of the costs of a solar system, up to $1,000. That is a significant amount of savings on your income taxes. <\/p>","rebates":null,"33":null,"net_metering_content":"<h4>Arizona net billing<\/h4>\r\n<p>Arizona replaced full retail net metering with net billing in 2016. <a href=https://www.solarreviews.com/"https:////docket.images.azcc.gov//0000176114.pdf/">Net billing<\/a> is similar to net metering, except that excess energy produced by a solar system is credited at a lower rate than what you pay for electricity. <\/p>\r\n<p>So, if your system produces more electricity than you use, you will still be compensated for that excess generation; it will just be less than the retail rate. The exact rate varies from utility to utility.<\/p>","34":"<h4>Arizona net billing<\/h4>\r\n<p>Arizona replaced full retail net metering with net billing in 2016. <a href=https://www.solarreviews.com/"https:////docket.images.azcc.gov//0000176114.pdf/">Net billing<\/a> is similar to net metering, except that excess energy produced by a solar system is credited at a lower rate than what you pay for electricity. <\/p>\r\n<p>So, if your system produces more electricity than you use, you will still be compensated for that excess generation; it will just be less than the retail rate. The exact rate varies from utility to utility.<\/p>"}}" data-lazy-state-abbr=""> See all local installers

Phoenix solar panel cost & savings calculator

Current solar incentives and tax credits available in Phoenix, AZ

Net metering

Arizona does not offer full retail net metering. Instead, Arizona utilties are required to compensate their solar customers who export energy to the grid with an on-bill 'export credit'. This export credit is worth less than the full retail rate of electricity. 

For instance, Phoenix resdients who use APS will recieve $0.1045 per kilowatt hour (kWh) of excess solar energy they send to the grid. This is slightly lower than APS's retail rate of electricity of around $0.12 per kWh. 

Arizona solar energy tax credit 

Not only do Arizona residents get to take advantage of the federal tax credit, but they can also receive the state’s solar energy credit. Arizona’s solar energy credit is equal to 25% of the costs of a solar system, up to $1,000. That is a significant amount of savings on your income taxes. 

The 30% federal solar tax credit explained

The most significant incentive to install solar panels for homes and and businesses is the federal tax credit. Right now, the federal tax credit is equal to 30% of the total cost to install a solar system. The amount of the tax credit is then deducted from your federal taxes. You can claim the credit over several years if the amount you owe in taxes is less than the amount of your tax credit. You can only take advantage of the federal tax credit if you pay federal income taxes. At the end of 2032, the amount of the tax credit will fall to 26%. Even though there is no rush to get the maximum tax credit value, you don’t want to wait when it comes to a financial investment like installing solar. The best time to go solar is now.

How much will solar panels on my home save me?

The answer to this question depends on your electricity usage. Generally speaking, the higher your power usage, the greater your potential savings are from installing solar.

The average monthly electricity usage in Arizona is about 1,030 kWh per month. However, you are most likely using a lot more than this since this average includes small apartments and condos.

The Phoenix solar panel savings calculator uses our database of electric rates from local utilities to convert your monthly power bill into how much electricity your home uses. From there, the calculator can work out how many solar panels you need to offset your power usage, how much a solar system will cost based on prices of local solar companies, and the amount of money you will save on your electric bill.

Cost and savings for a 9.22 kW average-sized solar system in Phoenix

Cost per watt range

$2.06 - $2.52

Net cost of system

$15,646

Average payback

7.3 - 8.9 years

Annual power production

14,328 kWh

Levelized cost of solar energy

4¢ /kWh

If you don't get solar

18¢ /kWh

(forecast avg Arizona electric rates over the next 25 years)

Average solar savings on this system over the next 25 years

$44,521

(Savings shown after repayments of capital)

Related topics:

Are solar panels worth it in Phoenix

Solar panels have fallen in price by more than 80% in the last ten years. In 2023 they also remain subsidized by the 30% federal tax credit and the net metering law making them an excellent investment. They offer a return well above the long term average return from both the share market and also property investment.

Another way to look at this question is the levelized amount you will pay for each kWh of power you will use over the next 25 years with and without solar panels. As you can see below the savings are significant.

Going solar in AZ

Check out all of the ways energy providers of can help you be more energy efficient and save money.

Table 2: Available incentive programs
Eligibility: Federal incentive
Type: Personal Tax Credit
Eligibility: State incentive
Type: Net Metering

Showing 1 - 2 of 5

Note: Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.

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