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Solar Panel Cost in Arizona

Average costs, savings, and incentives for solar installations across Arizona.

$2.70
Avg Cost/Watt
6.5 hrs/day
Peak Sun Hours
$0.128/kWh
Electricity Rate
Full Retail
Net Metering

Estimated Savings for a Typical Arizona Home

Based on a $150/month electric bill

System Size
6 kW
Gross Cost
$16,226
Federal Credit
-$4,868
State Incentive
-$1,000
Net Cost
$10,358
Annual Savings
$1,460
Payback Period
7.1 yrs
25-Year Savings
$39,512
CO₂ Offset/yr
10,494 lbs

Arizona Solar Incentives

30%

Federal Investment Tax Credit (ITC)

Deduct 30% of your total solar installation cost from your federal taxes. Available through 2032 with no dollar cap.

$1,000

Arizona State Incentive

Arizona offers a 25% state tax credit up to $1,000.

Net Metering Policy: Full Retail

Top utility in Arizona: Arizona Public Service. View full incentives detail →

Solar Costs by City in Arizona

City Annual Savings Payback (yrs) Population Utility
Phoenix$1,46071,608,139Arizona Public Service
Tucson$1,4606.3542,629Tucson Electric Power
Mesa$1,4608504,258Arizona Public Service
Chandler$1,4607275,987Arizona Public Service
Gilbert$1,4606.2267,918Arizona Public Service
Scottsdale$1,4606.3258,069Arizona Public Service
Glendale$1,4606.6248,325Arizona Public Service
Tempe$1,4607.7195,805Arizona Public Service
Peoria$1,4606.5190,985Arizona Public Service
Surprise$1,4606.2144,416Arizona Public Service

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Quick Facts: Arizona

  • ⚡ Avg rate: $0.128/kWh
  • 🌞 Peak sun: 6.5 hrs/day
  • 🏭 Top utility: Arizona Public Service
  • 📋 Net metering: Full Retail
View all Arizona incentives →