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Solar Panel Cost in Phoenix, Arizona

Local pricing, savings, and net metering data for Phoenix homeowners.

$1,460
Annual Savings
7 yrs
Payback Period
$10,186
Net Cost
$39,684
25-Year Savings

Cost & Savings Breakdown

Based on $150/month electric bill in Phoenix

System Size
5.9 kW
Annual Production
11,061 kWh
Gross System Cost
$15,980
Federal Tax Credit (30%)
-$4,794
State Incentive
-$1,000
Net Cost
$10,186
Monthly Savings
$122
CO₂ Offset/yr
10,176 lbs

25-Year Savings Projection

-$9k$3k$15k$28k$40kBreakeven yr 7$40kyr 1yr 5yr 10yr 15yr 20yr 25

Utility & Net Metering

Local UtilityArizona Public Service
Net Metering PolicyFull Retail
Compensation RateFull retail rate
Capacity Limit125% of annual consumption
Electricity Rate$0.132/kWh
Peak Sun Hours6.4 hrs/day

Available Incentives

30%
Federal ITC — Deduct 30% of your system cost from federal taxes. Available through 2032.
$1,000
Arizona State IncentiveArizona offers a 25% state tax credit up to $1,000.
View all Arizona incentives →

Common Questions

How much does solar cost in Phoenix?

Solar in Phoenix, Arizona costs approximately $15,980 for a 5.9 kW system. After the 30% federal tax credit, your net cost is about $10,186.

What is the solar payback period in Phoenix?

The estimated payback period for solar in Phoenix is 7 years, based on a $150/month electric bill and local sun hours of 6.4 hrs/day.

Does Arizona Public Service offer net metering?

Arizona Public Service offers Full Retail net metering. Full retail rate.

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