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Arizona Solar Information

Arizona isn’t a bad state for solar. There’s always enough sunshine to cover your basic energy needs or at least to reduce your monthly electricity bill. The 26% Federal Solar Tax Credit as well as some local incentives will make your solar installation even more profitable.
  • #1
    Arizona ranks #1 in the USA for savings from installing solar panels
  • 7288.64 kWh
    Annual AC energy output of a 4 kW solar system installed in Arizona
  • 6.30 kWh
    Solar Radiation (kWh / m2 / day)
  • 12 ¢ /kWh
    The cost of electricity today in Arizona Public Service Co
  • 25 ¢ /kWh
    If you don't go solar. The forecast average utility price over the next 25 years

Arizona Solar Facts

  • $1.54
    Average cost of a 4kw solar power system in 2019.
  • 5 years
    Average system payback period.
  • $52,034.91
    Average lifetime savings.
  • 5 ¢ /kWh
    Levelized cost of solar energy.
  • 5 kW
    Recommended system size.

Arizona is the sunniest state in America. With its plentiful sunshine, Arizona ranks the 1st in daily solar radiation. Because the state receives more sun than any other state in the nation, solar energy will play a huge part as Arizona’s energy source. Even with some drawbacks in solar incentives policy, Arizona continues to grow as a leader in the solar industry.

Arizona Solar Facts

  • By the year 2025, all regulated utility companies in Arizona must get 15% of their power from renewable sources. In addition, the state is looking to pursue a goal of 80% of clean energy by 2050.
  • The average payback period for solar panels in Arizona is from 6.5 to 8.5 years.
  • The price of solar has dropped by 55% over the last 5 years, which yielded more installations and helped create over 7,000 jobs in the solar field.
  • Arizona’s solar investment is over $11 billion as of today.
  • Solar Power System Cost in Arizona
  • $1.54 per watt
  • $6,956.36 total
  • 5 years

Arizona Solar Information

The Cost of Solar Panels in Arizona

As of August 2019, the state’s average cost of solar panels per watt is $2.89/W. This makes a typical out-of-pocket price of installation of the 5kW solar panel system to range from $12,000 to $16,000. This price does not include Federal Tax Credit or any State incentives. Arizonians are expected to save anywhere from $38,000 to $52,000 over the course of 20 years of using solar panels.

Arizona Solar Rebates and Tax Credits

The Federal Investment Tax Credit – is the government program also known as Investment Tax Credit (ITC). It allows you to deduct 30 % of the total cost of the solar equipment and its installation on your federal taxes and has no limit on its value.

Arizona Solar State Credit - every person who installs solar panels on their property gets 25% credit to be used towards State income taxes. This credit caps at $1,000.

Property Tax Exemption - the residents of Arizona are exempt from the higher property taxes on the increased value of the house if it is due to solar system installation.

Arizona Solar Incentives

Net Metering Program – Net Metering is a program that allows you to provide your utility company with your extra solar power for the credit on your monthly bill. Arizona replaced Net Metering with Net Billing, which allows the crediting of all excess energy at a locked credit rate. The following utility companies offer Net Metering in Arizona.

  • APS
  • SRP
  • TEP

Duncan valley electric cooperative - is providing rebates for the purchase of renewable energy systems through its SunWatts program. Solar energy systems 10 kilowatts (kW) or less can receive an upfront rebate of $0.05 per watt, up to $500.

Mohave Electric’s SunWatts Renewable Energy Incentive Program - is giving incentives for residential and small commercial solar systems up to a maximum system size of 50 kW. The rebate is $0.05 per watt, up to $2,500. Leased systems are not eligible for incentives.

Pros and Cons of Buying Solar Panels in Arizona

Cons of Buying Solar Panels

  • The possible high initial cost

    When you decide to go solar, you not only have to purchase solar panels, you also have to pay for all the solar equipment and accessories, and the installation of the system. This can make your expenses rather high. However, with the availability of federal and state credit programs, local utilities incentives and rebates, the initial price can be significantly cut down. Plus, going solar will start saving you money on your electric bill from day one.
  • Need to have a large, open area for installation

    To install an average size solar panel system of 5kW you will need about 500 sq. feet of open space on your roof. That space has to be free of any shade from trees or other buildings for the PV system to work properly. Sometimes, this requirement becomes a problem for some homeowners. However, you can also install the solar panels on the ground, provided they do have direct access to sunlight.
  • Must be a property owner to install

    As of today, PV system installations are mostly available to homeowners with good credit and/or good income. The solar benefits are not yet available to renters, people with low-income, or people without a job.

Prons of Buying Solar Panels

  • Relatively short payback period

    The solar payback period measures how many years it takes for a new PV system to recover the initial cost of the investment. Lower solar costs, high electricity prices, or robust solar programs and incentives- all of these play role in a shorter payback period. Nationwide, the average solar payback period is just under 8 years. As of today, the typical payback period for Arizona ranges from six to eight years.
  • After the payback period, solar power is nearly free

    Unless the utility company charges you a connection fee, once your solar energy system is entirely paid off, the electricity it generates comes at no cost to you.
  • Great savings on a monthly electric bill

    When you install a solar energy system on your home, you start to generate your own electricity. It means that you become less dependent on your local utility company and their utility rates, which are highly influenced by inflation. Even though you are paying for your PV system, you will be saving a great deal on the monthly electric bill.
  • Helping the environment since solar energy is clean, sustainable, and renewable

    Besides saving you money every month, solar energy is a truly clean, renewable, and sustainable power source. Sunlight is abundant and is ready to be harvested without any harm to the environment. What's more, installing an average-size solar system will mean saving 208 trees every year. It is proven that using solar energy instead of fossil fuels will decrease our carbon footprint by reducing air and water pollution.
  • Support from the government and the state

    The Federal Investment Tax Credit and Arizona Solar Credit offer significant savings to Arizona residents when buying a solar system. Thanks to this financial help, people see the price dropped by thousands of dollars on their solar equipment.
  • Very low maintenance

    Solar panels do not have any moving parts so essentially, there is no wear and tear with their usage. Thanks to this, solar panels are completely silent when working. The only maintenance that they need is the occasional cleaning to keep that free of dirt and debris.
  • Excellent warranty protection

    Today, most of the solar panels come with two types of warranties: performance guarantee and extended product warranty. The 25-year-long performance guarantee ensures efficient energy production for at least 25 years. Extended warranties guarantee to repair defective equipment, breakage or any deficit in the performance that might arise.
  • Increase in the property value

    Recently, studies by multiple organizations showed that installing solar panels on the roof of your house definitely adds value to the property. On average, adding a solar energy system will raise your house value by 4.1%. Furthermore, not only houses with PV installations sell at higher prices but they also sell faster than the houses without solar systems.

Is It Worth Going Solar in Arizona?

The main advantage of switching to solar in Arizona is the plentiful sunlight that the state gets, the most sun in all of the USA. With so much sun, you will need less amount of solar panels to break free from your electric bill. Arizona may lack some of the state incentives and utility rebate programs but, nevertheless, the state remains a top state for solar installations.

Tell us how much you are spending on electricity and we’ll calcalute how much you can save if you go solar
According to Arizona Public Service Co, we received the cost of kWH in your area and calculated energy consumption based on an average electricity bill for 3 months.
I am claiming the 26% Federal Tax Credit (ends 2022) i

When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.

To be eligible to claim this credit, you must owe federal taxes.

System size

  • Mini
  • Small
  • Medium
  • Large
We recommended
4.53 kW medium system size
Provides up to 80% of electricity consumption
$1.54 per watt
Average system cost
  • image rec 3
    13 x 350 watt
    solar panels
  • +
  • image rec 3
    13 x 300 watt
  • +
  • image rec 3
    2 x 3 800 watt
$91.86/ month
Estimated savings on your average quarterly bill
  • $6,956.36
    Estimated system cost
    Excludes 26% Federal Tax Credit.
    This price does not include the installation cost.
  • 5 years
    Average system payback period
  • $52,034.91
    Estimated utility savings

Example of 4 kW system calculation in Minnesota for electricity bill $100

  • 12 ¢ /kWh
    The cost of electricity today in Arizona Public Service Co
  • 25 ¢ /kWh
    If you don't get solar. The forecast average utility price over the next 25 years
  • 5 ¢ /kWh
    levelized cost of solar energy

Relevant product for your system

Entry-level solar panels x 13
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Entry-level microinverter x 13
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Entry-level inverter x 2
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Panasonic 340W Solar Panel 96 cell VBHN340SA17 Monocrystalline White - A1 Solar Store
Cell number 96 cell
DC/Charger Volt Compatible 12v, 24v, 48v
Price per Watt $1.07
Rated Power Output 340 W
Voltage (VOC) 71.3V
Cell Type Monocrystalline
Pickup at 2 locations or US shipping
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Panasonic HIT 330W Solar Panel 96 cell VBHN330SA17 Monocrystalline Black - A1 Solar Store
Cell number 96 cell
DC/Charger Volt Compatible 12v, 24v, 48v
Price per Watt $1.03
Rated Power Output 330 W
Voltage (VOC) 69.7V
Cell Type Monocrystalline
Pickup at 2 locations or US shipping
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Trina 330W Solar Panel 120 cell TRI-TSM-330DD06M-BK Monocrystalline Black - A1 Solar Store
Cell number 120 cell
DC/Charger Volt Compatible 12v, 24v, 48v
Price per Watt $0.56
Rated Power Output 330 W
Voltage (VOC) 40.6V
Cell Type Monocrystalline
Pickup at 4 locations or US shipping
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Q CELLS 350W Solar Panel 120 cells Q.PEAK DUO G6+ - A1 Solar Store 16% Off
Cell number 120 cell
DC/Charger Volt Compatible 12v, 24v, 48v
Price per Watt $0.6
Rated Power Output 350 W
Voltage (VOC) 40.73V
Cell Type Monocrystalline
Pickup at 2 locations or US shipping