Arizona ranks #8 in America for savings from installing solar panels on your home

Solar power in Arizona

Last fact checked on January 23, 2020 by Catherine Lane

Arizona has some of the best potential for solar in the United States. The state receives more sun than any other area in the nation, meaning a solar system can produce about 180% more than what it does in places like New York.

Policy changes and the reeling back of incentives has caused a bit of a challenge for solar in the state. Regardless, the federal solar tax credit and state-level tax credits combined with amazing sun coverage make going solar in Arizona a terrific option.


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Solar power in Arizona

Arizona solar power facts


Average cost of a 5kw solar power system in 2020
Price shown before incentives

6 Years 1 Month

Average payback time


Average lifetime savings
Price shown after repayments of capital


levelized cost of solar energy


If you don't get solar
The forecast average utility price over the next 25 years


Annual power production

Cash flow graph based on cash purchase of a 12.02kW system

This 12.02kW system would offset 100% of your energy usage if your typical monthly bill in Arizona is $250, however your situation may vary so try our solar calculator to get a result tailored to you.

Solar companies in Arizona that provide pricing through the Solar-Estimate marketplace


Best solar offers currently available in Arizona

Solar calculator and quote comparison tool

Compare solar quotes from the top solar companies in Arizona

How much do solar panels cost in Arizona

$2.73 per watt

Cash purchased solar system
Before 26% solar tax credit

$3.12 per watt

Financed solar system
Before 26% solar tax credit

16.9¢ cents/kWh

Av. 15 year term, 2.5% price escalator

What are the pros and cons of buying solar panels for your home in Arizona

The advantages of installing solar panels include the federal tax credit and state tax credit. In addition to these incentives, Arizona receives the most sun in the US. This means that less panels are needed in order to completely wipe out your electric bill.

SolarPowerRocks provides a great breakdown of solar incentives and policy for each state within the US.

Disadvantages of installing solar panels in Arizona are the lack of state and utility solar incentives and the elimination of 1-for-1 net metering. However, the best time to switch to solar in Arizona is now - before the incentives that are in place run out.

Enter your details to calculate the potential costs and savings you can expect to receive from installing solar panels on your home.

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Best brands of solar panels

To find the best brands of solar panels you can use America's most trusted solar panel comparison and reviews website, SolarReviews.

However, reviews of solar panels can be a bit meaningless because most consumer owners have not had any issues and so while solar company reviews are very important when choosing solar installers they are of less use when choosing solar panels.

For more information to help you make an informed decision about this topic, I would recommend this article about buying solar panels.


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How much electricity will solar panels produce in Arizona

Solar panels produce different amounts of energy in different locations.

Around the Phoenix area solar panels installed on a south facing 23.5 degree pitch roof will typically produce:

1,752kWh per year per 1kw of peak DC (direct current) capacity

For more information about how your location, roof direction and roof tilt affects solar power production use the solar panels calculator and enter your zipcode below.


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I want to buy a solar panel kit and install it myself

What rebates, solar tax credits and other solar incentives are available in Arizona?

Solar energy credit

Arizona offers a great income tax credit for those installing solar devices. The credit is equal to 25% of the costs of the system, up to $1,000. If the amount you owe in income taxes is less than the amount of your credit, the excess credit can be carried over to the next year.



Tax exemptions

There are two tax exemption policies in place in Arizona: a sales tax exemption and a property tax exemption.

The solar equipment sales tax exemption states that sales tax will not be applied to qualified solar equipment. It also exempts sales tax from being applied to renewable energy credits (RECs).

Typically, a solar system would increase your property taxes. The energy equipment property tax exemption indicates that a solar system adds no value to the property for tax assessment purposes.



Net billing in Arizona

In 2016, Arizona replaced net metering with net billing, or a feed-in tariff. With net billing, customers will be credited at a rate for the excess energy they export to the grid. This is similar to net metering, except the credit a customer receives for exporting does not have to equal the retail rate of energy.

For example, Arizona Public Service Company (APS) provides an export credit to solar customers who export energy to the grid. This export credit is equal to $0.1045 for each kilowatt hour (kWh), which is less than their energy charge of $0.12393 per kWh on their premier choice plan. APS customers will receive the same export credit for 10 years. 

Arizona Solar Calculator

Regardless of what you want to know about the economics of installing solar panels for your home or business in Arizona we have a solar calculator that can show you exactly the information your require.



What you can find out about installing solar panels in Arizona using our full monthly solar calculator

This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:

If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Arizona solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.


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Solar calculator

Going solar in Arizona

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

The following programs are available:
Incentive Name Eligibility Type
Residential Renewable Energy Tax Credit Federal Personal Tax Credit
Residential Solar and Wind Energy Systems State Tax Credit State Personal Tax Credit
Solar and Wind Equipment Sales Tax Exemption State Sales Tax Incentive
Energy Equipment Property Tax Exemption State Property Tax Incentive
Net BIlling State Net Metering
Mohave Electric Cooperative - Renewable Energy Incentive Program Utility Rebate Program
Duncan Valley Electric Cooperative - SunWatts Rebate Program Utility Rebate Program
Find your local rebates and incentives

Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.