Solar power in Phoenix, Arizona
APS offers a net metering program to their customers, which means it's easy for Phoenix homeowners to wipe out their electric bill with solar.
Arizona also offers a $1,000 state tax credit; when coupled with the federal ITC — worth 26% in 2020, or 22% in 2021 — this means that close to a third of costs are already covered.
Factor in the return from net metering, and the system pays for itself very quickly.
Net Metering Broken Down
APS provide net metering by tracking how much power you consume from the grid and how much excess solar is sent to the grid, the excess is credited at 1 for 1 with APS' retail power price. Solar produces far more in Arizona than in other states, which means net metering here is far more profitable
The average cost of installing residential solar panels in Phoenix,
Arizona in 2025 is
$2.67 per watt. The average system size
in the US is 6 kilowatts, which means the average price of a solar system
in Phoenix, AZ
is $13,350.
(after claiming 26% tax credit and other rebates)
The 26% federal solar tax credit explained
If you have a federal income tax liability, 26% of the cost of your solar system can be claimed as a deduction to your taxes. This incentive is claimed when you do your taxes. In order to receive the tax credit quicker it's best to do your taxes as soon as possible after installation.
What if my tax liability is less than 26% of my systems costThere is the option to claim this incentive over several years if your tax liability is less than 26% of the system cost.
How much will solar panels on my home save me?
The answer to this question depends on your electricity usage. Generally speaking the greater your power usage the greater the potential savings from installing solar.
The average monthly usage in Arizona is only 1061kWh per month however, you are most likely using a lot more than this since this average includes condos and small apartments.
The Phoenix solar panel savings calculator below will convert your monthly power spend into power usage (in kWh's) and then work out exactly how many solar panels you need to offset your usage, how much they will cost based on the prices of local solar companies and the amount you will save. Our Arizona solar savings calculator can do this because it contains a database of the electric rates charged by Arizona Public Service (APS ), City of Mesa, Salt River Project, Town of Wickenburg, USBIA-San Carlos Project, Ocotillo Water Conserv. Dist., Tohono OOdham Utility Auth, Electrical Dist No8 Maricopa, Harquahala Valley Pwr District, Tohono O'Odham Utility Authority
How much can solar panels save you in Phoenix
What does the cost of a real solar system look like?
Facts about installing a 12.02kW solar system in Phoenix, AZ
This system would offset 100% of your energy usage if your typical monthly bill is $250, however your situation may vary so try our Phoenix solar calculator to get a result tailored to you.
$20,608
Net cost of system
6 Years 1 Month
Average payback time
19,230 kWh
Annual power production
4¢/kWh
Levelized cost of solar energy
28¢/kWh
If you don't get solar
Cash flow graph based on cash purchase of this 12.02kW system
Life-time savings on this system over the next 25 years
$103,746
(Prices shown after repayments of capital)
101
Solar companies in Phoenix, AZ that provide pricing through the SolarEstimate marketplace.
Average total cost of solar panel installation in Phoenix
| System Size |
Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $6,371 | $6,881 |
| 4kw | $8,288 | $8,951 |
| 5kw | $10,101 | $10,909 |
| 6kw | $11,855 | $12,803 |
| 7kw | $13,468 | $14,545 |
| 8kw | $14,978 | $16,176 |
| 9kw | $16,450 | $17,766 |
| 10kw | $17,760 | $19,181 |
Find out what system size you need for your home
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 |
Find your local rebates and incentives
Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
