Solar Installers in Arizona
Compare top-rated solar companies in Arizona. Average cost: $2.61/W · 6.5 peak sun hours · 15.32¢/kWh electricity rate.
Get Free Arizona Solar Quote →Solar Energy in Arizona: Complete Guide
Arizona is one of the best states in the nation for residential solar energy. With an average electricity rate of 15.32 cents per kilowatt-hour and 6.5 peak sun hours per day, homeowners across Arizona can generate significant energy savings by going solar. The average 8kW solar system in Arizona costs $20,880 before incentives and $14,616 after the 30% federal tax credit.
An 8kW system in Arizona produces approximately 18,980 kWh per year — enough to offset most or all of a typical household's electricity consumption. At current electricity rates, that translates to annual savings of approximately $2,908, with a payback period of around 8 years.
Arizona's net metering policy is classified as reduced rate, which means homeowners receive credit at a rate below retail for excess energy, but solar remains highly economical due to direct consumption savings. The state has a Renewable Portfolio Standard requiring 15% renewable energy, which supports continued solar growth.
Arizona Solar Cost Breakdown
| System Size | Before Incentives | After 30% ITC |
|---|---|---|
| 5 kW | $13,050 | $9,135 |
| 8 kW | $20,880 | $14,616 |
| 12 kW | $31,320 | $21,924 |
Arizona Solar Incentives
Arizona offers a personal income tax credit of 25% of the cost of a solar energy device, up to $1,000. While the cap is modest, it stacks with the federal ITC for additional savings.
Available to all Arizona homeowners through 2032. For a $20,880 system, this means a $6,264 tax credit.
Arizona exempts solar installations from property tax assessments, meaning your home value increases without raising your property taxes. Over a 25-year period, the typical Arizona homeowner saves $58,077 with solar — making it one of the best long-term investments available for your home.
Utilities in Arizona
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Arizona Solar FAQ
How much do solar panels cost in Arizona?▼
The average cost of solar panels in Arizona is $2.61 per watt before incentives. For a typical 8kW system, that's $20,880 before the 30% federal tax credit, or $14,616 after. Actual costs vary based on your roof, equipment choice, and installer.
How much can I save with solar in Arizona?▼
Arizona homeowners with an 8kW solar system can save an estimated $58,077 over 25 years. With an average electricity rate of 15.32¢/kWh and 6.5 peak sun hours per day, solar is a strong investment in Arizona. The average payback period is 8 years.
Does Arizona have net metering?▼
Arizona offers reduced rate net metering. You receive credits at a reduced rate for excess solar energy, which still provides meaningful savings but at a lower rate than full retail.
What solar incentives are available in Arizona?▼
Arizona homeowners can take advantage of the 30% federal solar Investment Tax Credit (ITC) through 2032. Additionally, Arizona offers a state tax credit of 25% up to $1,000. Solar installations are exempt from property tax increases.
How many peak sun hours does Arizona get?▼
Arizona averages 6.5 peak sun hours per day annually. This means an 8kW solar system in Arizona would produce approximately 18,980 kWh per year. Peak sun hours vary by season and specific location within the state.
Is solar worth it in Arizona?▼
Yes, solar is worth it for most homeowners in Arizona. With a 8-year average payback period and 25+ year panel lifespan, you'll enjoy 17+ years of essentially free electricity after your system pays for itself. The combination of 15.32¢/kWh electricity rates, 6.5 peak sun hours, and available incentives makes Arizona a great state for solar.
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Quick Arizona Solar Facts
- ☀️ Peak Sun Hours: 6.5h/day
- 💡 Electricity Rate: 15.32¢/kWh
- 💰 Cost per Watt: $2.61
- 📊 Net Metering: Reduced Rate
- 🔋 Payback Period: 8 years
- 🌱 RPS Goal: 15%
- 🏠 Property Tax: Exempt