Arizona Solar Panels | 2022 Cost & Incentives | SaveOnEnergy

Arizona Solar Panels: Pricing and Incentives

How much do solar panels cost in Arizona?

home with solar panels on the roof
phone icon

Learn about the benefits of solar


Davel5957/E+/Getty images

Solar power in Arizona

Arizona is known for its sunny weather, so it probably doesn’t come as a surprise that the state ranks among the top in the nation, getting more than 8% of its electricity from solar power. Not only has it seen rapid growth over the past decade, but it’s expected to continue on that same trajectory.

If you live in Arizona, you could save money on energy by installing solar panels on your home. Keep reading to learn more about the costs and benefits of solar panels and whether they’re right for your home.

Arizona solar panel cost

The cost of solar panels in Arizona depends on factors such as the size, components, and configuration of your system, as well as your local labor and permitting costs. According to Lawrence Berkeley National Laboratory’s Tracking the Sun report, in Arizona solar panel system price per watt ranges between $2.88 and $4.57 per watt, with system sizes ranging from 5.8-kW to 11.4-kW, resulting in a system cost range between $16,613 and $52,043. The Arizona median solar panel system price per watt is $3.76, and median system size is 8.2kW, resulting in a $31,046 median system cost.

The good news is that your solar panels can also save you a lot of money. Between your energy savings and other financial incentives, you can expect to break even on your solar panels within an average of 6-9 years.

Price Per Watt System Size (kW) Cost
High $4.57 11.4 kW $52,043
Median $3.76 8.2 kW $31,046
Low $2.88 5.8 kW $16,613

Get an exact quote from our solar advisors

The SaveOnEnergy marketplace helps you search, compare, sign up and save on the right energy fit for your home — all for free. If you’re interested in solar, answer a few questions to get an exact price quote from our solar advisors.

1. Complete the form below
2. Schedule an appointment with a solar advisor
3. Get an exact price quote for solar panels for your home

Arizona solar incentives or rebates

There’s no doubt that solar panels are a major financial investment. The good news is that the federal government and many state and local governments have incentives in place to make it more affordable and more attractive for homeowners.

First, the federal government offers a solar tax credit to help you save on your solar panel purchase. The tax credit is 26% in 2022, 22% in 2023, and will disappear in 2024 if Congress doesn’t renew it.

Arizona also offers a 25% tax credit on solar panel purchases, up to $1,000 in the year you install your solar panels. Additionally, the state offers a sales tax and property tax exemption on solar panels, meaning you won’t pay additional taxes because of your solar panel purchase.

Why choose Arizona solar power?

There are several advantages to installing solar panels on your home, including reducing your energy costs, establishing energy independence, and reducing your home’s environmental footprint.

Lower energy costs

One of the most significant benefits of installing solar panels on your home is that you’ll save money on energy. Anytime your solar panels are powering your home, you aren’t paying for electricity from the traditional energy grid. You’ll also increase your home’s resale value, which could be additional money in your pocket.

Establish energy independence

When you’re energy independent, you’re not reliant on the traditional electricity grid to power your home. This comes with plenty of benefits. First, because you’re using your own solar energy to power your home, you don’t have to worry about power outages if you have a solar battery to store your excess energy. You’re also less vulnerable to price hikes when demand on the grid is high.

Go green

Traditional electricity generation can be harmful to the environment by emitting greenhouse gasses that contribute to climate change. However, solar power is a renewable energy source. As a result, installing solar panels can reduce your home’s carbon footprint.

Want to learn more about solar energy

Here at SaveOnEnergy, we’re your guide to everything solar energy, from checking your availability and discussing your home’s needs to getting you customized options to go solar with ease. Want to talk with a human? Call our dedicated solar advisors to discuss your solar energy options. Give us a call at 866-623-7782.

Should I buy or lease my solar panels?

When you’re installing solar panels on your home, you can choose to either buy or lease your panels. While both options have some advantages, buying will save you more money over the long run. First, you’ll be eligible for both the state and federal tax credits. You’ll also have more long-term energy savings and can expect to see your home’s resale value increase by $15,000.

While leasing solar panels may not be quite as cost-effective, it’s still a great option for many people. First, leasing solar panels is more affordable, as it doesn’t have a large upfront cost. Additionally, leasing is a great option for those who rent their homes. Overall, solar panel leasing makes solar power more accessible.

Another thing that has made solar power more accessible is community solar projects. These programs allow participants to share the solar power that’s produced by the project. They don’t have the large upfront cost required to buy solar panels, nor do they actually have to install solar panels on their homes, meaning even those living in apartments can join in.

Arizona solar panel companies

As green energy generation — specifically solar energy — becomes more prevalent, so do companies that offer those services. There are several Arizona solar panel companies that can customize and install a residential solar system for your home. Learn more about solar panel installers in Arizona using the resources on this page. After learning about the ins and outs of the solar industry, finding an Arizona solar company is the next step.

The history of solar power in Arizona

Solar power in Arizona dates back to 2000 when the state created both its Renewable Energy Standard and its solar sales tax exemption. Those policies made it easier and more affordable for homeowners to invest in solar power. Since then, the state has continued to make progress in solar power installations and production.

Today, Arizona ranks 5th in the nation for solar energy generation. The past decade has seen huge increases in residential, commercial, and utility solar installations. Solar power has also played an important role in the state’s economy. There are more than 300 solar companies that create more than 7,000 jobs.

Important solar factors to consider

Solar panels can provide major energy savings and help the environment, but there are a few things to consider before you install them on your home.

  • According to the Department of Energy, solar power is best suited to south-facing roofs with slopes of 15 to 40 degrees. You should also consider the age and condition of your roof and when it will need to be replaced.
  • You’ll get the most bang for your buck with your solar panels if your home gets a lot of sunshine. This likely isn’t a problem for Arizona homeowners, since the sun shines often there.
  • If you have a homeowners association, you may face certain restrictions around the use of solar panels. You may be limited in the size of the system you can install, or may need approval before installing your panels.

Solar power FAQs

How much would solar cost in Arizona? Expand / Collapse Toggle

Residential solar panel systems generally cost between $15,000 and $25,000. Your actual costs will depend on several factors, including the size of your system and your local labor and permitting costs.

Is solar power a good investment in Arizona? Expand / Collapse Toggle

Solar panels can be an excellent investment, helping you to save money on energy and increasing your home’s resale value. Because Arizona gets lots of sunshine, solar panels are often a good investment. However, it also depends on your average energy usage.

How much could I save by investing in solar? Expand / Collapse Toggle

The amount you could save on energy depends on your current energy usage and how much solar power your panels produce. Arizona residents pay an average of $142 per month for electricity. As a result, the average Arizona resident could expect to save around $1,091 per year.

Where can I find a good solar panel installer in Arizona? Expand / Collapse Toggle

If you’re looking for a solar panel installer in your area, SaveOnEnergy can help. Enter your information on the screen and we’ll connect you with a trusted solar installer near you.

How does solar power help the environment? Expand / Collapse Toggle

Solar is a renewable resource, and the use of solar panels doesn’t emit greenhouse gasses in the same way that traditional electricity generation does.

Shop by city