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Arizona Solar Panels: Costs and Installation Guide

Updated: Jul 12, 2023

Arizona solar panels

Key Takeaways In This Article:

  • Solar panel costs in Arizona average $2.61 per watt, with total system costs influenced by factors like sunlight exposure, household electrical use, panel type, system size, and panel quality.

  • Several factors influence solar installation costs, including labor, roof angle and type, license costs, and solar accessories.

  • You can save on your solar panel installation with federal and Arizona state tax credits.

  • While net-metering is no longer available in Arizona, backup batteries can help store excess power.


Two things: You are either noticing a strange rise in your electricity bill lately or you have seen it take foot already. For a fact, I can tell you that you are not in this alone. I mean, the U.S. Bureau of Labor Statistics confirms that energy costs have increased roughly 3% in Arizona over the last few years. Who knows what it could rise to in a few months from now?

This is why you shouldn’t sleep on what former Governor Janet Napolitano about Arizona being “the Persian Gulf of solar energy”. It is never a better time to switch to solar energy than now… I mean, not even when the heat is already starting to blaze hotter. God so good, the prices for solar are taking a drastic fall. This was reported by the Solar Energy Industries Association (SEIA) which said that the cost of solar energy equipment has dropped approximately 52%.

How Much Solar Energy Can I Get in Arizona?

The energy yield from your solar panels in Arizona is closely tied to the amount of sunlight your panels receive. With Arizona being one of the sunniest states in the U.S., a solar installation here is likely to produce more annual energy than a comparably sized system in a less sunny region, like say, the Northern part of the country.

However, more goes into the equation of your solar electricity production than just sunshine. Factors like the shade your panels might fall under and their angle of installation play crucial roles in determining your total energy output. These aspects are considered to provide an accurate prediction of your solar installation's long-term energy production. So, while the sunniest skies definitely help, it's the overall setup that ensures you harness the most solar power possible in Arizona.

Solar Panel Cost in Arizona

Alright, let's talk turkey... or should I say, let's talk solar panel cost in Arizona?

Now, you might be thinking, "What's the damage?" Well, here's the scoop... The average cost of solar panels in Arizona clocks in at a cool $2.61 per watt. That's actually a smidge lower than the national average of $2.66 per watt. Not too shabby, right?

But, hold your horses. There's a plot twist... The total cost of a solar system in Arizona tends to be roughly $4,500 more than the national average. Why? Well, it's all about energy needs. Arizona, with its hot summers, has higher energy demands than most states. Makes sense, right?

Let's break it down by size, shall we? For 1,500 square feet home, you'd need about a 10 kW system, which comes to about $26,100. 2,500 square feet home? That would need a 15 kW system, which runs you about $39,150. So yes, size does matter... in solar panels, at least.

Now, if you're thinking about smaller solar projects, like powering an RV or a shed, you're looking at the cost of individual panels and their efficiency. It's a bit like deciding between a full pie or a slice. The cost-benefit analysis changes depending on your needs.

Factors That Affect Solar Installation Costs

Let’s start with the labor. The cost of labor isn't one-size-fits-all, it varies based on project size and type. Remember, you're not just paying for the time it takes to install the panels, but also for the expertise of the folks doing the job.

Next, we got your roof angle and type. Some roofs are solar panel-ready, while others might need a little extra TLC, which can add to the costs. Think of it as preparing a canvas for a masterpiece... a solar masterpiece, that is!

Then, there are license costs. Different areas have different rules and regs when it comes to solar panel installation. So depending on where you live, this could affect the overall cost.

And lastly, don't forget about solar accessories. Want an EV charger? Backup solar batteries? A fancy tracking system? These goodies can boost your solar experience but will also bump up the cost.

So, how much will it cost to install solar panels on your house? Well, that's where the quote process comes in. When you get a quote, it'll consider all these factors to give you a customized cost.

How To Save on Your Solar Panel Installation

save money with solar

So you're thinking, "Solar sounds great, but what about the price tag?" Well, let me tell you... there's more than one way to save on your solar installation in sunny Arizona!

The first golden ticket is the federal solar tax credit. What if I told you Uncle Sam is willing to cover 30% of your installation costs? That's right! So, if your setup costs $26,100, you're looking at a whopping $7,830 in savings. But hurry, this rate drops to 26% in 2033, 22% in 2034, and vanishes entirely in 2035.

Now, let's talk about the Arizona solar energy tax credit. This one's a beauty too! It offers a tax credit equal to 25% of your system total, or $1,000, whichever is lower.

"But what about the extra energy my panels generate?" Great question! Since Arizona ended its net-metering program in 2016, your excess energy goes to your power company. But here's a tip: consider backup batteries. They store that precious sunshine for use when you need it most.

When selecting your solar setup, remember to balance quality with affordability. The cheapest panels won't save you money in the long run, and the most expensive ones aren't always the best. Don't be shy about exploring financing options, like solar loans, either. You can as well, spare yourself the stress by contacting a reputable solar expert like IntegrateSun around you.


What is the average cost of solar panels for a house in Arizona?

The average cost of solar panels in Arizona is $2.61 per watt, with the total cost of a solar system being roughly $4,500 more than the national average due to the state's higher energy needs.

How much does solar installation cost?

How much can I save with solar tax credits?

Are solar panels worth it in Arizona?

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