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Average Solar Panel Costs in Arizona | 2023

Updated: Jul 10, 2023

Average Solar Panel Costs in Arizona

Imagine living in sun-drenched Arizona, where you're blessed with plenty of sunshine year-round. I mean, we have 300-day sunshine in a year. It's the perfect place to take advantage of solar power, and you're probably wondering about the costs involved. Let me enlighten you!

On average, Arizonans can expect to pay around $21,000 for a complete solar system after factoring in the federal solar investment tax credit (ITC). Keep in mind, this figure is post-ITC and doesn't include the local sales tax exemption. Without these sweet incentives, the price tag hovers around $30,000.

These estimates are based on an 11.5 kilowatt (kW) system, which is usually enough to offset utility costs in Arizona, and an average local price per watt of $2.64. But every home is unique, right? Determining the ideal system size for your specific needs can be a bit tricky.

No need to stress, though! A professional solar installer can swoop in and provide a free, customized quote to help you make the most informed decision. So, let's check some of the details.


Key Takeaways In This Article:

  • Solar panels in Arizona cost around $21,011 after federal tax credit

  • Arizona has higher-than-average energy needs, affecting system size and cost

  • Federal and state incentives, like the solar tax credit, reduce overall costs

  • Solar panel payback period in Arizona is around 11.7 years


What Is The Cost of Solar Panels in Arizona

Average Solar Panel Costs

Let's break down the costs of solar panels in Arizona.

First up, we have the cost per watt and per panel. The average cost per watt in Arizona sits around $2.64. That may seem like small change, but as you know, every penny counts! To calculate the total cost for your solar panels, just multiply that figure by the number of watts in your solar system. Easy peasy, right?

But wait, there's more! We can't forget the costs of the other components, like inverters, mounting hardware, and wiring. These additional expenses are essential to transform your solar dreams into reality.

But here's the catch: the total price for solar power systems in Arizona, after factoring in the federal credit, is around $21,011. This is notably higher than the national average of $16,758. Why, you ask? Well, Arizona has above-average energy needs, requiring larger systems to offset costs. Arizonans use an average of 1,048 kilowatt-hours (kWh) per month, compared to the U.S. average of 886 kWh. More energy usage means bigger system requirements, leading to higher solar conversion prices overall.

Now, for the million-dollar question: how does Arizona's solar panel pricing compare to the national average? Well, you can breathe a sigh of relief, because Arizona's solar panel costs are pretty much in line with the rest of the U.S. That means you won't be shelling out heaps more than other solar enthusiasts across the country.

Also picture this: The levelized cost of power from a typical solar system installed on an Arizona home over 25 years is a mere 4.5 cents/kWh. Now, compare that to the average cost of utility power over the same period, which sits at a whopping 22.4 cents/kWh if you don't go solar. See the difference? It's clear as day – solar power is a far more affordable way to keep your home running in the long run, right here in sunny Arizona.

The thing is, going solar in Arizona is a smart move for your wallet and the environment. But remember, these costs are just the tip of the iceberg. There's more to the solar story, including installation, incentives, and financing options, which we'll cover in the following sections.

Factors Affecting Solar Panel Costs

Several elements come into play when determining the price of your solar investment. Let's check them out.

  1. Efficiency and quality of panels: Not all solar panels are created equal. Higher efficiency and quality panels will usually come with a heftier price tag, but they'll also help you generate more power in less space. Sometimes, it's worth investing a little extra upfront for long-term savings.

  2. Size of the system: Bigger systems mean more panels, which translates to higher costs. The size of your solar system will depend on your energy needs, which are often higher in Arizona due to its sun-soaked climate. Remember, though, that a larger system can lead to more significant savings on your utility bills.

  3. Solar panel installation price: The cost of installation can vary depending on your location, the complexity of the project, and the company you choose. It's essential to shop around and compare quotes from different solar installers to find the best fit for your budget and needs.

  4. Roof type and complexity: Your roof's material, pitch, and layout can impact the cost of solar panel installation. For instance, a steep or complex roof may require additional labor and specialized equipment, increasing the overall price. Also, keep in mind that certain roof types, like tile or metal, may call for specific mounting hardware, which can add to the cost.

By understanding these factors, you'll be better equipped to make an informed decision about your solar investment in Arizona.

How do you calculate the payback period in Arizona?

solar savings, tax and incentives in arizona

It's simple: divide the total cost of your solar system by the annual savings on your electricity bill. For instance, if your system costs $21,000 and you save $1,800 per year, your payback period would be around 11.7 years.

But wait, there's more! The ROI is another important factor to consider. Over the lifetime of your solar panels (usually 25-30 years), you'll see some serious savings. In our example, after the payback period, you'd continue to save $1,800 a year for the remaining years, potentially adding up to a whopping $27,000 or more in savings.

Going solar in Arizona means you can enjoy a relatively short payback period and a solid ROI, making it a smart investment for both your wallet and the planet.

How do The Federal and State Solar Incentives Work?

Did you know there are some fantastic federal and state incentives to help ease the burden of solar panel costs? Let's take a closer look at these sunny opportunities...

First stop: the Federal Solar Tax Credit 2023. This golden ticket can help reduce your solar system costs by a whopping 30%! But wait... are you eligible? Fear not, most homeowners can benefit from this generous tax credit, provided they own a solar system.

Now, let's head southwest… Arizona State Incentives. For starters, Arizona offers a state tax credit of up to 25% of your solar system's cost, maxing out at $1,000. On top of that, you'll enjoy a 100% property tax exemption for your solar equipment.

But that's not all. Arizona's utility companies are also here to lend a helping hand with net metering programs. These initiatives allow you to send any excess solar energy back to the grid, earning you credits that can be applied to future utility bills. It's like the gift that keeps on giving!

What then does it take to install these panels?

Did you know that you may need a permit to install solar panels in Arizona? But don't sweat it – your local solar company will be your guiding light, helping you navigate the process and ensure you meet all the requirements.

Now, let's talk timelines and costs. The installation process can vary in duration, but on average, it takes about a month or two from start to finish. Factors like permitting, weather, and roof complexity can affect the timeline. But hey, Rome wasn't built in a day, right?

As for the costs, several elements come into play. We're talking about the size of your solar system, the quality and efficiency of the panels, your roof's characteristics, and the installation company's fees. It's a bit of a juggling act, but with a little research and some competitive quotes like this, you'll find the perfect balance for your budget.

In a nutshell, the solar panel installation process in Arizona involves some paperwork, a bit of patience, and a keen eye for detail. But with the right support and a clear understanding of what's involved, you'll be harnessing the power of the sun in no time.


Can I buy solar panels directly in Arizona?

Yes, you can buy solar panels directly in Arizona. However, it's wise to consult a professional installer to ensure proper sizing, installation, and compliance with local regulations.

What are the best solar panel brands available in Arizona?

How much solar power do I need for my home in Arizona?

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