How much do solar panels cost in Arizona?
How much do solar panels cost in Arizona?
$2.20 – $2.80 average cost per watt
$9,200 – $19,600 total cost after tax credit (6- to 10-kW system)
Average cost of solar panels in Arizona
The average cost of solar panels in Arizona is $2.20 to $2.80 per watt, or $9,200 to $19,600 for a 6- to 10-kW solar system after the 30% federal tax credit. The total cost to install solar panels in Arizona depends on the type, brand, quality, installer, and any local rebates or incentives.
| System size | Average total cost | Average cost (after 30% tax credit)* |
|---|---|---|
| 3 kW | $6,600 – $8,400 | $4,600 – $5,900 |
| 4 kW | $8,800 – $11,200 | $6,200 – $7,800 |
| 5 kW | $11,000 – $14,000 | $7,700 – $9,800 |
| 6 kW | $13,200 – $16,800 | $9,200 – $11,800 |
| 7 kW | $15,400 – $19,600 | $10,800 – $13,700 |
| 8 kW | $17,600 – $22,400 | $12,300 – $15,700 |
| 9 kW | $19,800 – $25,200 | $13,900 – $17,600 |
| 10 kW | $22,000 – $28,000 | $15,400 – $19,600 |
*Local government and utility company incentives may also be available to further lower the cost.
Arizona is the sunniest state in the country, averaging more sunny days than anywhere else in the U.S.
Arizona ranks 3rd in the country for residential solar energy production and 5th for overall solar energy generation.
The cost per watt for solar panels in Arizona is lower than the average cost of solar panel installation in the United States, which currently ranges from $3.00 to $4.50 per watt.
What affects solar panel costs in Arizona?
While system size is the primary factor, several other factors influence the cost to install solar panels in Arizona:
Roof type & condition: The type and condition of your roof can impact installation costs. Some roofs may require additional work or specialized mounting systems, which can increase the overall expense.
Panel brand & quality: The brand and quality of solar panels can significantly affect the price. High-end brands often come with better warranties and higher efficiency ratings but at a premium cost.
Local laws: Permit requirements vary by location. Some utility companies also charge interconnection fees to connect your new solar system to the grid.
Maintenance: The average cost to clean solar panels is $150 to $500. However, your solar system installation contract may include routine cleaning and inspections.
Removal costs: When upgrading to more efficient solar panels, the cost to remove the old solar panels runs $200 to $500 per panel, or $4,000 to $10,000 on average for a 20-panel system.
If your roof is nearing the end of its lifespan, replace it before you install a new solar panel system. Otherwise, you'll need to pay to uninstall and reinstall the solar system when replacing the roof later, which not only adds to your costs but risks damaging the panels.
System components
Solar panel systems rely on several essential components. Beyond the solar panels themselves, you'll need mounting structures and an inverter to convert the generated energy into usable electricity. Investing in optional backup battery storage increases your initial cost but offers significant long-term savings.
Panels: Microcrystalline panels are the most sought-after due to their superior efficiency; however, they are also the priciest option. Polycrystalline panels offer a more affordable alternative but underperform compared to microcrystalline options. Thin film solar panels are the cheapest but have lower efficiency ratings.
Inverters: A solar inverter costs $1,500 to $3,000 with installation. The inverter is integral to your solar system's operation as it converts direct current (DC) electricity into alternating current (AC) electricity for household use.
Storage: Solar battery storage installation costs range from $5,600 to $11,200 after applying tax credits. While battery storage is not essential for solar panel installation, it maximizes savings and serves as a valuable power source during unexpected outages.
Solar tax credits & incentives
The table below details several ways to make solar energy more affordable in Arizona. Check with your local government and utility company for incentives specific to where you live. Consider speaking with a local financial advisor to maximize your investment and make sure you get the most out of the available incentives.
| Incentive type | Description |
|---|---|
| Residential Clean Energy Credit (formerly Solar Investment Tax Credit or ITC) |
|
| Energy Equipment Property Tax Exemption |
|
| Residential Solar and Wind Energy Systems Tax Credit |
|
| Solar and Wind Equipment Sales Tax Exemption |
|
| Net Billing |
|
| Local government & utility rebates & incentives |
|
If your budget allows for the installation, you'll typically save more with a solar battery than with net billing. When your solar panels aren't producing enough to cover your energy consumption, you use your own energy stores instead of the grid, getting the full retail value out of your system.
Buying vs. leasing
When considering solar panels, homeowners have several financing options:
Cash purchase: Buying solar panels outright provides the highest long-term savings and shortest payback period. While it requires a significant upfront investment, it allows homeowners to take full advantage of tax credits and incentives.
Solar loan: Solar loans allow homeowners to finance their solar installation, often with no money down. This option provides ownership benefits similar to a cash purchase but spreads the cost over time.
Solar lease: Leasing solar panels involves paying a monthly fee to use the system. While this option requires little to no upfront cost, it typically provides lower long-term savings compared to ownership.
Solar Power Purchase Agreement (SPPA): Under an SPPA, a third party owns and maintains the solar system on your property, and you purchase the electricity it produces at a set rate. Like leasing, this option involves no upfront costs but may offer lower long-term savings.
FAQs about solar panels in Arizona
Are solar panels worth it in Arizona?
Given Arizona's abundant sunshine and available incentives, solar panels are often a worthwhile investment for many homeowners. The exact value depends on your electricity rates, energy consumption, your roof's orientation and condition, and the specific terms and cost of your solar installation.
The payback period for Arizona homeowners ranges anywhere from 5 to 14 years. To calculate your estimated payback period, divide your upfront cost for solar panel installation—including any fees the utility charges you—by the amount you pay per year for electricity. Don't forget to factor in tax credits and incentives.
Do solar panels increase home value in Arizona?
Yes, solar panels typically increase home value in Arizona. Studies have shown that homes with solar energy systems sell for more than comparable homes without solar.
How long do solar panels last in Arizona?
Solar panels in Arizona generally last 25 to 30 years or more. Many manufacturers offer warranties of 25 years, guaranteeing a certain level of performance over that period.
Can an HOA deny solar panels in Arizona?
No, Arizona law prohibits HOAs from banning solar installations. However, HOAs may have certain guidelines regarding the placement and appearance of solar panels.
How many solar panels do I need?
The number of solar panels needed depends on your energy consumption, available roof space, and desired energy offset. A professional solar installer can help determine the optimal system size for your home.
Getting estimates from solar panel contractors in Arizona
When researching Arizona-licensed solar panel installers near you, be sure to:
Look for SRP Preferred Solar Installers, APS Qualified Technology Installers, members of the Solar Energy Industries Association (SEIA), and those certified through the North American Board of Energy Practitioners (NABCEP).
Verify they are bonded, insured, and licensed by the Arizona Registrar of Contractors (AZROC).
Confirm they have been in business under the same name and leadership for at least 5 years.
Check out their reviews on HomeGuide and Google.
Purchase solar panels directly from a company that has employees who install them, not from a sales-only dealer that uses subcontractors.
If you can't or don't want to pay fully up front, look for a company that offers "same as cash financing".
Always get a receipt for every payment, especially if you pay with cash.
Questions to ask an Arizona-licensed solar panel installer
Here are some questions to ask potential installers:
What is your experience with solar installations in Arizona?
Are you licensed and insured in Arizona?
Do you have an active solar license with the AZROC?
How long have you been in business in this area, and has the company changed hands during that time?
What type of solar panels and inverters do you recommend, and why?
Can you provide a detailed breakdown of costs?
What warranties do you offer regarding equipment and installation?
How long will the installation process take?
Are you familiar with all the available rebates and incentives for solar panel installation in this area?
Will you handle permits and paperwork for incentives?
What is your policy on system maintenance and repairs?
Can you provide references from previous Arizona customers?
How do you calculate the system size and energy production estimates?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.