Solar Panel Cost in Phoenix, AZ
Updated 2026 guide to solar panel prices, savings, and payback period in Phoenix.
Estimated Solar Savings
Solar Panel System Costs in Phoenix, AZ
Below are estimated costs for different solar panel system sizes in Phoenix, including the 30% federal solar tax credit.
| System Size | Cost Before Incentives | Federal Tax Credit (30%) | Net Cost | Est. Annual Production |
|---|---|---|---|---|
| 4 kW | $10,600 | -$3,180 | $7,420 | 9,490 kWh |
| 6 kWMost Popular | $15,900 | -$4,770 | $11,130 | 14,235 kWh |
| 8 kW | $21,200 | -$6,360 | $14,840 | 18,980 kWh |
| 10 kW | $26,500 | -$7,950 | $18,550 | 23,725 kWh |
| 12 kW | $31,800 | -$9,540 | $22,260 | 28,470 kWh |
What Affects Solar Panel Cost in Phoenix?
The average cost of solar panels in Phoenix, AZ is approximately $265/watt before incentives. For a typical 6kW residential system, that means a total cost of about $15,900 before the federal tax credit.
After applying the 30% federal Investment Tax Credit (ITC), your net cost drops to approximately $11,130.Phoenix homeowners typically see a payback period of 6 years and save an estimated $42,000 over 25 years.
Factors that affect your cost in Phoenix:
- System size: Larger systems cost more but have a lower cost per watt
- Equipment quality: Premium panels and inverters cost more but offer better efficiency
- Roof complexity: Steep roofs, multiple levels, or shading can increase installation costs
- Local labor rates: Installation costs vary within the Phoenix metro area
- Local permits: Permitting costs and requirements vary by municipality in Phoenix
- Incentives: State and local programs can significantly reduce your out-of-pocket cost
Solar Incentives Available in Phoenix
Federal Solar Investment Tax Credit
30% Federal Tax Credit (ITC)
Arizona homeowners benefit from the 30% federal ITC, which is especially valuable given the state's high solar production potential.
State & Local Incentives
Arizona Residential Solar Tax Credit
Tax CreditArizona offers a state income tax credit for solar energy devices installed on residential property.
Solar Equipment Sales Tax Exemption
Sales TaxSolar energy equipment is exempt from state sales tax in Arizona, reducing the overall installation cost.
Property Tax Exemption for Solar
Property TaxThe added value of a solar installation is exempt from property tax assessment in Arizona.
APS Solar Communities Program
RebateArizona Public Service offers programs for residential solar customers including incentives for battery storage.
Net Metering
Arizona utilities offer net metering or net billing programs. Policies vary by utility, with APS and SRP having different rate structures for solar customers.
AvailableSRECs
Arizona does not have a traditional SREC market, but the state's Renewable Energy Standard requires utilities to source a portion of energy from distributed generation.
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Solar Panel Cost FAQ - Phoenix, AZ
The average cost of solar panels in Phoenix is approximately $2.65 per watt before incentives. A typical 6kW residential system costs about $15,900 before the 30% federal tax credit, bringing the net cost to around $11,130.
The typical payback period for solar panels in Phoenix is approximately 6 years. After that, you'll enjoy free electricity for the remaining 15-20+ years of your system's life, saving an estimated $42,000 over 25 years.
Phoenix homeowners can take advantage of the 30% federal solar tax credit, which reduces your system cost by 30%. Arizona also offers net metering, and various state-level incentive programs. Check our incentives page for the complete list.
Phoenix homeowners can save an estimated $42,000 over 25 years by going solar. Actual savings depend on your electricity usage, system size, roof orientation, and available incentives. With electricity rates averaging $0.13/kWh in Arizona, solar provides significant long-term savings.
Solar Costs in Other Arizona Cities
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