Key insights
Depending on the size of your system and what financial incentives you qualify for, a typical residential solar panel installation costs $10,686 to $21,372 in Arizona.
Jump to insightOn average, Arizona homeowners with solar panels avoid $42,844 in total utility costs over 25 years.
Jump to insightSeveral factors determine if solar panels are worth it for you, including initial installation costs, the orientation and shading of your roof, and how long you plan to stay in your home.
Jump to insight6 factors to consider before going solar in Arizona
For a lot of homeowners, solar panels are worth it as long as their cost savings over time outweigh the initial investment. Others are happy to go solar for the environmental benefits alone. For many, like Maria in Surprise, it’s really both. “I decided to go solar not only to help the environment but also to stop (worrying) about how much electricity I am using, especially in the summer months,” she told us.
But it doesn’t work out for everyone. Here’s what to consider before making the switch.
1. Solar panel installation costs
Average solar panel costs in Arizona are relatively low compared with other states. A typical residential solar panel system costs $14,980 in Arizona.
On the higher end, Patrick in Tucson said his system cost $36,000, and Simin in Scottsdale paid over $40,000 for a large solar panel system
Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. In Arizona, the average cost per watt is only $2.14.
Average solar panel costs by system size in Arizona
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Statewide | $10,686 | $12,823 | $14,961 | $17,098 | $19,235 | $21,372 |
| Phoenix | $10,333 | $12,399 | $14,466 | $16,532 | $18,599 | $20,665 |
| Tucson | $10,839 | $13,006 | $15,174 | $17,342 | $19,510 | $21,677 |
| Scottsdale | $10,241 | $12,289 | $14,337 | $16,385 | $18,433 | $20,482 |
NOTE: Adding a solar storage battery can add $7,000 to $18,000 to your total system costs.
2. Your energy consumption
A typical Arizona household needs a system with a capacity of 7 kW to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.
This information can be found on your utility bill. It will tell you what size and capacity your solar system needs. Once you know this, you can calculate your potential savings and the time it should take for your solar installation to pay for itself. In Arizona, solar panels usually pay for themselves within 11.66 years.
Solar panels also protect you from future energy cost increases. “Originally our electric was the same as going with solar. Not anymore,” Leon in Sun City West told us. “Good decision on our part as we no longer will receive price increases which we know would happen with electric bill.”
3. Arizona solar incentives
The 30% federal residential solar tax credit has expired, but Arizona still offers several ways to lower the cost of going solar:
State tax credit: Claim 25% of eligible solar costs, up to $1,000.
Sales tax exemption: Qualifying solar equipment is exempt from state sales tax.
Property tax exemption: Solar generally won’t increase your home’s taxable value.
Mohave Electric rebate: Eligible customers can get 5 cents per watt, up to $2,500. Battery rebates may also be available.
What to know about net metering in Arizona
Most new Arizona solar customers use net billing instead of traditional net metering. If your panels produce more electricity than you use, the extra power goes to the grid and earns a bill credit.
Credit rates vary by utility and are generally lower than the retail electricity rate. APS, TEP and SRP each use their own solar rates and plans.
Anecdotally, some APS customers who switched to solar have told us about high fees that add up quickly and connectivity delays. Unfortunately, depending on where you live, you might not have another option.
Pro tip
Because export credits can be low, a battery may help you save more by storing extra solar power for later use. However, batteries add thousands of dollars to the upfront cost.
» MORE: Solar incentives in Arizona
4. How long you plan to stay in your house
Buying solar equipment is expensive, and it about 11.66 years homeowners to break even in Arizona. If you sell your house and move before then, you might not fully realize the financial benefits of your solar panels.
One study found that, on average, houses with solar panels sell for 4.1% more. Let’s say you spend $25,000 putting solar panels on a house that costs $400,000. It might sell for $16,400 more in a few years.
But over 25 years, Arizona homeowners with solar panels avoid an average of $42,844 in utility costs.
In other words, don't get solar panels just because you want to sell your house soon. Instead, consider a home improvement project with a better return on investment, like remodeling the bathroom or kitchen.
5. How you pay
Solar loans and leases can help you go solar with little to no upfront cost.
Solar loans work like any other type of home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month.
Leasing solar panels lets you set up a system without the high upfront costs. Monthly payments usually range $150 to $250. Agreements last 20 to 25 years.
Monthly costs: solar payments vs. savings
Compare what you’d pay each month with solar to what you pay for electricity now. Ideally, your solar loan payment plus any remaining utility bill should be lower than your current electric bill.
» SOLAR PANELS: Lease vs. buy
6. The solar company you hire
People have had mixed experiences with Arizona solar companies. In the best-case scenario, it’s easy to make the switch, and you’re happy with the system’s performance. In the worst-case scenario, you end up paying thousands for midtier solar equipment from a company with poor customer service and no follow-up or support.
For instance, Michael in Clarkdale thought going solar would save on electric bills, but it hasn’t so far. During the setup, a power surge caused by improperly installed wiring led to the system being blown, which further delayed the operation of the solar system. He was understandably disappointed by a salesperson’s unfulfilled promises.
“I haven't heard from them in two weeks and my system still isn't running. And it's pretty expensive,” Michael told us.
That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision.
Pros and cons of solar panels in Arizona
It’s a common misconception that solar panels always completely eliminate your monthly power bill — this is not always the case. Still, you’ll likely be paying much less than you would for traditional utility bills.
Pros
- Long-term savings
- Better for the environment
- May increase home resale value
- Incentives
Cons
- Upfront costs
- Potential changes to compensation for extra power
Is my home a good candidate for solar panels?
In Arizona and elsewhere, going solar ends up being worth it for many homeowners as long as their home is a good candidate to support a solar panel installation. Here’s what to think about before you commit:
- How old are your appliances? The first step is to ensure that your electrical loads are as small as possible. For instance, if you have an older refrigerator or air conditioning unit, it’s smart to upgrade those before investing in solar panels.
- How much sunlight do you get? Solar panels need regular exposure to sunlight to produce the most energy possible. Arizona gets a ton of peak sun hours, but lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.
- What is the size and angle of your roof? Arizona (and the rest of the United States) is in the northern hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.
- What is the condition of your roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels.
Compare solar companies in Arizona
Read our guide to the best solar companies in Arizona for more information on comparing all your options and getting the best deal.
| Company | Customer rating | Professional installation | Payment options | Warranty | Year founded | |
|---|---|---|---|---|---|---|
 Sunrun | Learn More | 4.3 |  | Cash, loan, lease, PPA | 25 years | 2007 |
 Project Solar | Learn More | 3.7 | | Cash, loan | 25 years | 2020 |
 ShopSolar | Learn More | 4.5 |  | Cash, loan | Varies | 2018 |
 Tesla Energy | Learn More | 1.9 | | Cash, loan and lease | 10-25 years | 2015 |
Arizona solar FAQs
What are the benefits of going solar in Arizona?
Going solar has a few benefits in Arizona:
Cheaper energy bills: The average homeowner in Arizona uses a lot of power, which adds up to a lot of savings when you switch to solar. Going solar now means that your monthly energy expenses will be more predictable (and very often significantly lower). It also protects you from future energy cost increases.
Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.
Higher home resale value: Installing solar panels can increase a home's value. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.
More energy independence: Embracing solar paves the path toward true energy independence. It works especially well for people in areas susceptible to power outages.
What are the drawbacks of going solar in Arizona?
Going solar has a few drawbacks in Arizona:
Solar equipment is expensive: Solar panel prices typically start between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000.
Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage.
Could make your house harder to sell: Solar panels can make a home harder to sell if they’re leased or financed, since the buyer may have to take over the agreement. Some buyers may also worry about roof repairs, maintenance or whether the system will actually save them money.
Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy. Snow cover may also temporarily reduce efficiency until it's removed or melts off.
» MORE: Solar energy pros and cons
Do solar panels increase property taxes in Arizona?
No. Solar technology and devices are exempt from Arizona state property tax. For the purpose of property tax assessment, solar technology adds no taxable value. However, property owners must provide their county assessor with documentation of purchase and installation, along with costs.
How long does it take to install solar panels in Arizona?
Installation times depend on a range of factors, especially seasonality and supply chain issues. The actual installation might take only a day, but it takes time to design and plan, and you have to activate the system.
Anecdotally, Ron in Phoenix said it took “about 2.5 months from the time I signed the contract to the time I had power. That includes the time when the power company had to come out and check everything.” Another solar customer in Phoenix said it took four months to install the panels and 12 months to activate them.
How long do solar panels last in Arizona?
Most solar panels installed in Arizona are designed to last 25 to 30 years.
Is it cheaper if I install solar panels myself?
It’s potentially cheaper to install solar panels yourself. It’s also tricky and dangerous if you don’t know what you’re doing, especially for a large residential project.
» DIY solar panels: Pros and cons
How do I choose a solar installation company?
The best solar energy companies have a few things in common: great reviews, transparent contracts, reliable equipment and comprehensive warranties. When hiring a solar installer in Arizona, look for companies with years of experience in the state and good local reputations. Get multiple quotes from different solar companies to compare prices and services. Be cautious of companies that provide significantly lower quotes than others — this may indicate lower quality.
Like in any booming industry, some salespeople want to make a quick buck and might say anything to close a sale. It’s important to read your contract carefully, especially if you finance or lease a system.
» TIPS: Get the best solar quotes
Bottom Line: Is going solar in Arizona worth it for you?
We’ve talked to hundreds of Arizonans who have already gone through the solar panel installation process. It’s generally worth it if you like the idea of lowering your monthly utility bills, helping the environment and gaining more energy independence.
Depending on the size of your system and what financial incentives you qualify for, a typical residential solar panel installation costs $10,686 to $21,372 in Arizona. Over 25 years, Arizona homeowners with solar panels can save about $42,844 in total utility power costs.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
DSIRE, "Arizona Programs." Accessed Sept. 9, 2026.
EnergySage, “The cost of solar panels in Arizona.” Accessed Sept. 9, 2026.
Solar Energy Industries Association, "Arizona Solar." Accessed Sept. 9, 2026.
Tucson Electric Power, "What You Should Know About Residential Solar Systems." Accessed Sept. 9, 2026.
Federal Reserve Bank of St. Louis, “Average Price: Electricity per Kilowatt-Hour in Phoenix-Mesa-Scottsdale, AZ (CBSA).” Accessed Sept. 9, 2026.
SolarReviews, “How much do solar panels cost in Arizona?” Accessed Sept. 9, 2026.
Arizona Department of Revenue, “Credit for Solar Energy Devices.” Accessed Sept. 9, 2026.
Environmental Protection Agency, “Solar Power Purchase Agreements.” Accessed Sept. 9, 2026.
