Best Solar Companies in Peoria, AZ

A typical solar panel installation costs anywhere from $7,560 to $21,600 in Arizona. Prices in Peoria are comparable, ranging from $7,634 to $21,810 on average.

Installers usually price systems according to their wattage. Nationally, costs per watt range from $2.50 to $5. In Peoria, the average cost per watt is $2.18. The average Arizona household needs a system with a capacity of 9.2 kW to fully offset its electricity costs.

Average total solar installation costs by system size in Peoria

Solar panels are generally worth it in Arizona if you like the idea of lowering your monthly utility bills. The main drawback is the high upfront cost of purchasing and installing the panels and equipment.

We’ve talked to hundreds of Arizonans who have already gone through the solar panel installation process. With electricity costs continuing to rise, many find it’s financially worth it in the long run.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

The average homeowner in Peoria uses quite a bit of power, which adds up to a lot of savings when you switch to solar. Going solar now means your monthly energy expenses will be more predictable (and often significantly lower). Solar panels also protect you from future energy cost increases.

Assuming an upfront purchase, it takes about 6.9 years to break even (when your savings with solar panels make up for the cost). On average, Arizona homeowners with solar panels can avoid $65,970 in total utility costs over 25 years.

» STILL NOT SURE? Solar energy pros and cons

Potential roof problems

As a rule of thumb, if your roof is more than 10 years old, consider fixing it before going solar. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels. This is an expensive and frustrating process.

» SHOULD YOU: Replace your roof before going solar?

In our experience, the best solar companies in Arizona have a few things in common: lots of experience, reliable equipment and transparent contracts. Here are some hiring tips.

• Check certifications: Only state-qualified contractors are allowed to install, repair or alter residential solar devices. You can verify licenses through the Arizona Registrar of Contractors. We also recommend choosing an installer certified through the North American Board of Certified Energy Practitioners (NABCEP).
• Read reviews: Look out for red flags — complaints about misleading sales tactics, equipment failures, billing issues and lack of communication are common themes in negative solar company reviews.
• Ask questions: Do you need a solar storage battery, electric vehicle (EV) charger or critter guards? How does this affect overall pricing? What if your system needs maintenance in the future? Then, carefully review the proposal. If you don’t understand something about the payment terms, warranty or ongoing services, ask for clarification.

» TIPS: Get the best solar quotes

How can I pay for solar panels?

Getting solar panels is like buying a car. Most people pay cash, finance or lease. Similar to leasing, a power purchase agreement (PPA) lets you get the benefits of solar without actually owning the equipment. 

• Solar loans work like any other type of loan. They have relatively low fixed interest rates. Once you pay it off, you own your system outright.
• Solar leases are a good option if you have limited savings and don’t want to take on debt; you also aren’t responsible for system maintenance.

» SOLAR PANELS: Buy vs. lease

Going solar in Maricopa County

Arizona has generally solar-friendly policies and a personal tax exemption to help defray the costs of installing rooftop solar systems. Along with legalized power purchase agreements, those circumstances have all helped make it the state with the third-most rooftop solar capacity per capita in the country.

» BEST STATES FOR SOLAR: Arizona ranked fourth in 2024

Take advantage of available solar incentives in Arizona if you can.

• State tax credit: Homeowners in Arizona may claim 25% of their total solar system costs, up to $1,000, on their state taxes. Leased systems and PPAs are not eligible.
• Sales tax exemption: Arizona has a 100% state sales tax exemption on the purchase and installation of solar energy devices, up to a limit of $5,000 per device.
• Property tax exemption: Arizona state property tax exempts solar technology and devices. For property tax assessment, solar technology adds no taxable value. Property owners must provide their county assessor with documentation of purchase and installation, along with costs to qualify.

Federal tax credit

You can combine state incentives with the federal solar investment tax credit (ITC). The ITC reduces your federal tax liability by 30% of how much it costs to install solar panels.

The ITC drops to 26% in 2033 and then 22% in 2034.

The ITC is a credit, meaning it directly decreases the amount of taxes you owe. This is different from a deduction, which lowers your taxable income. For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If you owe $15,000 in taxes, the ITC reduces what you owe to $12,000.

Additional solar incentives

Check DSIRE for the most comprehensive source of information about solar incentives and policies in Arizona.