Best Solar Companies in Tempe, AZ

A typical solar panel installation costs anywhere from $7,560 to $21,600 in Arizona. Prices in Tempe are comparable, ranging from $7,805 to $22,300 on average.

Installers usually price systems according to their wattage. “Cost per watt” is like the “price per square foot” when you buy a house. It helps you compare the value of solar energy systems in different sizes. In Tempe, the average cost per watt is $2.23.

The average Arizona household needs a system with a capacity of 9.2 kW to fully offset their electricity costs. Depending on your household energy use, you might need a smaller or larger one.

Average total solar installation costs by system size in Tempe

Tempe's desert climate, with very hot summers, makes solar a valuable investment for long-term energy savings. 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.

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.

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

But it doesn’t work out for everyone in the Grand Canyon State. Most areas average 7 to 8 peak sun hours each day. However, lots of shading could make your solar system less efficient.

Use NREL’s PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is another free solar savings estimator. As long as your house is a good candidate for solar, it’s at least worth considering.

» 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 again. 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: In Arizona, solar PV installers need a general contractor's license as well as an electrician's license. You can verify these 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: Research the company's track record and 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. Companies with plenty of experience installing solar panels in Tempe are better at navigating the local regulations, permits and available financial incentives.
• 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? 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 solar benefits without owning the equipment. Eligible homeowners can borrow against home equity to finance a solar panel system.

• 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 the highest average solar potential of any state and relatively low rooftop solar installation costs. It also has generally solar-friendly policies and a personal tax exemption to help defray the costs of installing rooftop solar systems.

» BEST STATES FOR SOLAR: Arizona ranked fourth in 2024

You can combine the following solar incentives in Arizona with the federal solar tax credit.

• State tax credit: You can claim 25% of your total solar system costs, up to $1,000, on your 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 $5,000 per device).
• Property tax exemption: Solar equipment adds no taxable value for property tax assessment. In other words, your property taxes won’t increase just because solar panels increase your home value.

» GREENEST STATES: Arizona ranked 42nd in 2024

Federal tax credit

You should also use the federal solar investment tax credit (ITC). It 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.