Best Solar Companies in Tucson, AZ

A typical solar panel installation costs anywhere from $7,560 to $21,600 in Arizona. Prices in Tucson are comparable, ranging from $7,571 to $21,632 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 Tucson, the average cost per watt is $2.16.

 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 Tucson

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.

Like a lot of residents, Lorene in Tucson went solar for “sustainability, to save money, to get out from under the thumb of TEP (et al). Leasing, in particular, I found appealing due to my age and the cost per month I can rely on in retirement.” Similarly, Don in Tucson went solar to hedge against the rising prices of all goods and services.

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. Arizona averages 7 to 8 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — 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. 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.

• 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.
• Verify claims: One of the most common solar scams involves fake companies selling systems without any intention of really installing them. The other one is falsely claiming to be affiliated with state agencies.
• Check certifications: Verify that your contractor is qualified to install, repair or alter residential solar devices through the Arizona Registrar of Contractors. We also recommend choosing an installer certified through the North American Board of Certified Energy Practitioners (NABCEP).
• 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? 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.

• 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 Pima County

Think of going solar in terms of your monthly costs. Given rising energy costs in Tucson and elsewhere, financing solar panels makes sense as long as your monthly loan payment is less than what you would be paying the utility company anyway.

» 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: For property tax assessment, solar technology adds no taxable value. In other words, your property taxes won’t go up just because solar panels increase your home value.

Federal tax credit 

You should also take advantage of the federal solar investment tax credit (ITC). It reduces your federal tax liability by 30% of how much it costs to install solar panels. So, it’s only valuable if you owe federal income taxes in the first place.

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. It rolls over into the next tax year if you don’t use it all in the year your system becomes operational.

Additional solar incentives

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