How Much Do Solar Panels Cost In Arizona?
As of April 2024, the average cost of solar panels is about $2.50 peer watt with average prices ranging from $2.36 to $2.64 per watt depending on the source. We provide a full breakdown below. Before tax credits and incentives, a 5 kW system is between $11,800 to $11,071, depending on the source. The price drops significantly, by about 30%, after applying the federal tax credit.
Average Solar Panels Cost In Arizona
After analyzing the data provided from Energy Sage, Forbes, Market Watch, This Old House, and Solar Reviews, here’s an average of the solar panel costs in Arizona:
Average System Cost Before Tax Credits (USD):
- 3 kW: $7,350
- 4 kW: $9,800
- 5 kW: $16,245
- 6 kW: $18,735
- 7 kW: $21,225
- 8 kW: $16,125
- 9 kW: $18,615
- 10 kW: $21,105
Average System Cost After Federal Tax Credit (USD):
- 3 kW: $5,145
- 4 kW: $6,860
- 5 kW: $10,871.5
- 6 kW: $12,614.5
- 7 kW: $14,357.5
- 8 kW: $10,787.5
- 9 kW: $12,530.5
- 10 kW: $14,273.5
Average Cost Per Watt Before Tax Credits (USD/Watt):
- 3 kW: $2.45
- 4 kW: $2.45
- 5 kW: $3.249
- 6 kW: $3.123
- 7 kW: $3.032
- 8 kW: $2.016
- 9 kW: $2.068
- 10 kW: $2.111
Average Cost Per Watt After Federal Tax Credit (USD/Watt):
- 3 kW: $1.715
- 4 kW: $1.715
- 5 kW: $2.174
- 6 kW: $2.102
- 7 kW: $2.051
- 8 kW: $1.348
- 9 kW: $1.392
- 10 kW: $1.427
Solar Panels Cost in Arizona (By Source)
We reviewed the top solar websites in Arizona to bring you accurate solar panel pricing estimates.
Energy Sage
Energy Sage says, As of April 2024, solar panels in Arizona cost around $11,800, or $2.36 for a 5 kW system. This is below the national average of $3.00 per watt. After claiming the 30% federal tax credit the price drops by 30% and even more after claiming the $1,000 Arizona state tax credit. Here are the prices you can expect to pay for solar panels in Arizona according to Energy Sage.
|
System Size
|
System Cost
|
System Cost (after ITC)
|
|---|---|---|
| 3 kW | $7,080 | $4,956 |
| 4 kW | $9,440 | $6,608 |
| 5 kW | $11,800 | $8,260 |
| 6 kW | $14,160 | $9,912 |
| 7 kW | $16,520 | $11,564 |
| 8 kW | $18,880 | $13,216 |
| 9 kW | $21,240 | $14,868 |
| 10 kW | $23,600 | $16,520 |
Forbes
According to Forbes, the price for solar panels in Arizona falls between $2.46 and $2.61 per watt, equating to $14,760 to $26,100 for a typical system size ranging from 6 kW to 10 kW. On average, you will pay between $2.54 per watt or $2,540 per kilowatt. This price does not include federal or state tax credits or incentives. After the federal tax credit, you can expect to pay about $1.78 per watt.
Market Watch
Market Watch states, the average cost of solar panels is about $2.53 per watt, below the national average of $2.85. For a 8 kW solar system you can expect to pay about $20, 240 before the federal solar tax credit is applied. After the tax credit, the amount reduces to $13,168.
| System Size | Average System Cost | System Cost After Tax Credits | Expected Annual Savings | Expected Payback Period* |
| 5 kW | $12,650 | $7,855 | $1,093 | 7.2 years |
| 6 kW | $15,180 | $9,626 | $1,312 | 7.3 years |
| 7 kW | $17,710 | $11,397 | $1,530 | 7.4 years |
| 8 kW | $20,240 | $13,168 | $1,749 | 7.5 years |
| 9 kW | $22,770 | $14,939 | $1,967 | 7.6 years |
| 10 kW | $25,300 | $16,710 | $2,186 | 7.6 years |
This Old House
This Old House says, the average price of solar panels in Arizona is around $2.61 per watt. Their website states the cost to install solar in Arizona is $4,500 more that the national average because the state has higher energy needs that most other states.
| Home Size | Solar Panel System Size (kilowatt) | Avg. Cost in Arizona |
|---|---|---|
| 1,500 square feet | 10 kW | $26,100 |
| 1,700 square feet | 11 kW | $28,710 |
| 1,900 square feet | 12 kW | $31, 320 |
| 2,100 square feet | 13 kW | $33,930 |
| 2,300 square feet | 14 kW | $36,540 |
| 2,500 square feet | 15 kW | $39,150 |
Solar Reviews
According to Solar Reviews, the cost of solar panels in AZ is about $2.64 per watt. A 6 kW solar system will cost you about $11,071 after claiming the 30% federal tax credit.
| System size* | Avg cost per watt |
Avg system cost (After tax credit) |
|---|---|---|
| 4kW | $2.93 | $8,198 |
| 5kW | $2.82 | $9,856 |
| 6kW | $2.64 | $11,071 |
| 7kW | $2.61 | $12,799 |
| 8kW | $2.66 | $14,874 |
| 9kW | $2.56 | $16,153 |
| 10kW | $2.54 | $17,752 |
Is Solar Worth It in Arizona?
Going solar in Arizona offers many benefits, making it a great option for homeowners and businesses alike. Here are some of the reasons why it’s worth going solar in Arizona:
- Significant Cost Savings: Arizona’s abundant sunshine means solar panels can generate a lot of electricity, significantly reducing or even eliminating your electricity bills. Over time, the savings on utility bills can offset the initial cost of solar panel installation.
- Federal and State Incentives: Homeowners in Arizona can take advantage of the federal solar Investment Tax Credit (ITC), which allows you to deduct a significant portion of your solar system’s cost from your federal taxes. Additionally, Arizona offers state-specific incentives, including tax credits and property tax exemptions, further reducing the cost of going solar.
- Increased Property Value: Solar installations can increase the value of your home. Studies have shown that homes with solar panels sell faster and at higher prices than homes without.
- Energy Independence: By generating your own electricity, you reduce dependence on the grid and protect yourself against rising energy costs. Solar panels can also be paired with battery storage systems to provide power during outages.
- Environmentally Friendly: Solar energy is clean, renewable, and sustainable. By switching to solar, you’re reducing your carbon footprint and contributing to a reduction in greenhouse gas emissions, helping to combat climate change.
- Abundant Sunshine: Arizona is one of the sunniest states in the U.S., offering excellent conditions for solar power generation. This makes solar systems especially efficient and effective in the state.
- Net Metering: Arizona’s net metering policies allow you to sell excess electricity generated by your solar panels back to the grid, earning credits that can offset costs even further.
- Support for Local Economy: Investing in solar energy supports the local economy by creating jobs in solar installation, maintenance, and manufacturing.
- Low Maintenance Costs: Solar panels are durable and require minimal maintenance, usually just occasional cleaning and inspections to ensure optimal performance.
- Long-Term Reliability and Performance: Solar panels typically come with a warranty of 25 years or more, ensuring long-term reliability and performance with little degradation in efficiency over time.
In summary, going solar in Arizona not only offers financial benefits and increases energy independence but also contributes to environmental sustainability and supports the local economy. With the state’s generous sunlight, incentives, and supportive policies, the transition to solar is a wise investment for Arizonans.
Solar panels are likely worth it in Arizona, given the state’s abundant sunshine and favorable policies. Arizona is the sunniest state in the country, with over 300 days of sunshine each year. The average payback period for solar panels in Arizona is 6–10 years.
According to EcoWatch, solar conversions in Arizona are generally worth the investment. Their website states you should consider the following factors to decide if solar is right you: Your home’s energy use, cost of going solar in Arizona, average payback period for solar panels, average buy-back rates, roofs exposure to the sun, and solar outlook in Arizona.
This Old House says, Solar systems are slightly more affordable in Arizona than in other areas of the US. However, the total system cost is higher due to Arizona’s high energy demand.
Todays Home Owner states, you should get as many solar quotes as you can before making a decision.
According to Alternative Energy, solar panels can be worth it in Arizona. Installing solar panels in Arizona can increase your home value by 2-3%, save you money on electricity, and more! Arizona has more sunny days than any other state and the federal government will take care of 30% of the cost.
Does Arizona Give a Tax Credit for Solar?
- Incentive Value: Up to $1,000
- Frequency: One-time tax credit
Arizona offers a solar tax credit of 25% of your installation costs, up to $1,000. Homeowners can apply for this personal income tax credit when they file their state income taxes.
According to AZ.GOV, Arizona law provides a solar energy credit for buying and installing a solar energy device at 25% (.25) of the cost, including installation, or $1,000, whichever is less. If another device is installed in a later year, the cumulative credit cannot exceed $1,000 for the same residence.
Do Solar Panels Save Money In Arizona?
Yes, solar panels can save homeowners more than $1,700 per year. Market Watch says your potential lifetime savings can exceed $42,500 if you purchase high-quality panels. The average homeowner can pay off their solar panels in around 11 years with energy savings. The average savings will amount to about $34,982 on electric bills over the remaining 13 years of system’s lifespan.
Contact the Solar Experts at Firefly Solar
If you’re looking for solar panel installation services in Arizona, Firefly Solar can help! We can provide accurate solar quotes anywhere in Arizona including Phoenix, Glendale, Peoria, Surprise, Scottsdale, and more.
