Solar Panel Cost in Arizona (2022 Local Savings Guide)
In this EcoWatch guide on the cost of solar panels in Arizona, you’ll learn:
- What the average cost of going solar in Arizona is
- How system sizes affect solar panel installation costs in Arizona
- How Arizonans can save money when going solar
- Which local installation companies have the best prices
This guide has helped thousands of Arizona homeowners save time and money when going solar by teaching them exactly what affects installation costs in the Grand Canyon State. Let’s get started!
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Anyone who has spent time in the southwestern U.S., particularly in the deserts of Arizona, would find it no surprise that the region has some of the best natural solar resources in the country. But all the sunshine in the world won’t mean anything if the cost of residential solar panels in Arizona keeps renewable energy out of reach for homeowners across the Grand Canyon State.
From reduced energy bills to shrunken carbon footprints, there are many benefits of going solar. Regardless, for most homeowners, making the switch comes down to one key question: How much do solar panels cost in Arizona?
Watch Below: See How the State of Arizona Is Preparing Its Energy Infrastructure For An Expected Increase In Population
How Much Do Solar Panels Cost in Arizona?
Solar panel costs in Arizona are about on par with the U.S average.
Local factors and supply limitations don’t hamper Arizona installations or pull prices in either direction. Based on market-based research and data from top solar companies, we’ve found that the average cost of solar panels in Arizona is $2.61 per watt (the national average is $2.66 per watt).
Of course, solar systems aren’t purchased one watt at a time, so what does that price look like in terms of actual installations? Using the state average, for a modestly sized 5-kilowatt (kW) system, the total system cost would be $13,050, but after the 30% federal solar tax credit is applied, out-of-pocket costs would be lowered to about $9,135.
For larger systems to be installed on homes, businesses, schools or other facilities, average solar power costs break down as follows:
|Size of Solar Panel System||Arizona Solar Panel Cost||Cost After 30% Federal Tax Credit|
The above table provides statewide average prices, but each home solar panel installation will have its own unique characteristics, so costs will vary in actuality. Some installations will be more straightforward (such as those on a roof that readily faces the sun) while others will be more complicated (such as an irregular-shaped roof or a ground-mounted system), so the actual price for a specific project is best estimated with an installer who can account for your individual needs.
What Determines the Cost of Solar Panels in Arizona?
The typical price range for solar panel systems in Arizona is between $17,383 and $28,971, with an average of $22,211 after the federal investment tax credit (ITC). There are a few things that influence your price, which is why there’s such a wide range.
We’ll discuss the most important of these below to help you understand what goes into your solar panel cost.
In large part, your solar equipment pricing will depend on the type of equipment you need and the panels you choose.
Arizona is the sunniest state in the country with certain areas receiving an incredible 300-plus sunny days per year.1 When you compare this to the national average of 205 sunny days, it’s easy to see why Arizona homeowners don’t need high-efficiency panels.
The panels that excel in low-sun conditions are often more costly than others, so the abundance of sunlight and the intensity of that sunlight in AZ mean a lower overall cost for solar equipment.
Arizona also doesn’t experience much extreme weather (aside from heat), so the need for solar batteries is relatively low.
In other states, more homeowners opt for battery systems to store energy through power outages, but batteries are somewhat of a rarity in Arizona due to the mild weather. Again, this brings the overall average cost of going solar down because batteries and other add-on equipment tend to raise your costs.
Solar Financing in Arizona
Although the cost of solar equipment in AZ is lower than in many other states, your system will still be expensive, and how you choose to pay for it can add to the cost.
Most residents choose between cash purchases and solar loans. A cash purchase comes with a very large up-front cost but saves you the most over time. A solar loan requires little or no money down up front, but you’ll end up paying more — and saving less — because of the interest charges.
Arizona doesn’t have legislation that allows or promotes Property Assessed Clean Energy (PACE) programs to make financing solar more accessible and affordable.
However, Arizona Public Service (APS) does have a program for low-income households and solar communities, through which it will install solar for free and credit your energy bill each month. The credit is minimal, but it’s a great way for low-income households to get behind the green energy movement without a massive up-front or long-term cost.
Arizona Solar Installation Company
The solar installer you choose for your system will play a role in your total equipment cost as well. Just as with any other contractor, each installer can charge different labor fees and prices for equipment. Choosing panels and equipment from one installer could yield a totally different price than the same equipment from another installer.
There are many solar installers to choose from in AZ, and it’s important that you assess them based on value and not cost alone.
For example, SunPower, one of the most prominent national solar installers operating in Arizona, only installs Maxeon panels. These are some of the most expensive panels on the market, but they also provide the best efficiency, durability and warranty.
Sun Valley Solar Solutions and Elevation Solar, two other installers, offer other, less costly brands of equipment: SunPower and Tesla, and REC, Tesla and SolarEdge, respectively. These brands might be less expensive, but they’re also not as efficient or as well protected by warranties as the Maxeon panels, so the lower cost also means a slightly lower quality.
All of these brands should suit you well, but it’s important to choose panels based on value, cost and budget to ensure you get the best ones for your home.
Additional Considerations and Costs in Arizona
In addition to the major cost factors outlined above, there are some other considerations to take into account before you commit to an installer or a panel brand. We’ll discuss these below.
- Permits: Building permits are required for all solar system installations in Arizona. Your solar company will typically handle permitting for you, and you’ll just see the cost of the permit on your final itemization.
- Licenses: Arizona mandates that all solar installers be registered with the state as certified electricians. Always check to make sure your installer is properly licensed before committing to services. The R-11 and C-11 electrical licenses cover solar installations in Arizona.
- Warranties: Solar warranties are important because they protect what will probably be a home improvement project totaling many thousands of dollars. They usually cover installation, the equipment’s longevity, the equipment’s performance or some combination of the three.
- HOAs: Arizona has solid solar rights laws, so any homeowner can install solar panels and other solar equipment. Homeowners’ associations and other private entities cannot prohibit solar installation or interfere with panel use.
- Environmental zoning: Zoning regulations in Arizona can sometimes be problematic if you plan to install ground-mounted panels. However, most rooftop solar systems in Arizona shouldn’t be an issue with zoning.
Arizona Solar Panel Incentives
Public policy leaders have done a fair job of offering financial incentives that lower the cost of solar in Arizona. Although the state’s net metering program was phased out in 2016, there are still a number of tax credits and incentives available to homeowners. These include:
|Arizona Solar Incentive||How it Affects the Cost of Solar Panels in Arizona|
|Arizona Solar Tax Credit||This statewide program allows people who install solar on their homes to be credited 25% of total installation costs (up to $1,000) in the form of a personal income tax reduction.|
|Arizona Property and Sales Tax Exemptions||The 5.6% of sales tax that’s typically charged in Arizona is not applied to the purchase of solar equipment. |
Similarly, most solar upgrades will increase your home’s value, and that value is what is taxed via property taxes. Arizona, however, excludes the value increase from solar panels when evaluating how much property tax you must pay.
|Local Solar Incentives||On top of state incentives, numerous towns, cities and counties may have their own incentives to encourage citizens to engage with solar. Because these can vary greatly from one jurisdiction to the next, you should research your area (or call your local representatives) to find out more.|
|Federal Solar Tax Credit||Anyone in the U.S., including Arizona, is able to take advantage of the federal solar investment tax credit, or ITC. For any solar panel systems installed before the end of 2032, 30% of the cost of the system is available as an income tax credit.|
The Best Solar Panel Brands Available in Arizona
There are many solar brands to choose from in Arizona, each offering a different level of efficiency and coming at a unique price. The table below provides some information on the best solar panel brands available in AZ, plus relative pricing to help you decide which brand might be right for you and your budget.
|Solar Panel Brand||Average Cost Per Watt ($-$$$$$)|
Want to see how many panels your home needs and what the entire system will cost? Take a look at our preferred solar providers below to get a free quote from a reputable solar installation company in your area.
FAQ: Solar Panel Cost Arizona
At EcoWatch, we’re happy to get questions about the process and costs of getting rooftop solar from Arizona residents. Below are some of the questions we see most often, along with our responses. If you have specific questions that aren’t answered here, reach out to our team of solar experts at email@example.com.
The average payback period for solar panels is about eight years, and the average lifespan of a system is about 25 years. The payback period can be greater or shorter depending on the size of installation, tax incentives utilized and total cost paid by the customer.