Solar Panel Cost Guide in Phoenix, AZ (2023 Update)
- Phoenix Solar Installation Cost: $9,336
- 25-Year Savings: $24,061
- Payback Period: 7.0 Years
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Updated May 04, 2023
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Average Cost of Solar Panels in Phoenix
See how much it might cost to install solar panels in Phoenix.
Currently, the national average cost of solar panels is $2.66 per watt. However, in Phoenix, the typical cost of solar panels is 2.61 per watt. The average solar panel system size in Phoenix is around 5.1 kilowatts, meaning a cost of about $9,336 for a solar installation, or $13,350 before the 30% federal solar tax credit is applied.
Keep in mind that the numbers above are only averages. The price you'll end up paying for solar may look quite different based on your household energy consumption, the type of equipment you want to get, your solar contractor and more. For many homeowners, the upfront cost of solar is worth paying. On average homeowners in Phoenix see about $25,000 in savings on utility bills over 20 years.
To see your potential ROI and connect with a local solar company, click the button below.
Solar savings over time in Phoenix
| Year | Return on Investment |
|---|---|
| 1 years | $-8,000 |
| 3 years | $-5,328 |
| 5 years | $-2,657 |
| 7 years | $15 |
| 9 years | $2,687 |
| 11 years | $5,359 |
| 13 years | $8,030 |
| 15 years | $10,702 |
| 17 years | $13,374 |
| 19 years | $16,046 |
| 21 years | $18,718 |
| 23 years | $21,389 |
| 25 years | $24,061 |
Top Solar Installers in Phoenix
When making the switch to solar, many homeowners opt to use a solar company since installing a solar system yourself can be a challenging project. Another benefit of going with a solar company is that they can help you optimize your return of investment by bringing down your future costs of repairs and replacements because of warranties and informing you of local incentives you can take advantage of.
If you're searching for a solar company in Phoenix, we've organized a list of our top suggestions here:
Best Warranty Coverage
Sunpro Solar
- Industry-leading warranty coverage
- Expansive service area
- Some reported communication issues
- No leases or PPAs
See all of the solar companies in Phoenix
Factors that Affect Solar Panel Costs in Phoenix
For many Phoenix homeowners, the decision to install solar panels rests on cost. However, the range of solar installation costs can be quite wide in Phoenix, with typical prices between $20,000 to $40,000. There are a number of factors that considerably influence the price you'll pay, which we'll go over below.
Solar Equipment
When it comes to estimating the cost of a solar energy system in Phoenix, one of the most crucial factors is the size of the system you need. Solar systems are sized by kilowatts (kW) and are chiefly based on your home's energy consumption, which you can determine by looking at past energy bills. Your overall cost can increase by about $2,610 for each additional kilowatt you need. There are a lot of different solar panel brands and the one you choose also affects the cost. Generally, the brands that offer higher efficiency tend to also be more expensive. In addition, the type of equipment you're looking to get can affect your total cost. If you just need panels, your system will be much less expensive than if you also need solar batteries or an electric vehicle charger.
Solar Financing Terms
For some homeowners, paying for a solar system out of pocket can be financially overwhelming. Solar loans are provided by most installers in Phoenix, which can lower, or in some cases totally eliminate, your upfront costs to make solar more accessible. However, the interest on solar loans also increases your all-in costs, so it's crucial to take that into consideration as well. You can always bring down the total you pay in interest and sometimes even your APR by putting more money down.
Solar Panel Installation Company
The last major cost factor you should keep in mind is the installer you choose. Given the massive popularity of green energy solutions in Phoenix, you'll have plenty of options to choose from, but each comes at varying price points for labor and equipment. The size of the company sometimes plays the most considerable role in your total costs. Larger national companies, like SunPro and Sunrun, often have lower prices due to access to more resources and bulk pricing. Smaller local companies might be more costly, but they can sometimes have better customer service and more customization options, and the occasional sale or discount can bring their pricing down to compete with bigger companies.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $2.71 | $11,400 | $27,778 | 7.3 years |
| 8 kW | $2.66 | $14,908 | $37,329 | 7.1 years |
| 10 kW | $2.61 | $18,270 | $47,027 | 7.0 years |
| 12 kW | $2.56 | $21,486 | $56,871 | 6.9 years |
| 14 kW | $2.51 | $24,555 | $66,861 | 6.7 years |
| 16 kW | $2.45 | $27,478 | $76,997 | 6.6 years |
| 18 kW | $2.40 | $30,255 | $87,280 | 6.4 years |
| 20 kW | $2.35 | $32,886 | $97,708 | 6.3 years |
How to Save on Solar Panels
The solar panel company you go with will influence not only your overall costs, but also the kinds of solar panel brands, warranties, and other equipment you have access to. When choosing a solar company, there are a few important things you should keep in mind, including:
- Solar Panel Brands: Each solar panel brand and model offers varying levels of quality, longevity and energy efficiency. They will come at different price points as well. The company you choose impacts which solar panel brands you have access to.
- Contract: Before you sign a contract with a solar company, make sure to look it over fully so you understand the terms. Also, ask questions if you're not certain about some of the terms, such as what to do if a component breaks or malfunctions and if there are any guarantees about energy production.
- Warranty: A quality company stands out from other companies by providing the gold standard warranty — a 25-year, all-inclusive warranty covering parts, labor and performance.
- Reputation: Solar installers that have great reviews from their customers and that have been operating for many years likely offer quality solar panel installation and expertise.
Best Warranty Coverage
Sunpro Solar
- Industry-leading warranty coverage
- Expansive service area
- Some reported communication issues
- No leases or PPAs
EcoWatch's Phoenix, AZ Solar Cost FAQs
How much does it cost to install solar panels in Phoenix?
This is a hard question to answer exactly, because the cost depends on many factors. Generally speaking, it costs about $13,050 for a 5-kW system and $26,100 for a 10-kW system after the ITC is applied. You can expect to pay more if you want additional solar equipment or more efficient panels, or if you have above-average energy usage. On the other hand, you can spend less if you opt for a smaller solar panel system or less efficient solar panels.
Can you get solar panels for free in Phoenix?
A solar panel system isn't free in Phoenix, but there are some options that can make getting them more feasible, such as leasing solar panels or getting a solar loan. There may also be local programs or incentives that can help lower the cost.
How much can I save on energy bills after switching to solar?
Solar panels can potentially eliminate your electricity bills depending on where you're located and how much sunlight your home gets. Even if it doesn't get rid of them completely, you can save a lot of money on your bills, about $1,305.94 per year.
How long do solar panels last in Phoenix?
Though the average lifespan of solar panels is 25 to 30 years, that doesn't mean they are completely unusable at that time. What this means is their energy production will have decreased significantly after that point. You can opt to replace them after having them for that long or you can continue to use them at a lower efficiency.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.
Company research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.