Solar Panel Cost Guide in Phoenix, AZ (2024 Update)

  • Phoenix Solar Installation Cost: $10,991
  • 25-Year Savings: $24,053
  • Payback Period: 8.2 Years

See cost of a solar system near you:

By EcoWatch Local Advisors

Data Analysis: James Savino

Ranking Methodology: Karsten Neumeister

Updated February 03, 2024

Why you can trust EcoWatch

We work with a panel of solar experts to create unbiased reviews that empower you to make the right choice for your home. No other site has covered renewables as long as us, which means we have more data and insider information than other sites. Our rankings are never affected by revenue or partnerships.

Average Cost of Solar Panels in Phoenix

Find out how much it might cost to go solar in Phoenix.

Although the national average of solar panels is $2.66 per watt, solar panels in Phoenix typically cost around 3.Because a 5.1-kW system is needed to cover the energy consumption of a typical home in Phoenix, the average price of going solar will be about $10,991 after claiming the federal solar tax credit of 0.

Keep in mind that the numbers above are only averages. The price you’ll pay for solar may look quite different based on your household energy use, the type of solar system you want to get, your solar contractor and more.Many homeowners find installing a solar panel system is a sound investment. The average homeowner in Phoenix can save about $25,000 on their electricity bills over 20 years.

For a personalized quote from a local solar installer that has been pre-vetted by the EcoWatch team, click the button below.

Solar savings over time in Phoenix

Year Return on Investment
1 years $-9,387
3 years $-6,179
5 years $-2,970
7 years $238
9 years $3,446
11 years $6,655
13 years $9,863
15 years $13,071
17 years $16,280
19 years $19,488
21 years $22,697
23 years $25,905
25 years $29,113

Top Solar Installers in Phoenix

When switching to solar energy, many homeowners prefer to hire a solar installation company since installing solar panels yourself can be a challenging project. Companies can also have access to a large variety of the best solar panels and help you decide which one will be best for your family.

If you're looking for a solar installer in Phoenix, we've compiled a list of our top suggestions here:

Best National Provider

SunPower

★★★★★
5.0

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage
  • Expensive
  • Customer service varies by local dealer

Best for Leasing

Sunrun

★★★★★
4.0

  • Expansive service area
  • Many financing options
  • Some reported issues with customer service
  • Some reported issues with door-to-door sales

Best Social Impact

Palmetto Solar

★★★★★
4.0

  • Expansive service area
  • Makes charitable contributions
  • Certified B Corp
  • No leases or PPAs
  • Quality of installation may vary by location

See all of the solar companies in Phoenix

Factors that Affect Solar Panel Costs in Phoenix

Cost is usually one of the most important factors for homeowners who want to invest in solar. There are a few key factors that will push your cost above or below the average in Phoenix: solar equipment and system size, financing options and the solar installation company you choose. We’ll discuss each of these briefly below.

Solar Equipment

The cost of solar panel systems varies by thousands of dollars due to some different factors. One of the most significant factors is the system size, which is measured in kilowatts (kW). Solar power systems that have greater efficiency or power generation use better technology and/or more equipment, both of which can raise costs. For each additional kilowatt you need, your cost can go up by about $3,070.The type of solar equipment you choose can increase or decrease your cost by thousands or even tens of thousands of dollars. If you opt for the most efficient solar panel brands, you’ll end up paying more upfront than if you opted for the most affordable panels. On the other hand, more efficient panels could save you more over time on your power bills. In addition, add-on products, like solar batteries, can bump up your total well above the Phoenix average.

Solar Financing Terms

Solar panels can save you money on utility bills over many years, but they can also be a significant investment. That’s why many Phoenix homeowners decide to finance their solar panel systems to make going solar more affordable.Though solar loans make going solar more accessible for Phoenix homeowners, they can also raise the total you pay for your system due to interest. If you make a larger down payment, though, you can avoid paying as much in interest.

Solar Panel Installation Company

Finally, the company you hire to install your solar panel system can affect your pricing. Phoenix’s solar companies all have different labor costs and add varying upcharges to equipment. Some companies only sell high-efficiency and high-priced products — like Maxeon solar panels from SunPower or Tesla Powerwall batteries — so choosing those installers will generally come at a higher cost. It’s best to do some research and choose a company that provides the products, warranties and services you’re looking for and also fits within your budget.

Solar Panel Cost Data by System Size

System size Cost per system watt Solar system cost 25-Year savings Payback period
6 kW $3.19 $13,410 $25,769 8.6 years
8 kW $3.13 $17,536 $34,702 8.4 years
10 kW $3.07 $21,490 $43,807 8.2 years
12 kW $3.01 $25,272 $53,084 8.1 years
14 kW $2.95 $28,883 $62,533 7.9 years
16 kW $2.89 $32,321 $72,154 7.7 years
18 kW $2.82 $35,587 $81,947 7.6 years
20 kW $2.76 $38,682 $91,912 7.4 years

How to Save on Solar Panels

There are a lot of solar installers to choose from, all of which offer different warranties, solar panel models and price points. To help you pick the right company for you, here are some tips to keep in mind:

  • Contract: Before you sign a contract with a solar installer, make sure to read it through completely 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.
  • Reputation: Solar companies that have great reviews from their customers and that have been in business for many years in most cases provide high-quality solar panel installation and expertise.
  • Solar Panel Brands: The type of solar panel you’d like plays a role in which company you should choose, since different companies have access to different panels.
  • Installation Process: Get details from your solar installer about the installation process and what to expect, including when the site survey will be completed and what the project timeline is.

Best National Provider

SunPower

★★★★★
5.0

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage
  • Expensive
  • Customer service varies by local dealer

Best for Leasing

Sunrun

★★★★★
4.0

  • Expansive service area
  • Many financing options
  • Some reported issues with customer service
  • Some reported issues with door-to-door sales

Best Social Impact

Palmetto Solar

★★★★★
4.0

  • Expansive service area
  • Makes charitable contributions
  • Certified B Corp
  • No leases or PPAs
  • Quality of installation may vary by location

EcoWatch's Phoenix, AZ Solar Cost FAQs

How much does it cost to install solar panels in Phoenix?

The average cost of solar panels in Phoenix is about $15,350 for a 5-kW system and $30,700 for a 10-kW system before the ITC, but the actual cost will depend on certain factors like the kind of solar panels you want, what size system you need and how much energy you consume.

Should I lease or buy solar panels in Phoenix?

Leasing solar panels can be an option if you can’t pay upfront or secure a solar loan, but since you don’t own the system, you can’t take advantage of many solar incentives. Also your property value won’t increase, so you’ll have less savings over time. If you can afford to buy a solar system upfront, then buying is the better option if you want the most bang for your buck from going solar.

Is it worth going solar in Phoenix?

Solar panels can be a good investment for many homeowners, but they might not be worth it for everyone. If your home doesn't get enough sunlight and/or your electricity bills are already reasonably low, solar panels might not be for you.

How long do solar panels last in Phoenix?

Although the average lifespan of solar panels is 25 to 30 years, that doesn't mean they should be disposed of at that time. What this means is how much energy they produce will have decreased significantly after that point. You can replace them after having them for that long or you can keep using 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.

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