Solar Panel Cost Guide in Phoenix, AZ (Sep 2022)

  • Phoenix Solar Installation Cost: $9,336
  • 25-Year Savings: $24,061
  • Payback Period: 7.0 Years

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EcoWatch Local Advisors

By EcoWatch Local Advisors

Updated 9/16/2022

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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 $3 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 $6,909 after 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 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 Technology

The Green Panel

★★★★★
4.5

  • Price-match guarantee
  • Sleek, efficient, and durable solar panels
  • Best solar battery on the market
  • Some reported issues with customer service
  • Customer service varies by local dealer

Best Warranty Coverage

Sunpro Solar

★★★★★
4.0

  • 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 Size

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 consider is the installer you choose. Given the massive popularity of renewable energy solutions in Phoenix, you'll have lots of options to choose from, but each comes at different 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

Solar Incentives in Phoenix

Name Solar and Wind Equipment Sales Tax Exemption
More Info Click here

Name Residential Solar and Wind Energy Systems Tax Credit
Incentive Amount 25%
Website Visit here
More Info Click here

Name Qualifying Wood Stove Deduction
More Info Click here

Name Energy Equipment Property Tax Exemption
More Info Click here

Name SRP - Solar Water Heating Program
Website Visit here
More Info Click here

Name Residential Renewable Energy Tax Credit
Website Visit here
More Info Click here

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, durability and energy efficiency. They will come at different price points as well. The company you choose has an impact on which solar panel brands you have access to.
  • Warranty: If you care about the durability of your solar panel system, making sure your installer offers a 25-year, all-inclusive warranty can help put you at ease.
  • Contract: Review the contract terms carefully to make sure you understand the overall cost, completion timeline rebates and warranties.
  • 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 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 Technology

The Green Panel

★★★★★
4.5

  • Price-match guarantee
  • Sleek, efficient, and durable solar panels
  • Best solar battery on the market
  • Some reported issues with customer service
  • Customer service varies by local dealer

Best Warranty Coverage

Sunpro Solar

★★★★★
4.0

  • 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 a variety of factors. Broadly speaking, it costs about $13,050 for a 5-kW system and $26,100 for a 10-kW system after the ITC is applied. It will cost more if you want additional solar equipment or higher quality panels, or if you have above-average energy usage. Conversely, 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?

Solar panels aren't free in Phoenix, but there are some options that can make getting them more affordable, 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.

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