Solar Panel Cost Guide in Phoenix, AZ (2025 Update)
- Phoenix Solar Installation Cost: $10,991
- 25-Year Savings: $24,053
- Payback Period: 8.2 Years
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Average Cost of Solar Panels in Phoenix
Find out how much it might cost to go solar 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 $10,991 for a solar installation, or $15,717 before the 0 federal solar tax credit is applied.
The true cost of your system can go above or below the average in Phoenix depending on a few factors, such as the kind of solar panels you choose and the solar company you hire.But, once you've paid the upfront cost of installation, the payback for most homeowners is typically good, with a net average savings of about $25,000 over 20 years on utility bills.
To calculate your potential savings and connect with a local solar installer, 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
Do-it-yourself solar panel installation is a way to cut costs, but it's an undertaking that can be a pain. Hiring a solar company can make switching to solar power much easier. A solar installer can also help save you money over time by offering warranties, repairs and part replacements.
If you're looking for a solar installer in Phoenix, we've put together a list of our top suggestions here:
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 considering investing 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 go over each of these briefly below.
Solar Equipment
When it comes to estimating the price 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 largely based on your home’s energy consumption, which you can figure out by looking at past power bills. Your overall cost can increase by about $3,070 for each additional kilowatt you need.Some solar panel brands — like Maxeon from SunPower — cost more upfront but also tend to offer higher efficiency. In a city like Phoenix, where sunlight is abundant, efficiency can quickly pay off. In addition, if you have a small roof or you don’t have a lot of space for your panels, higher efficiency options will be a better option. Additional equipment like electric vehicle chargers and solar batteries will also increase the cost.
Solar Financing Terms
For some homeowners, paying for solar panels out of pocket can be challenging. Solar loans are provided by most installers in Phoenix, which can bring down, or in some cases completely eliminate, your upfront costs to make 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, depending on your interest rate. If you put down a larger down payment, though, you can cut back on how much interest you have to pay.
Solar Panel Installation Company
Lastly, the company you choose to install your solar panels can affect your pricing. Phoenix’s solar companies all have different labor costs and add varying upcharges to equipment. The company’s size sometimes plays the most considerable role in the cost. Larger national companies, like SunPro and Sunrun, often have lower prices due to access to more resources and better pricing. Smaller local companies might be more costly, but they generally have better customer service and more customization options, and the occasional sale or discount can bring their pricing down to compete with bigger names.
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
The solar installer you opt for will affect not only your total costs, but also the kinds of solar panel brands, warranties, and other equipment you can get. When choosing a solar company, there are some important things you should keep in mind, such as:
- Contract: When looking over your solar installer’s contract, ask for clarification about any terms you’re not sure of and be sure you understand what happens in scenarios such as a system part breaking or if the company goes out of business.
- Reputation: Your solar installer should have a sound reputation as a company and have verifiable expertise in the field. A couple of ways to check this are to look for whether a company has technicians certified by the North American Board of Certified Energy Practitioners (NABCEP) and if it has satisfied reviews from previous customers.
- Solar Panel Brands: The brand of solar panel you’d like to get plays a part in which installer you should choose, since different companies have different panels.
- Installation Process: When making the switch to solar, it’s necessary to keep an open line of communication with your solar company. See to it that you understand how the installation process will go and the project completion timeline.
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 few different factors. Generally speaking, it costs about $15,350 for a 5-kW system and $30,700 for a 10-kW system after the ITC is applied. You can expect to pay more if you want other solar equipment or more efficient panels, or if you have higher-than-average energy usage. On the flip side, you can spend less if you want a smaller solar panel system or cheaper solar panels.
Is it better to lease or buy solar panels in Phoenix?
Leasing solar panels can be an option if you can’t pay upfront or get a solar loan, but since you don’t own the system, you can’t take advantage of many solar incentives. Also your home 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 going solar worth it?
Solar panels can be a good investment for a majority of homeowners, but they might not be worth it for everyone. If your home doesn't get a lot of direct sunlight and/or your energy bills are already pretty low, solar panels might not be for you.
How often do you have to replace solar panels?
On average, the lifespan of solar panels is about 25 to 30 years. Some even last up to 50 years, but their efficiency decreases by about 0.8% each year. You can choose to replace them sooner if you want to maintain a higher level of energy production.
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.