Solar Panel Cost Guide in Scottsdale, AZ (Mar 2023)
- Scottsdale Solar Installation Cost: $9,336
- 25-Year Savings: $23,973
- Payback Period: 7.0 Years
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Updated March 14, 2023
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Average Cost of Solar Panels in Scottsdale
Let's have a look at the average cost of solar in Scottsdale.
Although the national average of solar panels is $2.66 per watt, solar panels in Scottsdale typically cost around 2.61. To account for the typical energy usage of the average home in Scottsdale, most homeowners require a 5.1-kilowatt system. Using the figure above, a solar installation costs around $9,336, or $13,350 before the federal solar tax credit of 30% is applied.
Keep in mind that the figures above are only estimates based on the average energy use of Scottsdale homeowners. The cost of a solar system for your home may look different depending on factors unique to your situation, like your household energy use and solar contractor. For many homeowners, the upfront cost of solar power is worth paying. On average homeowners in Scottsdale see about $25,000 in savings on energy bills over 20 years.
To calculate your potential ROI and connect with a local solar installer, click the button below.
Solar savings over time in Scottsdale
| Year | Return on Investment |
|---|---|
| 1 years | $-8,004 |
| 3 years | $-5,339 |
| 5 years | $-2,674 |
| 7 years | $-10 |
| 9 years | $2,655 |
| 11 years | $5,320 |
| 13 years | $7,985 |
| 15 years | $10,649 |
| 17 years | $13,314 |
| 19 years | $15,979 |
| 21 years | $18,643 |
| 23 years | $21,308 |
| 25 years | $23,973 |
Top Solar Installers in Scottsdale
Although you can install solar panels yourself, it requires extra energy and know-how. For that reason, the majority of homeowners choose to hire a solar panel installer. Also, companies with a high reputation that cost more upfront could actually save you money in the long run due to their warranties, repair services and expert design.
Working with a licensed solar installer can help your solar project go smoothly. Here are our recommendations:
Best Technology
Tesla Energy
- 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
- Industry-leading warranty coverage
- Expansive service area
- Some reported communication issues
- No leases or PPAs
See all of the solar companies in Scottsdale
Factors that Affect Solar Panel Costs in Scottsdale
While the average cost of a solar system in Scottsdale is $9,336, your final cost may be above or below the average. There are several factors that can have a significant impact on the cost of a solar system installation. Below are some of the more crucial things to keep in mind.
Solar Equipment
The cost of solar panel systems varies by thousands of dollars due to a variety of 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 production require 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 $2,610. Some solar brands — like Maxeon from SunPower — are more expensive upfront but also tend to offer higher efficiency. In a city like Scottsdale, where sunlight is abundant, efficiency can quickly pay off. Plus, if you have a small roof or limited 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
Solar panels can save you money on power bills over time, but they can also be a significant investment. That's why many Scottsdale homeowners decide to finance their solar panel systems to offset upfront costs. However, the interest on solar loans also adds to your all-in costs, so it's vital to include that in your estimate as well. You can always bring down the total you pay in interest and possibly even your APR by putting more money down.
Solar Panel Installation Company
Finally, the company you opt for to install your solar panel system can influence your pricing. Scottsdale's solar companies all have different labor costs and add varying upcharges to equipment. You may come across national solar installers that have lower prices due to their larger brand name and access to bulk equipment pricing, or you might see small, local installation companies offering deals or promotions to compete with those major players.
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 | $27,674 | 7.3 years |
| 8 kW | $2.66 | $14,908 | $37,191 | 7.2 years |
| 10 kW | $2.61 | $18,270 | $46,855 | 7.0 years |
| 12 kW | $2.56 | $21,486 | $56,664 | 6.9 years |
| 14 kW | $2.51 | $24,555 | $66,620 | 6.7 years |
| 16 kW | $2.45 | $27,478 | $76,721 | 6.6 years |
| 18 kW | $2.40 | $30,255 | $86,969 | 6.5 years |
| 20 kW | $2.35 | $32,886 | $97,363 | 6.3 years |
How to Save on Solar Panels
The company that does your system installation will affect the warranties and brands available to you, and it will also have an impact on your total cost. Because picking a company can be a tough decision, we have some tips to help you, such as:
- Warranty: Each company may offer different kinds of warranties that provide different kinds of coverage. A 25-year, all-inclusive warranty is the gold standard.
- Solar Panel Brands: Not all solar companies offer the same brands of solar panels, so the brand and type of panel you want can play a considerable role in the company you hire.
- Installation Process: Get detailed information from your solar company about the installation process and what to expect, including when the site survey will be completed and how long it will take.
- Contract: Though reading through a contract can take a lot of time, it's important to do it fully so you can make sure you understand what services your solar company will provide and how part repairs and replacements will be handled.
Best Technology
Tesla Energy
- 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
- Industry-leading warranty coverage
- Expansive service area
- Some reported communication issues
- No leases or PPAs
EcoWatch's Scottsdale, AZ Solar Cost FAQs
How much does it cost to install solar panels in Scottsdale?
This is a hard question to answer precisely, because the cost depends on many 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. You can expect to pay more if you want other solar equipment or higher quality panels, or if you have above-average energy usage. On the flip side, you can spend less if you go with a smaller solar panel system or less efficient solar panels.
Is it better to lease or buy solar panels in Scottsdale?
Leasing solar panels can be an appealing choice, as it commonly comes with low or $0 upfront payments. The downside is that you won't be able to save as much. If you lease, you don't own the system, so you can't claim any incentives and your home value won't increase. Buying solar panels is a better way to go if you want to get the most savings.
How much can I save on energy bills after switching to solar?
It is possible to erase your electricity bills with solar panels, but for most homeowners in Scottsdale, that will require at least a 10-kW system. Not all homes will have the roof space for that size system, so you'll want to contact a local solar installer to see how many panels can fit on your roof.
What solar power system size is right for my home?
To figure out how many solar panels you need, you should find out how much energy your home needs and how much sunlight your home gets. For a general estimate, however, since each panel can generally produce about 250 to 400 watt-hours per hour, the average house will need 20 to 35 panels.
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.