Solar Panel Cost Guide in Tempe, AZ (Aug 2022)

  • Tempe Solar Installation Cost: $9,869
  • 25-Year Savings: $21,604
  • Payback Period: 7.8 Years

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EcoWatch Local Advisors

By EcoWatch Local Advisors

Updated 7/19/2022

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Average Cost of Solar Panels in Tempe

Let's take a look at the average cost of solar panels in Tempe.

The national average cost of solar panels is $2.66 per watt, but in Tempe it's $3 per watt. To cover the typical energy needs of the average home in Tempe, most homeowners require a 5.1-kilowatt system. Using the per-watt figure above, a solar installation costs about $9,869, or $7,303 after the federal solar tax credit is applied.

How much you pay can be higher or lower than the average in Tempe depending on a few factors, such as the type of solar panels you choose and the solar company you hire. Many homeowners find going solar is a rewarding investment. The average homeowner in Tempe can save about $23,000 on their energy bills over 20 years.

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

Solar savings over time in Tempe

Year Return on Investment
1 years $-8,611
3 years $-6,093
5 years $-3,575
7 years $-1,057
9 years $1,461
11 years $3,979
13 years $6,497
15 years $9,014
17 years $11,532
19 years $14,050
21 years $16,568
23 years $19,086
25 years $21,604

Top Solar Installers in Tempe

Many homeowners opt for a solar installation company since trying to install solar panels by yourself can be challenging. Plus, warranties and repairs from your solar panel installer can protect your investment and lower the cost of maintenance over time.

Working with a professional solar installer can help you make the most of your investment in solar. Here are our recommendations:

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 Tempe

Factors that Affect Solar Panel Costs in Tempe

Cost is often one of the most important factors for homeowners who are considering investing in solar. There are a few primary factors that determine your overall cost in Tempe: 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 Size

One of the most important factors to consider when it comes to the cost of going solar is the size of the solar system, which is measured in kilowatts (kW). The more power your household uses, the larger your system will likely need to be. You can expect to pay around $2,610 per kilowatt in Tempe. The brand and type of equipment you choose for your solar system can increase or decrease the price quite significantly. If you prefer a trusted brand name like Tesla or SunPower, these often come at a higher price than other brands. Efficiency also matters. Whether you're opting for high efficiency because you have a small roof or just want maximum energy production, you can expect a higher equipment cost, but this can typically lead to more savings over time. Plus, if you want add-ons like an electric vehicle charger or solar batteries, this will also raise the cost.

Solar Financing Terms

Solar panels can save you money on energy bills over time, but they can also be a big investment. That's why many Tempe homeowners decide to finance their solar panel systems to make going solar more affordable. However, the interest on solar loans also increase your overall 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

A final factor to consider when trying to evaluate the cost of solar for your home or business in Tempe is the company you choose to install your PV system. As with choosing a company to build a deck or pool, for example, you'll have many options for solar installers that provide a range of services for different budgets. Additionally, some companies in Tempe are more knowledgeable about local solar incentives and can help you take advantage of additional rebates or tax exemptions. Though, they may charge more for walking you through the whole process. Even if they cost more upfront, they could end up saving you more money in the long run.

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 $12,052 $24,870 8.2 years
8 kW $2.66 $15,760 $33,468 8.0 years
10 kW $2.61 $19,314 $42,222 7.8 years
12 kW $2.56 $22,713 $51,130 7.7 years
14 kW $2.51 $25,958 $60,192 7.5 years
16 kW $2.45 $29,048 $69,409 7.4 years
18 kW $2.40 $31,984 $78,780 7.2 years
20 kW $2.35 $34,765 $88,306 7.1 years

Solar Incentives in Tempe

Name Solar and Wind Equipment Sales Tax Exemption
Incentive Amount 100% of sales tax on eligible equipment
Incentive Max No maximum
More Info Click here

Name ITC
Type Tax Incentive
Incentive Amount 26% of installation cost
Website Visit here

Name Energy Equipment Property Tax Exemption
Incentive Amount 100% of increased value
More Info Click here

Name Residential Solar and Wind Energy Systems Tax Credit
Incentive Amount 25%
Incentive Max $1,000 maximum credit per residence, regardless of number of energy devices installed
Website Visit here
More Info Click here

How to Save on Solar Panels

The solar company you choose will affect not only your total costs, but also the types of solar panel brands, warranties, and other equipment you have access to. When choosing a solar company, there are some important things you should keep in mind, including:

  • Contract: Although reading through a contract can be tedious, it's important to do it thoroughly so you can make sure you understand how much the equipment and services will cost and how part repairs and replacements will be handled.
  • Warranty: If youcare about the longevity of your solar panels, checking your installer offers a 25-year, all-inclusive warranty can give you some peace of mind.
  • Reputation: Your solar installer should have a solid reputation as a company and have proven expertise in the field. Two 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 positive reviews from past customers.
  • Installation Process: Homeowners should make sure they understand how exactly the installation process will be carried out, as well as important factors like the completion timeline.

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 Tempe, AZ Solar Cost FAQs

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

The average cost of solar panels in Tempe is about $13,050 for a 5-kW system and $26,100 for a 10-kW system before the ITC, but the real cost will depend on certain factors like the type of solar panels you want, what size system you need and how much energy you use.

Is it better to lease or buy solar panels in Tempe?

Leasing solar panels can be an option if you are unable to pay upfront or get a solar loan, but since you don't own the system, you don't have access to 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 financial benefits from going solar.

Can solar panels significantly reduce my electricity bills?

Solar panels can potentially eliminate your electricity bills depending on your location 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 $1,230.71 per year.

How often do you have to replace solar panels?

Though the average lifespan of solar panels is 25 to 30 years, that doesn't mean they stop working completely at that time. What this means is how much energy they produce will have decreased significantly after that point. You can choose to replace them once you've had 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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