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

  • Tempe Solar Installation Cost: $9,336
  • 25-Year Savings: $22,137
  • Payback Period: 7.4 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 Tempe

See how much it might cost to make the switch to solar in Tempe.

In Tempe, solar panels cost about $3 per watt on average. Because a 5.1-kW system is needed to cover the energy usage of a typical home in Tempe, the average price of going solar will be about $9,336 before claiming the federal solar tax credit of 30%.

Keep in mind that the numbers above are only averages. The price you'll end up paying for solar may vary based on your household energy consumption, the type of solar panels you want to get, your solar contractor and more. But, after you've paid the initial cost of installation, the return on investment for most homeowners is typically fruitful, with a net average savings of about $23,000 over 20 years on power bills.

You can click the button below to get connected with a pre-vetted solar installer in Tempe for a quote for your home.

Solar savings over time in Tempe

Year Return on Investment
1 years $-8,077
3 years $-5,559
5 years $-3,041
7 years $-523
9 years $1,994
11 years $4,512
13 years $7,030
15 years $9,548
17 years $12,066
19 years $14,584
21 years $17,102
23 years $19,619
25 years $22,137

Top Solar Installers in Tempe

Putting up solar panels yourself can be a challenging project, which is why getting a solar installation company is a good option for many homeowners. The expertise that solar installers provide can be useful as well, especially if you aren't sure what type of solar equipment would be right for your home.

There are various licensed solar professionals that can take care of your solar installation project. Here are our suggestions:

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

There are several factors that can play into your solar panel installation cost, such as the size of your system, the equipment you choose, your financing options and the specific company that installs your solar system.

Solar Equipment Size

The size of the solar panel system you need for your home is the most important cost factor to consider. For every additional kilowatt you need, you can expect your total to increase by about $2,610. Some solar brands — like Maxeon from SunPower — are more expensive upfront but also tend to offer better efficiency. In a city like Tempe, where sunlight is abundant, efficiency can quickly pay off. In addition, if you have a small roof or limited space for your panels, higher efficiency options will be more impactful. Additional equipment like electric vehicle chargers and solar batteries will also increase the cost.

Solar Financing Terms

For some homeowners, paying for a solar system out of pocket can be difficult. Solar loans are available from most installers in Tempe, which can bring down, or in some cases completely eliminate, your upfront costs to make solar more affordable. However, the interest on solar loans also increases your overall costs, so it's important to consider that as well. You can always reduce the total you pay in interest and sometimes even your APR by putting more money down.

Solar Panel Installation Company

A final consideration when trying to estimate the cost of solar for your home or business in Tempe is the company you hire to install your PV system. As with choosing a company to renovate your kitchen, for instance, you'll have many options for solar installers that provide a range of services at different price points. You may notice national solar installers that have lower prices due to their larger brand name and access to bulk prices, or you might see small, local installation companies offering deals or specials 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 $25,521 7.7 years
8 kW $2.66 $14,908 $34,320 7.6 years
10 kW $2.61 $18,270 $43,266 7.4 years
12 kW $2.56 $21,486 $52,357 7.3 years
14 kW $2.51 $24,555 $61,595 7.1 years
16 kW $2.45 $27,478 $70,979 7.0 years
18 kW $2.40 $30,255 $80,509 6.8 years
20 kW $2.35 $32,886 $90,185 6.7 years

Solar Incentives in Tempe

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

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:

  • Solar Panel Brands: Different companies have different brands and kinds of panels. If you prefer a specific brand, make sure the solar panel installer you're considering has it.
  • Installation Process: One of the most important things to understand when adopting solar energy is the installation process itself. Be sure to clarify any details you should know with your solar company, such as what permits you should secure and what the project timeline is.
  • Reputation: Your solar installer should have a good reputation as a company and have proven 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.
  • Contract: It's important to read your solar installer's contract well to understand what services they will provide, what the warranty covers and what you can expect about the project 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 stuff like the kind of solar panels you want, what size system you need and how much energy you consume.

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

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 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.

Is going solar worth it?

Solar panels can be a good investment for lots of 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 fairly low, solar panels might not be for you.

What solar power system size is right for my home?

To figure out what solar panel system size you need, you should find out how much energy your home requires 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.

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