Solar Panel Cost Guide in Tempe, AZ (2024 Update)
- Tempe Solar Installation Cost: $10,991
- 25-Year Savings: $22,129
- Payback Period: 8.7 Years
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Average Cost of Solar Panels in Tempe
We break down average solar pricing in Tempe.
In Tempe, solar panels cost about 3 per watt on average.The average Tempe homeowner needs a 5.1-kilowatt system, which would cost about $10,991 with the federal tax credit, or $15,717 before the 0 tax credit is applied.
Keep in mind that the numbers above are only averages. The price you’ll end up paying for solar will differ based on your household energy needs, the type of solar system you want, your solar contractor and more.With average savings of about $23,000 on electricity bills over 20 years, many homeowners in Tempe find going solar has a decent ROI.
Click the button below to get connected to a top solar installer in your area for a personalized estimate.
Solar savings over time in Tempe
| Year | Return on Investment |
|---|---|
| 1 years | $-9,532 |
| 3 years | $-6,613 |
| 5 years | $-3,694 |
| 7 years | $-776 |
| 9 years | $2,143 |
| 11 years | $5,062 |
| 13 years | $7,981 |
| 15 years | $10,899 |
| 17 years | $13,818 |
| 19 years | $16,737 |
| 21 years | $19,656 |
| 23 years | $22,574 |
| 25 years | $25,493 |
Top Solar Installers in Tempe
Many homeowners opt for a solar installer since figuring out how to install solar panels yourself can be a labor-intensive endeavor. Solar warranties and repairs are typically included in the cost of installation when you opt for a solar contractor as well, which can save you more money after your initial investment.
Working with a licensed solar installer can make going solar easier. Here are our recommendations:
Best National Provider
SunPower
- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
- Expensive
- Customer service varies by local dealer
Best for Leasing
Sunrun
- Expansive service area
- Many financing options
- Some reported issues with customer service
- Some reported issues with door-to-door sales
Best Social Impact
Palmetto Solar
- Expansive service area
- Makes charitable contributions
- Certified B Corp
- No leases or PPAs
- Quality of installation may vary by location
See all of the solar companies in Tempe
Factors that Affect Solar Panel Costs in Tempe
For many Tempe homeowners, the decision to install solar panels comes down to cost. However, the range of solar installation costs can be quite wide in Tempe, with typical prices between $20,000 to $40,000. There are various factors that considerably influence the price you’ll pay, which we'll go over below.
Solar Equipment
When it comes to estimating the price of solar panels in Tempe, 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 figure out by looking at past electricity bills. Your overall cost can increase by around $3,070 for each additional kilowatt you need.The model of solar panels and equipment you want is another factor that will greatly impact costs. Solar panels that have higher efficiency, like monocrystalline panels, tend to cost more. Furthermore, solar equipment is more than just the solar panels themselves. You’ll also need to decide on the kind of racks used to mount the panels, inverters, solar batteries, etc. It’s important to take all of this into consideration when researching a solar system that’s in your budget.
Solar Financing Terms
For some homeowners, paying for a solar system out of pocket can be a challenge. Solar loans are available from most installers in Tempe, which can lower, or in some cases totally eliminate, your upfront costs to make solar more affordable.You’ll have to consider the long-term cost of loans, including the amount of interest you’ll pay over the length of the loan. If you’re only able to get a high-interest loan, then your total can be hundreds or even thousands of dollars above the equipment and labor cost. Making a larger down payment or finding a solar loan with a low interest rate could reduce your costs remarkably.
Solar Panel Installation Company
A final factor to consider when trying to figure out the cost of solar for your home or business in Tempe is the company you get to install your PV system. As with choosing a company to build a deck or pool, for example, there’s no shortage of solar installers that provide a range of services at different costs.You may notice national solar installers that have lower prices due to their bigger brand name and access to bulk equipment prices, 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 | $3.19 | $13,410 | $23,512 | 9.1 years |
| 8 kW | $3.13 | $17,536 | $31,693 | 8.9 years |
| 10 kW | $3.07 | $21,490 | $40,046 | 8.7 years |
| 12 kW | $3.01 | $25,272 | $48,571 | 8.6 years |
| 14 kW | $2.95 | $28,883 | $57,267 | 8.4 years |
| 16 kW | $2.89 | $32,321 | $66,136 | 8.2 years |
| 18 kW | $2.82 | $35,587 | $75,177 | 8.0 years |
| 20 kW | $2.76 | $38,682 | $84,389 | 7.9 years |
How to Save on Solar Panels
The solar installer you choose 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 several important things you should keep in mind, such as:
- Warranty: Many companies offer different kinds of warranties that cover different things. A 25-year, all-inclusive warranty is the gold standard.
- Reputation: Solar panel companies that have great reviews from their customers and that have been in business for many years likely offer quality solar panel installation and expertise.
- Solar Panel Brands: Homeowners will have different preferences for panels depending on their locations and energy needs. While there are many options for which brand of solar panel you can get, not every company will have access to the exact one you may want or need, so make sure you peruse their list of offerings before making your decision.
- Contract: When reading through 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 the company going out of business.
Best National Provider
SunPower
- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
- Expensive
- Customer service varies by local dealer
Best for Leasing
Sunrun
- Expansive service area
- Many financing options
- Some reported issues with customer service
- Some reported issues with door-to-door sales
Best Social Impact
Palmetto Solar
- Expansive service area
- Makes charitable contributions
- Certified B Corp
- No leases or PPAs
- Quality of installation may vary by location
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 $15,350 for a 5-kW system and $30,700 for a 10-kW system before the ITC, but the real cost will depend on certain factors like the model of solar panels you want, what size system you need and how much energy you consume.
Is cost the most important consideration when buying solar panels?
The initial cost is a key factor to consider, but whether it’s the most important for you depends on why you decided to go solar. In places where rooftop space is limited, efficiency can be more important than the cost. Other factors that are important to take into account are the quality and durability of your solar panels.
Can you sell solar power back to the grid in Tempe?
Each state has some kind of net metering programs except Tennessee, South Dakota and Alabama currently. Some states allow you to sell power back to the grid, but others just offer you credit toward your future utility bills.
How long do solar panels last in Tempe?
Though the average lifespan of solar panels is 25 to 30 years, that doesn't mean they should be disposed of at that time. What this means is their energy production will have decreased significantly after that point. You can decide to replace them after having 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.