Solar Panel Cost Guide in Tempe, AZ (2023 Update)
- Tempe Solar Installation Cost: $9,336
- 25-Year Savings: $22,137
- Payback Period: 7.4 Years
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Updated May 04, 2023
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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 2.61 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 after 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 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 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
The size of the solar panel system you need for your home, which is measured in kilowatts, 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 |
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 Warranty Coverage
Sunpro Solar
- Industry-leading warranty coverage
- Expansive service area
- Some reported communication issues
- No leases or PPAs
EcoWatch's Tempe, AZ Solar Cost FAQs
What is the average cost of installing solar panels in Tempe?
This is a tough question to answer precisely, because the cost depends on a few different 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 extra solar equipment or higher quality panels, or if you have higher-than-average energy needs. Conversely, you can spend less if you opt for a smaller solar panel system or less expensive solar panels.
Can you get solar panels for free in Tempe?
You can't get solar panels for free in Tempe. However, you may still be able to afford them on a lower budget. You can lease solar panels for a low upfront cost or, if you want to own your solar panels, you can finance them with a solar loan.
How much can I save on electricity bills after installing solar panels?
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?
Although 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 how much energy they produce will have decreased significantly after that point. You can opt to replace them after having them for that long or you can continue to use 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.