Solar Panel Cost Guide in Phoenix, OR (2025 Update)
- Phoenix Solar Installation Cost: $8,870
- 25-Year Savings: $15,722
- Payback Period: 9.9 Years
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Average Cost of Solar Panels in Phoenix
Find out what the average cost of a solar system is in Phoenix.
In Phoenix, solar panels cost about 4 per watt on average.The average Phoenix homeowner needs a 3.6-kilowatt system, which would cost about $8,870 with the federal tax credit, or $12,684 before the 0 tax credit is applied.
These figures are just estimates, and your own solar costs will look different based on your specific situation and what company you want to go with.With typical savings of about $25,000 on electricity bills over 20 years, many homeowners in Phoenix find investing in solar can be quite rewarding.
You can click the button below to get connected with a vetted solar company in Phoenix for a quote for your home.
Solar savings over time in Phoenix
| Year | Return on Investment |
|---|---|
| 1 years | $-7,661 |
| 3 years | $-5,242 |
| 5 years | $-2,824 |
| 7 years | $-405 |
| 9 years | $2,014 |
| 11 years | $4,432 |
| 13 years | $6,851 |
| 15 years | $9,269 |
| 17 years | $11,688 |
| 19 years | $14,107 |
| 21 years | $16,525 |
| 23 years | $18,944 |
| 25 years | $21,363 |
Top Solar Installers in Phoenix
Trying to put up solar panels yourself can be a time-consuming undertaking, which is why hiring a solar installation company is a good option for many homeowners. Local solar installation companies can also help you optimize your return on investment by assisting with any local incentives you can benefit from and by offering warranties and repairs.
Working with a vetted solar installer can help you make the most of your investment in solar. Here are our recommendations:
See all of the solar companies in Phoenix
Factors that Affect Solar Panel Costs in Phoenix
For many Phoenix homeowners, the decision to adopt solar energy depends on cost. However, the range of solar installation costs can be quite wide in Phoenix, with typical prices between $20,000 to $40,000. There are various factors that greatly influence the price you’ll pay, which we'll go over below.
Solar Equipment
The cost of solar panels varies by thousands of dollars due to a variety of factors. One of the notable factors is the system size, which is measured in kilowatts (kW). Solar power systems that have greater efficiency or power generation require better technology and/or more equipment, both of which can increase costs. For each additional kilowatt you need, your cost can go up by about $3,500.There are a lot of different solar panel brands and the one you choose also changes the cost. Generally speaking, the brands that have better efficiency tend to also cost more. Plus, the type of equipment you want to install can affect your total cost. If you just need panels, your system will be much less expensive than if you also need solar batteries or an electric vehicle charger.
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 Phoenix homeowners opt to finance their solar panel systems to offset upfront costs.However, the interest on solar loans also adds to your overall costs, so it’s vital to include that in your estimate 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
The remaining significant cost factor you should keep in mind is the installer you choose. Given the massive popularity of sustainable energy solutions in Phoenix, you’ll have lots of options to choose from, but each comes at various price points for labor and equipment.Companies that only sell high-efficiency and high-priced products — like Maxeon solar panels from SunPower or Tesla Powerwall batteries — so choosing those installers will generally come at a higher cost. It’s best to do some research and go with the company that has the products, warranties and services you want and also fit into your budget.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $3.64 | $15,288 | $21,945 | 10.3 years |
| 8 kW | $3.57 | $19,992 | $29,652 | 10.1 years |
| 10 kW | $3.50 | $24,500 | $37,555 | 9.9 years |
| 12 kW | $3.43 | $28,812 | $45,654 | 9.7 years |
| 14 kW | $3.36 | $32,928 | $53,949 | 9.5 years |
| 16 kW | $3.29 | $36,848 | $62,440 | 9.3 years |
| 18 kW | $3.22 | $40,572 | $71,127 | 9.1 years |
| 20 kW | $3.15 | $44,100 | $80,010 | 8.9 years |
How to Save on Solar Panels
There are many solar installers to choose from, all of which offer different warranties, solar panel brands and price points. To help you decide on the right company for you, here are some tips to keep in mind:
- Installation Process: Homeowners should make sure they know how exactly the installation process will be carried out, as well as important factors like the project timeline.
- Contract: When reading through your solar installer’s contract, ask questions about any terms you’re not sure of and be sure you understand what happens in scenarios like a system component breaking or if the company goes out of business.
- Solar Panel Brands: Each solar panel brand and model has varying levels of quality, durability and energy efficiency. They will come at different price points as well. The company you choose impacts which solar panel brands you have access to.
- Reputation: Make sure your solar system installer has a good reputation by verifying it has certifications and licenses, checking its number of years in business and reading reviews by previous customers and solar experts like the EcoWatch team.
EcoWatch's Phoenix, OR Solar Cost FAQs
How much does it cost to install solar panels in Phoenix?
The average cost of solar panels in Phoenix is about $17,500 for a 5-kW system and $35,000 for a 10-kW system before the ITC, but the real cost will depend on stuff such as the model of solar panels you want, what size system you need and how much energy you use.
Should I lease or buy solar panels in Phoenix?
Leasing solar panels can be an attractive choice, because it typically 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 tax rebates and credits and your home value won’t increase. Buying solar panels is a better option if you want to get the most savings.
Is it worth going solar in Phoenix?
Solar panels can be a fruitful investment for many homeowners, but they might not be worth it for everyone. If your home doesn't get a lot of direct sunlight and/or your power bills are already reasonably low, solar panels might not be for you.
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 are completely unusable 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 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.