Solar Panel Cost Guide in Phoenix, OR (2024 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.
Bear in mind that the figures above are only estimates based on the average Phoenix homeowner. The cost of a solar system for your home may be different depending on factors unique to you, like your household energy use and solar contractor.With typical savings of about $25,000 on utility bills over 20 years, many homeowners in Phoenix find investing in solar can pay off big.
For a personalized quote from a local solar company that has been pre-vetted by EcoWatch, click the button below.
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
Although it's possible to install solar panels yourself, it involves extra labor and know-how. That's one of the reasons the majority of homeowners choose a solar panel installer. The payback period on an investment in solar panels will vary depending on factors like your roof configuration and energy needs, but working with a solar installer can shorten it. Your provider will be able to help you identify incentives available in your area.
You can work with a local solar installer to get a free estimate on the cost of solar panels for your home. Here are some in Phoenix:
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 Solar Financing
Blue Raven Solar
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
- Doesn't offer solar batteries
Best Technology
Tesla Energy
- 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
See all of the solar companies in Phoenix
Factors that Affect Solar Panel Costs in Phoenix
There are many factors that can affect your total 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
System size, which is measured in kilowatts, is one of the largest factors that affects the overall cost of installing solar panels. Because of that, it’s important to accurately assess the size of the solar energy system needed for your home by figuring out your average energy use.Some solar panel brands — like Maxeon from SunPower — are more costly upfront but also tend to offer higher efficiency. In a city like Phoenix, where sunlight is abundant, efficiency can quickly pay off. Also, if you have a small roof or you don’t have a lot of space for your panels, higher efficiency options will be a better option. Additional equipment like electric vehicle chargers and solar batteries will also increase the cost.
Solar Financing Terms
If paying for solar panels in cash is too expensive, solar loans are an affordable route because they reduce your upfront costs and allow you to pay for your system over five to seven years on average.It’s wise to factor the interest you’ll pay in your final cost estimate. If you can afford to pay a higher down payment, you can reduce your total costs and the amount of time it’ll take to pay back the loan.
Solar Panel Installation Company
Lastly, the company you choose to install your solar panel system can influence how much you pay. Phoenix’s solar companies all have different labor costs and add varying upcharges to equipment. The company’s size can sometimes play the most considerable role in the cost. Larger national companies, like SunPro and Sunrun, often have lower prices because they have greater resources and better pricing. Smaller local companies might be more costly, but they can sometimes have better customer service and more customization options, and the occasional sale or discount can bring their pricing down to compete with bigger companies.
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
The company that does your solar panel installation will affect the warranties and brands available to you, and it will also have an impact on your total cost. Since choosing a company can be a tough decision, we have some tips to help you, such as:
- Installation Process: Get detailed information from your solar installer about the installation process and what to expect, such as when the site survey will be done and what the project timeline is.
- Contract: Although reading through a contract can take a lot of time, it’s important to do it fully so you can be sure you understand what services your solar company will provide and the terms of the warranty.
- Solar Panel Brands: The model of solar panel you’d like to install plays a role in which company you should opt for, since different companies have access to different panels.
- Reputation: Well-established companies likely have a good reputation. This is important because it ensures that it will not only see your solar project through, but will also provide adequate aftercare and customer service, such as part repairs and replacements.
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 Solar Financing
Blue Raven Solar
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
- Doesn't offer solar batteries
Best Technology
Tesla Energy
- 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
EcoWatch's Phoenix, OR Solar Cost FAQs
What is the average cost of installing 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 like the model 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 Phoenix?
Leasing solar panels can be an option if you can’t afford to 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 property 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 it worth going solar in Phoenix?
Whether or not solar panels are worth it depends on some different factors like the cost of electricity near you and the amount of direct sunlight your roof gets.
How often do you have to replace solar panels?
On average, the lifespan of solar panels is about 25 to 30 years. Some even last up to 50 years, but their efficiency decreases by about 0.8% each year. You can choose to replace them sooner if you want to maintain a higher level of energy production.
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.