Here’s a quick look at the estimated cost of solar in Arizona:

*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit. **Payback period is calculated assuming the system is purchased in cash.

By Karsten Neumeister, Solar Expert

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As a homeowner in Arizona, you may be wondering: How much do solar panels cost in your area? In this article, we’ll discuss the average cost of a solar installation, how much that can save you on energy for your home and what incentives are available in your region. If you want to jump straight to getting a quote for an installation, you can follow the links below to speak with a verified professional.

Anyone who has spent time in the southwestern U.S., particularly in the deserts of Arizona, would find it no surprise that the region has some of the best natural solar resources in the country. But all the sunshine in the world won’t mean anything if the cost of solar panels in Arizona keeps renewable energy out of reach for homeowners across the Grand Canyon State.

From reduced energy bills to shrunken carbon footprints, there are many benefits of going solar. Regardless, for most homeowners, making the switch comes down to one key question: How much do solar panels cost in Arizona?

In this article, we’ll discuss the average cost of solar panels in Arizona as well as key information about financing solar, public policies that may incentivize solar installations and more. If you want to see how much solar would cost for your home, specifically, you’ll need to get a free quote from a solar installer near you.

Here is a list of preferred partners in this area.

Solar panel costs in Arizona are about on par with the U.S average. Local factors and supply limitations don’t hamper Arizona installations or pull prices in either direction. Based on market-based research and data from top solar companies, we’ve found that the average cost of solar panels in Arizona is $2.61 per watt (the national average is $2.66 per watt).

Of course, solar systems aren’t purchased one watt at a time, so what does that price look like in terms of actual installations? Using the state average, for a modestly sized 5-kilowatt (kW) system, the total system cost would be $13,050, but after the federal tax credit is applied, out-of-pocket costs would be lowered to about $9,657.

For larger systems to be installed on homes, businesses, schools or other facilities, average solar power costs break down as follows:

The above table provides statewide average prices, but each home solar panel installation will have its own unique characteristics, so costs will vary in actuality.

Some installations will be more straightforward (such as those on a roof that readily faces the sun) while others will be more complicated (such as an irregular-shaped roof or a ground-mounted system), so the actual price for a specific project is best estimated with an installer who can account for your individual needs.

There are a number of factors that can influence the cost of solar panels in Arizona, including the extent of your home’s energy needs and the local incentives you’re eligible for. Here are a few other key things that will play into pricing:

Not all solar energy systems are alike, and the specific equipment chosen for your project will influence the final cost. Solar panels themselves are seeing lots of research and development, meaning the most efficient solar panels can generate greater amounts of electricity — but they come at a higher cost.

Similarly, things like inverters, solar batteries and the mounting equipment needed to secure the panels to your roof will vary in cost based on the quality of materials and complexity of the install. If you opt for added features like rotating panels or smart technology, your investment will be even more significant.

Regardless of the size and quality of the solar system being installed, the total will usually be relatively high upfront. Because of these capital requirements, it’s extremely common for customers to finance their solar systems. The type of financing used will not only impact what a customer pays upfront, but it will also affect the length of the customer’s solar payback period, or how long it takes to “break even” on the investment.

Here’s how the three most common payment options can affect the cost of solar panels in Arizona:

A third factor that really impacts the cost of solar systems for Arizonans is the choice of installation company. The solar industry is booming, and as such, there is no shortage of contractors and installers who will be eager to help you install your residential solar system.

As with any major home improvement project, different installers have their own rates, oftentimes correlated with the quality or even speed of their work, and it’s up to the customer to do their homework to evaluate potential installation companies. Simply going with the lowest-cost installation company may not be wise if it isn’t reputable, but at the same time, certified local installers may charge lower prices to compete with big-name national installers.

Our best advice is to look at the best solar companies in Arizona, research what deals or specials are available, and talk to neighbors or look at online reviews to find a company that offers you a good price and will deliver the quality of work you need.

Public policy leaders have done a fair job of offering financial incentives that lower the cost of solar in Arizona. Although the state’s net metering program was phased out in 2016, there are still a number of tax credits and incentives available to homeowners. These include:

Similarly, most upgrades to homes will increase the value of the home, and that value is what is taxed via property taxes. Arizona, however, excludes the value increase from solar panels when evaluating how much property tax you must pay.

Here is a list of preferred partners in this area.

At EcoWatch, we’re happy to get questions about the process and costs of getting rooftop solar from Arizona residents. Below are some of the questions we see most often, along with our responses. If you have specific questions that aren’t answered here, reach out to our team of solar experts at solar@ecowatch.com.

The average payback period for solar panels is about eight years, and the average lifespan of a system is about 25 years. The payback period can be greater or shorter depending on the size of installation, tax incentives utilized and total cost paid by the customer.

The average home needs about 20 to 25 solar panels to offset 100% of energy needs. However, that figure will vary widely based on the energy used by the home, the size and efficiency of the panels, how much shade falls onto the panels from nearby buildings or trees, and other factors.

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