Solar Panel Cost in Arizona
Average costs, savings estimates, and incentives for Arizona homeowners — plus free installer quotes.
Solar in Arizona: Overview
Arizona homeowners who go solar can expect to pay around $22,000 for a typical 7.3 kW system before incentives. Note: the 30% federal residential solar tax credit expired December 31, 2025. State and local incentives may still reduce your net cost.
With average annual electricity savings of $1,800, the typical payback period in Arizona is 8.6 years. Over 25 years, that represents a return on investment of approximately $29,600.
Arizona's sun score of 95/100 reflects the region's solar irradiance. The state also offers 25% state tax credit, which can further reduce your upfront costs.
Solar Incentives in Arizona
Expired December 31, 2025 — no longer available for new residential installs
State-specific program for Arizona residents
Many states exempt solar from property tax assessments
Sell excess power back to the grid at retail rates
Frequently Asked Questions — Solar in Arizona
How much do solar panels cost in Arizona?
The average solar installation in Arizona costs approximately $22,000 before incentives. Note: the 30% federal residential solar tax credit expired December 31, 2025. State and local incentives may still apply in your area. Prices vary by system size, installer, and equipment quality.
How much can I save with solar in Arizona?
Arizona homeowners save an average of $1,800 per year on electricity with solar. Over 25 years, that's a potential return of $29,600 after accounting for your net system cost.
What solar incentives are available in Arizona?
Arizona offers 25% state tax credit. Note: the federal 30% residential ITC expired December 31, 2025. Check with your utility company for additional rebates and state programs.
How long is the solar payback period in Arizona?
Based on average costs and savings, the typical payback period in Arizona is approximately 8.6 years. After payback, your solar panels continue generating free electricity for 15–20+ more years.
Is solar worth it in Arizona?
With a sun score of 95/100 and average annual savings of $1,800, solar is an excellent investment in Arizona. The 25% state tax credit further improves the economics.