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Phoenix Solar Panels: Cost and Local Incentives

Written by Sean Jackson /

Edited by Hannah Whatley

Last updated 08/26/2022

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Get an estimate of solar cost and savings at your home.

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Get an estimate of solar cost and savings at your home.


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Phoenix solar panels

Arizona is a burgeoning state for solar panels, scoring fifth nationally only behind California in generating solar energy. With the growing market, installing solar panels in your Phoenix home is a great choice. In the hot, sunny summers, you could save money on your energy bills and gain a sense of energy independence. Learn more about the costs of solar panels in Phoenix, incentives for installing solar, and answers to some common questions.

Ready to go solar? Call 866-623-7782to be connected with a solar expert today!

Cost of solar panels in Phoenix

The average national cost for residential solar panels before incentives is $24,742. Phoenix falls in line with those averages, with prices between $2.88 and $4.57 per watt. This means the average price for a residential system can range from $16,600 to $52,000, depending on your energy consumption and needs. The great news is that solar prices have fallen by 50% over the last 10 years in Arizona, so now is an excellent time to secure an affordable deal.

How much do solar panels cost in Phoenix in 2022?

The average cost of solar panels in Phoenix is $3.76 per watt, and the average size of an Arizona residential system is 8.25 kilowatts. The resulting cost for residential systems comes out to around $31,000, with a payback period of six to nine years.

However, since solar panels can last 25–30 years, you need to ensure your roof can hold up for that long. If it isn’t, you might need to replace your roof, which will add to your total cost..

Average solar panel cost by system size in Phoenix

The national average cost per watt is $3.82. Here is the range of costs in Arizona:

High$4.5711.4 kW$52,043
Median$3.768.2 kW$31,046
Low$2.885.8 kW$16,613

If you buy and install your solar panel system on your residence by 2032, you’ll be eligible for the Residential Clean Energy Credit, a 30% tax credit on solar purchases recently put in place with the Inflation Reduction Act. It can also be applied to the purchase of a solar system from the beginning of 2022. The tax credit accounts for all solar panel costs, such as labor, parts, and installation charges.

Get your free solar savings estimate

You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.

Incentives for solar panels in Phoenix

As noted above, you can save on your total solar investment by claiming the federal tax credit when you file your income taxes. This is why taking advantage of tax incentives is vital because they drive your costs down now and in the future. For example, Arizona offers a Residential Solar Energy Tax Credit of 25% of the total cost of the solar system purchase with a $1,000 maximum benefit.

IncentiveLocal, State, or Federal?Incentive Details
Residential Clean Energy CreditFederalThis 30% federal tax credit can be applied to the purchase of solar systems from the beginning of 2022 to 2032.
Net BillingStateArizona offers customers of private utilities to receive non-retail rate bill credits on excess energy their solar systems produce.
Arizona Residential Solar Energy Tax CreditState25% of solar panel costs goes to total taxes owed to the state with a $1,000 maximum benefit

Solar companies in Phoenix

When you’re ready to install solar panels, SaveOnEnergy can help. We provide a wealth of resources to assist you in making your decision easier, such as where to find the best solar panels and solar batteries as well as the challenges facing the solar industry. If you have any questions, contact our specialists at the number provided on this screen. You can also fill out this form to learn more about the solar energy companies near you.

Is going solar in Phoenix right for you?

There are several ways of obtaining solar panels for your home, condo, or apartment. You can finance them directly with the solar energy company, lease them, partner with neighbors for community solar, or do a solar power purchase agreement. With a PPA agreement, you agree to have a company install the solar panels on your home with little to no upfront expenses, but the company also receives the tax credits for it.

Solar for renters

If you’re renting an apartment or home, you must obtain permission from your landlord before pursuing solar. Your best options are to choose a portable solar unit or subscribe to a community solar program.

Solar for homeowners

For homeowners, there are more options. You will get the most savings when you finance or buy the system outright. That way, you receive all the benefits, such as tax incentives, and you can sell excess power back to Phoenix utility companies through net metering. A solar PPA might be wise if you owe taxes and wouldn’t receive the benefit. That way, you receive energy savings without the upfront expenses.

Community solar

Community solar is where subscribers band together to share in the costs of a solar energy system and the energy-saving benefits. You can often find this in communities like condos or apartments. With community solar, you don’t have to fork over a ton of money to pay for the system and will still receive lower energy costs.

Solar power FAQs

  • The costs range from $16,600–$52,000, depending on the size of your home. If you need to replace your roof before installation, that will add to the expense.

  • Solar power can be a wise investment for many consumers. Despite the high upfront costs, the federal government and Arizona offer tax incentives to help you recoup some of that. Moreover, Phoenix residents can save as much as $25,000 in energy costs over 20 years with solar panels.

  • SaveOnEnergy can assist you. Fill out the solar energy form or give our energy specialists a call with the number on this screen for assistance.

  • Solar energy is a renewable resource as well as a green energy source,  which means it doesn’t emit pollutants like carbon dioxide into the air. You lower your carbon footprint and lessen your dependence on fossil fuels from utilities — which can emit pollutants.

Solar energy by state

Is solar right for your home?
Get an estimate of solar cost and savings at your home.