Solar panels in Arizona: cost & savings
Arizona averages 6.5 peak sun hours/day and $0.15/kWh electricity. Here's what solar looks like for a typical home.
Typical Arizona home estimate
| Average electricity rate | $0.15/kWh |
| Peak sun hours (daily avg) | 6.5 |
| Recommended system size | 5.7 kW (~14 panels) |
| System cost (before incentives) | $17,071 |
| Cost after 30% federal tax credit | $11,949 |
| Estimated payback period | 6.9 years |
| 25-year net savings | $43,279 |
Incentives: 25% state tax credit (up to $1,000); sales/property-tax exemptions. The 30% federal tax credit applies in every state. Statewide net metering is limited — check your specific utility.
How Arizona compares to the rest of the US
Two numbers drive solar economics: your electricity rate and how much sun your roof gets. Here's where Arizona stands against the national average.
| Electricity rate | $0.15/kWh (10% lower than the $0.17 US avg) |
| Daily peak sun hours | 6.5 (46% more than the 4.5 US avg) |
| Net metering | Limited / utility-specific |
Arizona enjoys plenty of sun but relatively cheap electricity. The abundant sunshine means a smaller system can cover your usage, though the lower rates mean each kWh you save is worth a bit less — so the bigger your monthly bill, the better solar pencils out.
Calculate your own Arizona savings
Adjust the numbers to match your actual electric bill:
Estimate your solar savings
Two quick inputs. We use your state's real electricity rate and sun hours.
Is solar worth it in Arizona?
With Arizona's electricity at $0.15/kWh and 6.5 daily sun hours, a typical solar system pays for itself in about 6.9 years and produces an estimated $43,279 in net savings over its 25-year life, after applying the 30% federal Investment Tax Credit. The higher your bill and the more sun your roof gets, the faster the payback.
These figures are estimates. Get free quotes from local Arizona installers to see real pricing for your roof.
Arizona solar FAQ
How many solar panels do I need in Arizona?
A typical Arizona home needs roughly 14 standard 400-watt panels (about a 5.7 kW system) to offset its electricity use, given Arizona's 6.5 daily peak sun hours. A higher bill or shadier roof pushes that number up.
Does Arizona have net metering?
Arizona doesn't have broad statewide retail-rate net metering, but many utilities run their own buyback or billing programs, so check your specific provider. 25% state tax credit (up to $1,000); sales/property-tax exemptions. The 30% federal tax credit applies in every state.
What's the payback period for solar in Arizona?
For a typical $135/month bill, the estimated payback is about 6.9 years, after which the power your panels produce is essentially free for the remaining ~18 years of the system's life.