SunPowerPeek

ArizonaSolar Panel Costs & Savings

Arizona averages 6.5 hrs of peak sun per day with an average payback period of 6.8 years. Homeowners can save $42,500 over 20 years.

Peak Sun Hours

6.5 hrs

per day

6kW System Cost

$16,200

before incentives

Payback Period

6.8 yrs

average

20-Year Savings

$42,500

estimated

Solar Cost Breakdown in Arizona

ItemAmount
6kW System Cost ($2.7/W)$16,200
Federal Tax Credit (30%)-$4,860
State Tax Credit (25%)-$4,050
State Rebate-$1,000
Net Cost$6,290

Net Metering

Full Net Metering

Electricity Rate

14.78¢/kWh

Avg Monthly Bill

$142/mo

Solar Incentives in Arizona

Arizona Net Metering

Arizona utilities offer net metering that credits solar owners at retail electricity rates for excess generation.

Retail rate credit
net metering

Federal Solar Investment Tax Credit (ITC)

The federal ITC allows homeowners to deduct 30% of solar installation costs from federal taxes. Available for systems installed through 2032, stepping down to 26% in 2033 and 22% in 2034.

30% of system cost
tax creditExpires: 2034-12-31

Arizona Residential Solar Tax Credit

Arizona offers a personal income tax credit of 25% of the cost of a solar energy device, up to $1,000.

25% up to $1,000
tax credit

View all state solar incentives

Solar Potential by ZIP Code in Arizona

ZIPCitySun HoursAnnual SavingsPayback
85701Tucson6.7 hrs$1,7836.4 yrs
85001Phoenix6.6 hrs$1,7566.5 yrs
85301Glendale6.6 hrs$1,7566.5 yrs
85251Scottsdale6.6 hrs$1,7566.5 yrs
86401Kingman6.5 hrs$1,7306.6 yrs
85201Mesa6.5 hrs$1,7296.6 yrs
85281Tempe6.5 hrs$1,7296.6 yrs
85381Peoria6.5 hrs$1,7296.6 yrs
85202Mesa6.5 hrs$1,7296.6 yrs
85224Chandler6.5 hrs$1,7296.6 yrs
85601Nogales6.4 hrs$1,7036.7 yrs
85501Globe6.3 hrs$1,6766.8 yrs
86301Prescott6.2 hrs$1,6506.9 yrs
86001Flagstaff6.0 hrs$1,5967.1 yrs
86505Window Rock6.0 hrs$1,5967.1 yrs
85901Show Low5.9 hrs$1,5707.2 yrs

Compare With Other States

More Data for Arizona

Frequently Asked Questions

How much do solar panels cost in Arizona?

A typical 6kW solar system in Arizona costs approximately $16,200 before incentives. After the 30% federal tax credit ($4,860) and state incentives, the net cost is approximately $6,290.

How long does solar take to pay for itself in Arizona?

The average solar payback period in Arizona is 6.8 years, faster than the national average of 9.4 years. After payback, homeowners enjoy free electricity for the remaining system life.

Does Arizona have net metering?

Arizona has full net metering. Homeowners receive full retail rate credits for excess solar energy sent to the grid.

How much sun does Arizona get for solar?

Arizona averages 6.5 peak sun hours per day, which is 2.0 hours above the national average. A 6kW system produces approximately 14,235 kWh per year.

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Data verified March 2026 · Source: NREL, DSIRE, EIA