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
| Item | Amount |
|---|---|
| 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.
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.
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.
Solar Potential by ZIP Code in Arizona
| ZIP | City | Sun Hours | Annual Savings | Payback |
|---|---|---|---|---|
| 85701 | Tucson | 6.7 hrs | $1,783 | 6.4 yrs |
| 85001 | Phoenix | 6.6 hrs | $1,756 | 6.5 yrs |
| 85301 | Glendale | 6.6 hrs | $1,756 | 6.5 yrs |
| 85251 | Scottsdale | 6.6 hrs | $1,756 | 6.5 yrs |
| 86401 | Kingman | 6.5 hrs | $1,730 | 6.6 yrs |
| 85201 | Mesa | 6.5 hrs | $1,729 | 6.6 yrs |
| 85281 | Tempe | 6.5 hrs | $1,729 | 6.6 yrs |
| 85381 | Peoria | 6.5 hrs | $1,729 | 6.6 yrs |
| 85202 | Mesa | 6.5 hrs | $1,729 | 6.6 yrs |
| 85224 | Chandler | 6.5 hrs | $1,729 | 6.6 yrs |
| 85601 | Nogales | 6.4 hrs | $1,703 | 6.7 yrs |
| 85501 | Globe | 6.3 hrs | $1,676 | 6.8 yrs |
| 86301 | Prescott | 6.2 hrs | $1,650 | 6.9 yrs |
| 86001 | Flagstaff | 6.0 hrs | $1,596 | 7.1 yrs |
| 86505 | Window Rock | 6.0 hrs | $1,596 | 7.1 yrs |
| 85901 | Show Low | 5.9 hrs | $1,570 | 7.2 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