skyline of northern phoenix with a house with solar panelsHow Much Do Solar Panels Cost in Arizona?

Solar panels can save you a ton of money on your electric bills, but how much do they cost to install? 

It’s a tough question to answer. Solar panel installation costs can vary significantly from one place to another and can even be drastically different for two houses in the same neighborhood. 

SouthFace Solar & Electric has been installing residential solar panels in Arizona since 2008. We created this guide to help you learn more about the cost of solar panels so you can decide whether they’re worth it for your home. 

Keep in mind that the best way to find out how much solar panels will cost for your home is with a personalized estimate. Contact us today to get your free, no-pressure solar estimate

Average Cost of Solar Panels in Arizona 

It’s impossible to say exactly how much your solar panel installation will cost without assessing your roof and electricity usage. But you can look at average costs to get a better idea of what you can expect to spend on solar panels. 

In Arizona, most homeowners pay around $2.37 per watt when installing solar panels. That adds up to $16,590 for a 7 kW system, which is a pretty typical size. You’ll save 30% with the federal solar tax credit (more on that below) bringing your costs down to $11,613 for this example. 

Arizona Solar Trends: Is the Price of Solar Panels Dropping? 

The cost of a solar panel installation has decreased dramatically over the past decade. In Arizona, solar prices have fallen by 43% over the past 10 years according to the Solar Energy Industries Association.

Meanwhile, electricity rates have been rising steadily. The average cost of electricity in Arizona rose from 13.07 cents per kW to 14.13 cents per kW between July 2022 and July 2023 according to data gathered by the US Energy Information Administration. That’s a 7.5% increase in just one year! 

Going solar protects you against rate increases so you never have to worry about inflation and price hikes driving up your electricity costs.  

What Impacts Solar Panel Costs

Many factors impact solar installation costs in Arizona, including: 

System Size & Complexity 

Solar panel installation costs depend heavily on the size and complexity of your project. If you live in a big house with an intricate or poorly angled roof, for example, you will need a large solar system and a complicated design, which will increase your costs. If you live in a small home with a simple roof, or if the angle of your roof is more ideal for solar production in your area, you will need fewer solar panels and a less complicated design, which will ultimately cost less. 

Solar Panel Type & Brand 

The type and brand of solar panels you choose to install will impact your cost. Many manufacturers make solar panels, inverters, and batteries. Quality—and cost—varies by manufacturer. 

Solar Batteries 

Solar battery storage is an optional addition to your solar panel system. With a battery, you will be able to use your solar panels during a power outage, which is an invaluable benefit. But batteries are an investment and they will add to the cost of your solar panel installation. 

Solar Installation Company 

There are many solar panel installation companies in Arizona, and rates vary from one to the next. It’s always a good idea to contact several companies and compare quotes when making a large purchase, and solar panels are no exception. But keep in mind that you’re looking for the best value, not the lowest cost. A high-quality solar installer may charge more, but they won’t damage your roof or leave you with a half-finished system they never come back to complete. 

Arizona Home Solar Incentives 

Solar panels save you money, but the benefits are far greater than individual energy savings. Because they have such widespread benefits, the federal government offers incentives to help you pay for your solar panel installation. 

The Federal Solar Tax Credit 

The solar tax credit (also known as the investment tax credit) is a solar incentive that reduces your federal tax liability by 30% of your solar installation costs. With the tax credit, you essentially earn back 30% of your upfront investment when you file your tax return for the year you install your solar panels.  

Check out our Guide to the Federal Solar Tax Credit to learn more. 

Solar and Wind Equipment Sales Tax Exemption

Solar panels and battery storage systems are exempt from sales tax in Arizona, saving you 5.6 percent. 

Energy Equipment Property Tax Exemption

Solar panels can increase your home’s value, but they won’t increase your property taxes. 

The Bottom Line: Are Solar Panels Worth the Cost? 

When you take all the factors into account, solar panels are absolutely worth the cost in Arizona. Solar installation costs have decreased steadily in recent years while electricity rates have only gone up. Meanwhile, the solar tax credit is the highest it has ever been, making now an extremely opportune time to buy solar panels. 

SouthFace Solar & Electric is the leading local solar installer in Arizona. Our goal is to provide the most accurate and up-to-date information about solar energy in Arizona so you can make an informed decision when investing in solar panels for your home. 

If you have any questions about home solar panel installation, we are always here to help. Give us a call or request your free solar estimate and we will put together a customized proposal based on your specific needs. 

Get a free, customized quote for your Arizona solar panel installation. Call 480-405-6105 or contact us.

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