Table of Contents
- How much do solar panels in Arizona cost?
- Solar panel pricing vs electricity costs in Arizona
- Average solar panel costs by system size in Arizona
- Current solar incentives & rebates in Arizona
- Is Arizona good for solar?
- What not having solar panels in Arizona will cost you
- What does the cost of solar panels in Arizona depend on?
- Solar panel cost FAQs for Arizona
How much do solar panels in Arizona cost?
Going solar in the month of November, 2024 in Arizona averages out to $2.79/W.
You should expect the price to be $2,790, on average, for every 1kW (or 1000 watts) of solar energy your solar panel system can produce. A 5kW panel install in Arizona will typically cost you $9,765 after the 30% federal tax credit. Your energy consumption levels might require a larger system.
Solar panel pricing vs electricity costs in Arizona
Across Arizona, the average electric bill for an energy user is $157.96, with an average monthly usage of 1,069kWh. Compact residences, including duplexes, are also reflected in the numbers cited in the prior sentence.
In November 2024, the electricity rate in Arizona averages 14.78¢ per kWh.
The average electricity consumer in Arizona has to have 8kW or higher solar setup to take care of their full energy usage demands. Currently, 8kW setup costs $15,624 after deducting the 30% federal income tax credit.
Average solar panel costs by system size in Arizona
Presented below, you will find a price breakdown for multiple solar panel system sizes set up in Arizona. Although a more extensive solar installation comes with a larger expense, it also provides greater electricity savings and higher income tax credits.
| System Size | Roof Size Min. space required | Electricity Value Annual Production | Est. Price |
|---|---|---|---|
| 4kW | 286 ft² | $1,059 a year | $7,812 |
| 5kW | 358 ft² | $1,324 a year | $9,765 |
| 6kW | 429 ft² | $1,589 a year | $11,718 |
| 7kW | 501 ft² | $1,853 a year | $13,671 |
| 8kW | 572 ft² | $2,118 a year | $15,624 |
Current solar incentives & rebates in Arizona
The REAP Grant can fund anywhere from 80% to 100% of the expenses associated with setting up solar energy or wind turbines for rural small businesses and farmlands.
For those looking into residential solar, the 30% federal income tax credit is offered to most people, which makes solar a feasible option in many states. In conjunction with federal efforts, state and local programs help to promote the use of solar power.
In Arizona, 23 solar rebates and incentives are currently available from different utilities and government agencies.
Is Arizona good for solar?
If you expect to own your residence longer than the solar system's payback period, solar panels are a smart investment in Arizona. Installing a 5 kW solar system in Arizona will, on average, save you $28,145.44 over 20 years, and you can expect to break even in about 5 years.
What not having solar panels in Arizona will cost you
Not installing solar panels or any other backup energy system leads to missing the previously noted savings and full dependence on your electric utility for electricity. Recent news examples have shown that full reliance on your utility provider is not always ideal.
Over the past few years, customers in Arizona have faced an average of 0.88 utility outages each year. On average, each outage lasts for 80.09 minutes. Major events like vandalism, aging infrastructure or wildfires can considerably extend these durations.
With or without a backup battery, a solar panel system could ease the stress of future power disruptions you might experience.
What does the cost of solar panels in Arizona depend on?
- Your Energy Needs
- Make & Model
- Solar Panel Type
- Your Property
- Labor Rates
- Permitting & Interconnection
Bigger solar panel systems are more expensive, but the cost per watt decreases as well. A larger system that can completely cover your typical electricity bill would lead to the biggest savings long-term.
Solar panel cost FAQs for Arizona
What do solar panels cost in Arizona?
As of November, 2024, the average solar panel installation cost in Arizona has reached $2.79/W. After federal tax credits, the installation of a 5 kW solar panel system in Arizona is estimated to cost $9,765.
What incentives are available for solar in Arizona?
If you live in Arizona, you can find 23 rebates and incentives through different utilities and government agencies. Furthermore, almost all individuals are entitled to the 30% federal income tax credit.
What solar financing options are available to me?
While paying cash provides the most savings, various financing options for solar panels exist that also make financial sense. Financing options from installers will often be detailed in your initial quotes.
Is it worth it to get solar panels in Arizona?
Yes, on average, 5 kW solar panels in Arizona pay for themselves in 5 years, with homeowners saving approximately $28,145.44 on electricity over 20 years.
Will Arizona pay you to get solar panels?
While Arizona does not currently provide payments for solar installations, all U.S. residents can utilize the 30% federal income tax credit for such projects.
Can you get free solar panels in Arizona?
In Arizona, there are no free solar panel programs yet, but the 30% federal income tax credit, which most US citizens can access, greatly reduces the cost of installing solar panels.