Solar Panel Cost in Phoenix, AZ
Average solar installation in Phoenix costs $24,514 before tax credits ($17,160 after 30% ITC). Phoenix gets 6.5 peak sun hours/day.
Phoenix 7kW System
$24,514
$17,160 after 30% ITC
Peak Sun Hours
6.5 hrs/day
Excellent solar potential
Est. Payback Period
10 years
at avg electricity rates
Solar Panel Cost in Phoenix by System Size — 2026
| System Size | Before ITC | After 30% ITC |
|---|---|---|
| 5 kW (small home) up to 600 kWh/mo | $17,405 | $12,184 |
| 7 kW (average home) 700–900 kWh/mo | $24,514 | $17,160 |
| 10 kW (large home) 900–1,200 kWh/mo | $35,055 | $24,539 |
| 12 kW (very large) 1,200+ kWh/mo | $41,919 | $29,343 |
Prices include equipment, installation, and permitting for Phoenix. ITC applies as a dollar-for-dollar federal tax credit.
Is Solar Worth It in Phoenix? A 2026 Analysis
Phoenix Solar Resource
Phoenix receives 6.5 peak sun hours per day on average. This is outstanding — among the best solar resources in the US. High sun exposure means you need fewer panels for the same output, reducing system size and cost.
Arizona Net Metering
Net metering policy determines how much your utility pays for excess solar power. Arizona's net metering rules directly affect your financial return in Phoenix. Full retail credit (what you pay per kWh = what you receive for exports) maximizes savings. Some utilities have reduced or eliminated net metering — check with your local utility before purchasing.
Financial Projections for Phoenix
A typical 7 kW solar system in Phoenix at $17,160 (after ITC) saves approximately $1,800/year at average electricity rates. That's a 10-year payback period. Over 25 years, the system generates roughly $27,840 in net savings above system cost.
Get Free Solar Quotes in Phoenix
Compare Phoenix solar installers and save an average of $3,000–$8,000 by getting competing bids.
FAQs — Solar Panels in Phoenix
The average solar panel installation in Phoenix, Arizona costs $24,514 for a typical 7 kW system. After the 30% federal Investment Tax Credit (ITC), the net cost is $17,160. With 6.5 average peak sun hours per day, Phoenix has excellent solar potential.
Solar is an excellent investment in Phoenix with 6.5 peak sun hours/day. At average electricity rates, a properly sized system typically pays back in 10 years and generates savings over a 25-year lifespan. Check Arizona's net metering policy — full retail credit makes solar significantly more valuable.
Phoenix solar owners can access: 1) Federal 30% Investment Tax Credit (through 2032) — saves $7,354 on a typical system; 2) Arizona state incentives — check your state's database for additional credits and rebates; 3) Local utility rebates — contact Phoenix's utility provider; 4) Net metering — get credit for excess power sent to the grid.
In Phoenix with 6.5 peak sun hours/day, a home using 900 kWh/month needs approximately 6 solar panels (400W each) — about a 2.4 kW system. Your solar installer will size the system based on your actual utility bills and roof conditions.
To find a trustworthy solar installer in Phoenix: verify AZ contractor licensing, check NABCEP certification (the gold standard for solar installers), read Google and BBB reviews, get at least 3 quotes, and use EnergySage's marketplace — it connects you with pre-screened Phoenix installers competing for your business, which typically saves $3,000–$8,000 vs. going direct.