Solar panels in Arizona
What a residential solar system actually costs in Arizona in 2026 — plus incentives, payback, and how to pick a vetted installer.
The real cost of solar in Arizona
A typical 11 kW rooftop system in Arizona runs about $28,050 installed. The federal Residential Clean Energy Credit knocks 30% off — around $8,415 — bringing the net price to roughly $19,635.
Arizona adds its own incentive: 25% up to $1,000. Stack that on top of the federal credit. Arizona also exempts solar from both property and sales tax.
What you'll produce — and save
- ~20,878 kWh/year from a 11 kW system at 6.5 peak sun hours.
- At 14.8¢/kWh that's $3,090/yr off your electric bill in year one.
- Estimated payback: 6.4 years.
- 25-year net savings (2.5% annual rate escalation): $85,912.
Estimates only. Actual production depends on roof orientation, shade, equipment and your utility's specific tariff.
Net metering in Arizona
Arizona operates under a net billing policy for residential solar exports. Exports are credited at a wholesale/avoided-cost rate rather than the retail rate. Batteries usually improve payback under this policy.
Top Arizona metros we cover
FAQ
How much do solar panels cost in Arizona?
A typical 11 kW residential system in Arizona costs about $28,050 before incentives, or roughly $2.55 per watt installed. After the 30% federal tax credit that drops to about $19,635.
Is solar worth it in Arizona?
With an average residential electricity rate of 14.8¢/kWh and 6.5 peak sun hours per day, a properly sized system typically pays for itself in about 6.4 years and saves roughly $85,912 over 25 years.
Does Arizona have net metering?
Arizona operates under a net billing policy for residential solar exports. Exact credit values vary by utility — always confirm with the specific utility serving your address.
What state incentives are available in Arizona?
State incentive: 25% up to $1,000. Property tax exemption: Yes. Sales tax exemption: Yes. The 30% federal Residential Clean Energy Credit also applies.
Get vetted Arizona installer quotes.
SolarPros only lists installers who pass our licensing, insurance and reputation checks. Free to request — no pressure.
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Sources: EIA average residential electricity rates, NREL PVWatts sun hour data, DSIRE state incentive database, LBNL "Tracking the Sun" installed-cost benchmarks. Figures are estimates for guidance only, not a binding quote.