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Check your credit before financing solar panels
The average cost of solar panels is between $18,000 and $43,000
Average solar panel installation costs generally start between $10,227 and $20,455 in Arizona.
On the higher end, Patrick in Tucson said his system cost $36,000, and Simin in Scottsdale paid over $40,000 for a large solar panel system.
Thanks to plenty of sunlight and relatively low solar installation costs, going solar in is usually worth it in the Grand Canyon State. On average, Arizona homeowners with solar panels avoid $65,970 in total utility costs over 25 years.
But it doesn’t work out for everyone. This article explains what to consider before making the switch to solar energy.
Going solar is like getting a new car. You could pay cash, but most people finance or lease with minimum upfront costs.
Compare quotes from at least three to four different solar companies before making a decision.
Assuming an upfront purchase, it takes about 10.91 years to break even (when your savings with solar panels make up for the cost).
Before considering any incentives, a typical solar panel system costs $10,227 to $20,455 in Arizona. Average prices in Phoenix are comparable, ranging from $10,136 to $20,273. It costs between $10,233 and $20,466 to go solar in Tucson.
System size, whether or not you want to add an energy storage battery and the condition of your roof can have a big impact on the overall costs.
Average solar panel costs by system size in Arizona
NOTE: The estimated costs above do not include the price of a solar storage battery. Adding a battery can double your total costs.
Get quotes from at least three to four different solar companies in Arizona. Make sure the estimated price includes all the equipment you want, labor, permits and grid hookup. Watch for hidden fees for system monitoring or maintenance service charges.
Most installers set the price according to the system’s wattage. Similar to “cost per square foot” when buying a house, “cost per watt” allows you to compare the relative value of a solar panel system. It shows you the per-dollar price of your system’s energy production potential.
According to our latest research, the average cost per watt is $2.05 in Arizona.
Solar panel costs in Arizona
Lots of sunshine and generally solar-friendly policies make solar panels worth it for many homeowners in Arizona. One resident, Ray in Queen Creek, installed 18 solar panels on his 2,706-square-foot single-unit home in 2022. The system cost $14,000 after government incentives and rebates.
When we followed up with him to ask about his savings since switching to solar, he said his system consistently generates more than 1,000 kilowatt-hours (kWh) per month.
During the summer, he pays about $100 each month, even after weeks of triple-digit temperatures (significantly lower than his neighbor’s $600 bill). “My neighbors can’t believe what I’m paying,” he said. In the cooler months, his bill drops to under $30.
Ray’s advice to other Arizonans going solar: Do your research, especially regarding the choice of solar panels and the warranties offered. Use the National Renewable Energy Laboratory (NREL) PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house.
How much you pay to go solar largely depends on the size of your system, the equipment you want and the condition of your roof. Local permits and fees are a small part of your overall costs.
A typical Arizona household needs about a 7 kW system, which costs $14,350 on average. Depending on your household’s energy needs, you might need a smaller or larger system.
How to estimate what system size you need: First, look at your electric bill. It should say how many kilowatt-hours (kWh) you used last year. Then, divide that number by 1,200 to estimate your system size in kilowatts (kW).
For example, if you used 12,000 kWh of electricity last year, you would need a 10-kW system. If you used 10,800 kWh, you would need a 9-kW system.
Upgrade old appliances with more eco-friendly ones before you go solar. If you use less electricity, you need fewer solar panels, which makes the entire system more cost-effective.
» WATT’S THE DIFFERENCE? kW vs. kWh
The equipment — panels, inverters, mounting hardware and other electrical accessories — is typically the largest portion of your overall solar costs (approximately 25% to 50%).
High-quality solar panels last 25 to 30 years, and your roof needs to last just as long.
ConsumerAffairs often hears from disgruntled solar customers who feel blindsided by expensive roof repairs needed after their solar panel installation was complete. This is a frustrating and expensive process — avoid it if you can.
“It took them more than six weeks to get a crew out to uninstall the panels and another three-plus weeks of constantly calling to schedule the reinstall after the roof was replaced,” Iqbal in Phoenix wrote in a review. “Not to mention that the removal and reinstall is costing me nearly $10,000 to get completed.”
Another solar customer, Cheryl in Florence, told us, “To replace the roof, the panels have to come off and must go back on for a cost of $3,900 in addition to the cost of the roof.”
» SHOULD YOU: Replace your roof before going solar?
Labor, which includes planning, preparing and connecting your solar system to the grid, accounts for 10% to 30% of total costs. Solar equipment costs are going down, but labor costs are still relatively high in some parts of the state.
You might be tempted to install the system yourself. DIY solar panels are cheaper, but there are potential issues: Incorrectly installed solar panels can cause roof leaks, electrical safety risks and other dangerous problems.
You will need permits from your municipality before you begin work on your solar project. These fees range from $150 to $600 in most places in Arizona. The process is different depending on where you live in Arizona. For instance, you can submit your permit online in Maricopa County and through an app in Oro Valley.
Solar panels are relatively cheap to keep up with. If you clean the solar panels yourself, the only maintenance cost will be the water used to hose them down. Hiring a professional to clean your solar panels typically costs between $100 and $350.
If you have an electric car, ask about EV charger options. Homeowners in more rural parts of Arizona should also consider critter guards to protect the panels.
» RELATED: How many solar panels do you need for your house?
Whether going solar is worth it also depends on where you live in Arizona. Areas in the southwestern part of the state tend to get more sunlight than the northeast.
Since solar panels generate more power with more sunlight, this can affect the financial returns on your investment.
» STILL NOT SURE? Solar energy pros and cons
Financing options and leasing programs make going solar much more affordable for the average Arizonan. In an ideal scenario, your solar power system generates enough extra power to cancel out your monthly payment.
» SOLAR PANELS: Lease vs. buy
With the federal solar tax credit expiring, it makes sense to take advantage of as many solar incentives in Arizona as possible, such as:
You might also be eligible for local incentives. Mohave Electric Cooperative has a rebate program for homeowners investing in renewable energy, and the City of Scottsdale has a green building program encouraging residents to reduce their energy consumption.
The best solar companies make it easy to switch, and customers are generally happy with their system’s performance.
Simplify your search
Switch to solar with a system built for you.
Expect it to take at least a couple of months from when you first contact a solar company to when you’re actually generating power. “It almost takes a year to install the damn thing,” Ray in Queen Creek said, “because you have to have approval from the county, approval from SRP; approval from HOA took almost two months.”
Net metering lets homeowners sell excess electricity generated by their solar panels to the grid, further offsetting the cost of electricity. Instead of traditional net metering, which credits solar system owners at the full retail electricity rate for excess power sent to the grid, Arizona has transitioned to a “net billing” system.
Under net billing, homeowners are still credited for the excess electricity their solar panels produce and export to the utility grid. However, the credit rate is set at an “avoided cost” rate rather than the full retail rate.
The goal of net metering or net billing is to incentivize renewable energy by letting homeowners store their excess solar energy in the grid to be used later. This can lead to savings on electricity bills as homeowners are only billed for their net energy use — the difference between what they consume from the grid and what they generate.
Going solar has many financial advantages, but there are some potential disadvantages to consider:
The difference comes down to efficiency and materials: monocrystalline panels are made from pure, single silicon crystals, whereas polycrystalline panels are made from various silicon fragments melted together. Both are types of photovoltaic (PV) solar panels.
We’re not aware of a totally free solar option in Arizona. Unfortunately, scams that promise free solar panels can end up costing people quite a bit of money. However, you can lease solar equipment with minimal upfront cost.
Home solar system costs typically range from $10,000 to $30,000 or higher, depending on factors such as the system’s size, local labor rates and available incentives.
The ConsumerAffairs Research Team has conducted extensive research to compare the costs of going solar in Arizona and other states.
Solar costs vs. savings: Arizona and nearby states
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