Arizona solar panels: The complete guide in 2026
Data updated Dec 26, 2025
Interested in going solar? You'll need to install a 13.88 kW solar panel system to cover the average electric bill in Arizona, which will cost you about $29,130.
Cost for an average system in Arizona
| Cash price | $29,130 |
| 25-year savings | Payback period | Electricity offset |
|---|---|---|
| $43,351 | 12 Years | 98% |
Some states, towns, and utility companies offer incentives that can help lower the cost of solar.
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Going solar in Arizona
Looking to power your home with clean, sustainable energy that’ll boost your energy independence? Arizona is the sunniest state in the United States, so installing solar panels makes a lot of sense: They'll reduce your carbon footprint and your reliance on the utility electric grid.
Factor in the federal solar tax credit and Arizona's state tax credit, and Arizonans can cut the cost of solar by thousands of dollars, speeding up their payback period and increasing the value of their investment.
Here's what you need to know about going solar in the Grand Canyon state.
Cost
How much do solar panels cost in Arizona?
Solar panels will save you a lot of money over time, but the upfront costs aren't cheap. The average Arizona homeowner needs a 13.88 kW solar panel system to cover their electricity needs, which comes out to $29,130 before incentives. Prices range from $24,760 to $33,500, but Arizona also has some great local incentives.
While this may sound high, it will pay off in Arizona. That's why over 39,000 Arizona homeowners have used EnergySage to receive and compare quotes for solar installations. You can expect to earn back your initial solar investment through electricity savings in about 11.57 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period.
There are a few ways to finance your solar panel system so you don't have to provide all that money upfront.
Cash purchase: You'll own the system and pay for it up front. This provides the best long-term savings.
Solar lease or power purchase agreement (PPA): A third-party company owns your system and either leases you the solar panels (solar lease) or allows you to purchase the electricity they generate (PPA). These typically deliver immediate savings and can make a lot of sense if you’re looking to keep your capital flexible. Just make sure to choose an offering with low annual escalators to ensure it will continue to provide long-term savings.
Solar loan: This allows you to retain ownership of your system while owing little to no money upfront. Solar loans aren't all created equal. If you have access to subsidized clean energy loans through local incentive programs, that's usually your best bet. A home equity loan or a personal loan are often your next best options—private solar loans typically come with higher interest rates or upfront fees.
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Incentives
What are the best solar rebates and incentives in Arizona?
Incentives help bring solar's price tag down considerably in Arizona. Here are the major ones to know about:
| Incentive | Average savings in Arizona | Description |
|---|---|---|
Credit for Solar Energy Devices | $1,000 | Lowers your solar panel system's cost by 25%, or up to $1,000 |
Arizona solar sales tax exemption | 0.72% of your system's value, annually on average | If you use solar energy as a source of power, you won't need to pay tax on the value your solar panels add to your property. |
Is net metering available in Arizona?
Arizona no longer offers a state-wide net metering program. Instead, utilities offer a reduced benefit known as net billing. Your credits will be worth the avoided cost rate––less than the retail rate––which means you won't save as much on your electric bills. The avoided cost rate dropped in October 2023, but if you interconnected your solar panel system before then, you are locked into your current rate for 10 years.
Equipment
Equipment quality
The more efficient a solar panel is, the more power per square foot. As of 2025, the most popular solar panels have a rated output of 450 watts. To get the most out of your solar energy system, choose panels with at least that much power output.
Your solar inverter setup is also important consideration—make sure it suits your roof’s layout.
And if you’re interested in a solar battery, it’s best to choose one that integrates with that inverter.
The best equipment tends to be more expensive, but it will often save you more money in the end. Premium equipment often has the best warranty terms, guaranteeing 25-40 years of coverage for repairs, replacements, and the lowest degradation rates (meaning they’ll maintain more of their power output for longer).
Companies
Who are the best solar installers in Arizona?
We pre-screen all of the solar companies on EnergySage to ensure they'll provide you with a high-quality installation. We then rate them based on their results, reputation, and responsiveness. Here are the highest-rated EnergySage installers in Arizona:
Ready to start looking for a solar installer?
Here are some of the most popular ones near you:
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resources
Top solar resources for Arizona
- Arizona Solar Loan Providers
Search through our list of top loan providers to finance your solar panel system.
- Arizona Commerce Authority
Learn about AZ renewable energy programs from the state government.
- Arizona Utilities Division
Read more about how utility companies work in AZ.
- Arizona Electricity Profile (EIA)
Learn about AZ energy production and prices.
- AZ State Solar Factsheet (SEIA)
See quick stats about how much solar energy has grown in AZ.
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