Is Solar Worth It in Arizona?
Yes — Arizona is one of the best states for solar in the U.S.
With abundant sun and high cooling demand, Arizona homeowners often see payback in 5–7 years and 20+ years of strong savings. Net metering and utility programs vary; compare offers from multiple installers.
Average Cost of Solar in Arizona (2026)
The total cost of a residential solar system depends on system size, roof type, and installer pricing.
Typical 6–8 kW system:
- Average cost before incentives: $13,000 – $19,000
- Federal tax credit (30%): -$3,900 – $5,700
- Average net cost after federal credit: $9,100 – $13,300
The federal 30% Residential Clean Energy Credit is administered through the Internal Revenue Service.
Most Arizona homeowners install 6–8 kW systems; larger systems are common for high AC use.
Solar Incentives in Arizona
1. Federal Solar Tax Credit (30%)
30% of installation costs deductible from federal taxes. Applies nationwide.
2. Net Metering / Value of Solar
Terms vary by utility (APS, TEP, SRP, etc.). Some offer net metering; others use value-of-solar or export rates. Check your utility.
3. Property Tax Exemption
Solar installations are exempt from property tax increases in Arizona.
4. State & Utility Incentives
Some utilities offer rebates or programs. Verify current programs at DSIRE.
Electricity Rates in Arizona
Arizona residential rates are often above the national average, especially in summer peak periods.
A typical Arizona homeowner spends $1,800–$2,800 per year on electricity.
Solar can offset most or all of this cost.
Payback Period in Arizona
Most homeowners see:
- Payback period: 5–7 years
- 25-year savings: $35,000–$70,000+
Savings depend on roof orientation, local utility rates, system size, and financing method.
Best Cities for Solar in Arizona
Solar performs well statewide, but adoption is strongest in:
- Phoenix
- Tucson
- Mesa
- Scottsdale
- Chandler
Suburban homes with south-facing roofs tend to achieve the highest ROI.
Is Solar Worth It in Arizona? (Summary)
Solar makes the most sense if:
- You plan to stay 5+ years
- Your roof gets strong sun (south/west ideal)
- Your electricity bills are $150+/month
- You qualify for the federal tax credit
Solar is highly attractive for most Arizona homeowners with good roof exposure.
How to Calculate Your Arizona Solar Savings
Every home is different.
To get a personalized estimate, use the calculator on this page: enter your ZIP, monthly bill, and optional system size to see projected savings and payback.