Written by Alternative Energy

Are Solar Panels Worth It in Arizona?

Updated 7/24/2023

You may be asking yourself “are solar panels worth it in Arizona” or “is solar worth it in Arizona?”. The answer is “yes“! Solar is worth it in Arizona” but that simple answer is not enough to sway most skeptics.

Over the past decade, the solar energy industry has grown exponentially. Renewable energy is going to play a large role in our society in the future, and people are already preparing for it. And, not only that but solar is becoming more affordable than ever. Plus you save even more on solar with the local and federal governments offering incentives and rebates. According to CNet, “If you live in the Grand Canyon State, solar panels could be worth the investment.”

So, Is Solar Worth It In AZ?

Are Solar Panels Worth It In Arizona

Yes, solar panels are absolutely worth it in Arizona. Solar panels can increase your home value by 2-3% in AZ, save you up to 100% on electricity, and more! Arizona has more sunny days than any other state and the federal government will take care of 30% of the cost.

Let’s take a look at the following 12 reasons why solar is absolutely worth it in AZ:

Free Solar Quotes In Arizona

1. Arizona Will Pay For 25% Of The Cost

The Arizona government offers solar tax incentives to those who install solar panel systems into their home. This incentive, known as a solar energy credit, and can be worth up to 25% of the cost of the solar panel device up to $1,000.

This government credit is also good for various solar panel systems, such as cooling, lighting, and general electricity.

For those looking to cut costs, this is a perfect way to save money both from the government and through more efficient electricity usage.

Use our solar panel cost calculator to find out your solar system size, how many solar panels you need, total system cost and estimated monthly payment.

2. The Federal Government Will Give You Another 30%

That’s right! According to AZCentral.com, the government is still giving away 30% tax credit to homeowners who go solar. After this year the credit will decrease to 26%, so its best to act now to still get your 30%. Homeowners can save over $25,000 in electricity savings over 25 years.

3. Water Heating Costs Less With Solar

Heating water can comprise a significant portion of your energy bill, especially during the colder months. Through solar panel installation, you’ll be able to use solar energy to heat up the water in your home.

During the winter, this means that your longer, hotter showers will have less of an impact on your energy usage.

During hotter months, you’ll see an even greater reduction in energy usage for heating water. Thus, solar energy is beneficial for more than just lights and air conditioning.

You may still be wondering “are solar panels worth it in Arizona?” One of their most recognizable benefits is…

4. Arizona Has More Sunny Days Than Any Other State

Are Solar Panels Worth It In Arizona

The sun is never going to run out of energy (at least not in our lifetime). Therefore, there will always be an unlimited source of power for solar panels to draw from.

Arizona has more sunny days than any other state with over 299 sunny days per year according to BestPlaces.Net.

Solar energy has a strong advantage over other forms of energy such as oil and gas, as both of those are finite. Taking advantage of solar panels now will allow you to save vast amounts of money in the future as fossil fuels become more scarce.

You can produce a ton of electricty with solar panels in Arizona. According to SolarReviews, “For each 1kw of solar panels installed on a south-facing roof in Arizona, you can expect to generate 1,752kWh per year“.

5. Arizona Has The Sunniest Cities In The US

According to NerdWallet, Arizona ranks in the top 5 for “Sunniest Cities in The US” with Yuma, Arizona ranking #1, Phoenix, Arizona ranking #4 and Tuscon, Arizona ranking #5. With so many sunny days, you can understand why solar can be so beneficial in Arizona.

6. Lowers Your Carbon Footprint

Pollution has longterm negative effects on both local environments and the planet as a whole. Luckily, many companies and individuals alike are now choosing to reduce their carbon footprint as much as possible.

Without the use of fossil fuels, solar panel systems will provide energy that is far cleaner than that from other sources. Check out the environmental benefits of solar energy at EnergySage.

7. Walmart Saved $4.8 Million With Solar

Walmart U.S. installed 240 solar projects through 2013, saving approximately $4.8 million” says Walmart.com. It is safe to say that solar must have some kind of money saving potential or one of the biggest retailers in the world wouldn’t be planning on making the shift to every store they own. The cost of commercial solar is pretty affordable in Arizona and can save your business a ton of money.

8. The Cost to Install Solar Panels is Cheap in AZ

Because the cost to finance solar is less expensive than what you are currently paying the utility company, you will save money day 1! The average cost of solar panels in Arizona is $16,020 or $2.95 per watt. This estimated cost is based on installing an average sized 6 kW (6000 watt) solar system and before deducting the 26% Federal tax credit, 10% State tax credit, and other incentives. However, you better act fast because that percentage is going to lower again in 2021. According to RooftopSolar, “That percentage drops to 26% in 2020 then again in 2021 to 22%. In 2022, the federal tax refund will be completely phased out, so there is not going to be a better time to go solar!” Learn more about solar panel costs in Arizona.

It doesn’t cost any money out of pocket to get your solar system installed unless you are paying for your system with cash.

Are Solar Panels Worth It In Arizona?

Average 8 years you will be finished paying off your solar system and will only have an average electric bill around $375 per year (Utility Fee for having solar).

9. Lock in your utility cost for the Next 25 Years

Unstable utility rates are always going up and never going down. That’s why it is more important than ever to go solar now to avoid paying even more for electricity than you are already paying.

10. Maximize Federal Tax Credits When You Pay Cash

Monetize your tax credits better when you pay cash. The financing or leasing company gets more of the tax credits when you finance or lease your solar panels. Paying cash is the best way to monetize your tax incentives

Example: If you pay $30,000 cash, 30% of that will be a federal tax credit ($9,000 tax credit) If your tax liability is equal to or greater than  30% of your gross system cost, you will get that back in your tax refund after the first year.

11. The higher your electricity bill the higher amount you will save

Homeowners with a power bill of 250 can potentially save roughly 16,000 in the first 12 years.

12. Solar Panel Increase Your Home Value in Arizona

Solar Panels Increase Home Value in Arizona

Installing solar panels can increase your home value in Arizona by 2%-3%. Homebuyers are willing to pay more for homes with Solar Panels installed on it according to Berkeley Lab (in partnership with appraisers, universities, and Sandia National Laboratories). This means AZ homebuyers are willing to pay an average of $15,000 more for a home that has received solar panel installation.

Yes. Solar Are Panels Worth it in Arizona!

Yes! Solar panels are worth it in Arizona! With long-term savings and fewer carbon emissions, solar panels will be one of the heavy hitters when it comes to energy sources in the future. Due to the high amount of sunshine Arizona experiences, it’s also a prime location for them.

But, some people may still be on the fence despite the benefits. Not sure if they’re right for you? You can learn more about solar panels on our blog.


  1. Phoenix, Arizona Climate, www.bestplaces.net/climate/city/arizona/phoenix.
  2. Bizjournals.com, www.bizjournals.com/phoenix/news/2018/09/12/arizona-maintains-solar-strength-q2-data-shows.html.
  3. Matasci, Sara. “2019 Health & Environmental Benefits of Solar | EnergySage.” Solar News, EnergySage, 15 Jan. 2019, news.energysage.com/health-environmental-benefits-of-solar-energy/.

Determining If Solar Panels Are Worth It In Arizona

Living in the sunniest state in the nation, Arizona residents have a great opportunity to harness solar energy and potentially reap significant benefits for their homes. However, before making the decision to go solar, it’s essential to assess your property and calculate the potential return on investment. According to Ecowatch, here are the key factors to consider:

1. Your Home’s Energy Consumption:

Solar energy systems are sized based on watts or kilowatts, which largely depends on your average monthly energy usage. If you have higher energy consumption, you will require more solar panels. While this may increase the initial cost, it also means greater savings on monthly electricity bills when the solar panels are in operation. On the other hand, if your energy usage is relatively low, the financial benefits of solar conversion may not be as significant.

As a general guideline, households consuming less than 500 kWh per month might not experience a substantial return on investment with solar panels. However, if your energy consumption exceeds this amount, installing solar panels becomes more worthwhile. Considering that the average home in Arizona uses 1,114 kWh per month, the majority of residents can expect significant advantages from adopting solar power.

You can assess your past utility bills to determine your home’s historical energy usage and gauge where you stand in terms of consumption.

2. Cost of Going Solar in Arizona:

The expenses associated with installing a solar power system should be taken into account. These costs include the solar panels, inverters, mounting equipment, installation labor, and any additional fees. It’s essential to obtain quotes from reputable solar providers to compare the expenses and available financing options.

3. Average Payback Period in Arizona:

The payback period represents the time it takes for the savings on your electricity bills to cover the initial investment in solar panels. Generally, a shorter payback period indicates a more favorable return on investment.

4. Average Buy-back Rates in Arizona:

In some cases, surplus solar energy can be sold back to the grid, generating revenue for homeowners. Understanding the buy-back rates and policies of your local utility company can impact the overall financial benefits of going solar.

5. Your Roof’s Sun Exposure:

The orientation and shading of your roof play a crucial role in maximizing solar energy generation. A roof with ample sunlight exposure will ensure that your solar panels can generate as much electricity as possible.

6. Solar Outlook in Arizona:

Considering the abundant sunshine in Arizona, solar power remains a viable and reliable energy source. Understanding the long-term prospects of solar energy in the state can help you make an informed decision.

By carefully evaluating these factors, Arizona residents can determine whether solar panels are a worthwhile investment for their specific circumstances and contribute to a cleaner, more sustainable future.

Alternative Energy Offers $0 Down Solar Panel Installation In Phoenix, Arizona

Free Solar Quotes In Arizona

Alternative Energy, LLC offers affordable solar panel installationoff-grid solar systemsresidential solar panels, solar batteries for home & business, solar air conditioningsolar carports & canopiescommercial solar panels, solar EV charging stations, solar panel removal and reinstall, solar panel repair, and other very effective energy-saving products & services. View our solar financing options. We offer solar panel installation all over the entire United States.

Our solar panel installation service area includes Phoenix, Tucson, Mesa, Chandler, Litchfield Park, Glendale, Ajo, Paradise Valley, Scottsdale, Fountain Hills, Gilbert, Tempe, Carefree, Cave Creek, Peoria, Surprise, Yuma, Avondale, Flagstaff, Goodyear, Lake Havasu City, Buckeye, Sedona, Maricopa, Flagstaff, Kingman, Goodyear and more.

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