Arizona Solar Panels Cost - 2019 Cost vs Savings Info-graphic
Written by Alternative Energy

How Much Do Solar Panels Cost In Arizona?

In Arizona, solar panels cost about $24,500 for an entire system or $3.50 per watt on average. The cost of going solar in Arizona ranged from $20,000 to $30,000 for a 7 kilowatt (7,000 watts) solar system in 2018-2019. This estimated solar installation cost is before deducting tax incentives and rebates.

  • 30% Federal Tax Credit = deduct $7,500
  • $1,000 Arizona State Tax Credit = deduct $1,000

After you deduct solar incentives and rebates, this makes the average cost of solar in Arizona $15,500. This solar cost estimate is based on installing a 7 kilowatt (7,000 watts) solar system.

Solar Panel Cost Calculator

Use our Arizona solar panel cost calculator to get a more specific solar cost estimate based on your annual kilowatt hours of electricity used in your home. If you are looking for solar companies in Arizona; Alternative Energy, LLC offers the lowest solar panel installation cost in the entire state of Arizona! Get a free solar quote by filling out the short quote form for a free estimate.

Not convinced about going solar yet? At least take a look at:

The Average Cost Of Solar Panels In Arizona

The average cost of panels in Arizona is $24,500, while the average cost of solar panels per watt in Arizona is $3.50 per watt

The actual cost of solar panels in Arizona is dependent upon how many watts of power your home uses multiplied by the current rate of solar panels per watt in the State of Arizona.

The average home in Arizona uses around 7,000 watts or 7 kilowatts in 2018-2019; with the average cost of solar panels per watt in Arizona being about $3.50 per watt; this makes the average cost of solar panels in Arizona around $24,500. That amount includes materials and installation costs.

Do the math yourself: Multiply $3.50 per watt X 7,000 kilowatts = $24,500 average solar panel cost in Phoenix, Arizona. Thinking about installing a 6kw solar system in Arizona? According to Energy Sage, “As of 2018, the average cost for solar panels in the state of Arizona is $2.67 per watt. Since the average system size in the U.S. is 6 kilowatts (6,000 watts), the average cost of a solar panel system in AZ is $16,020 before any federal or local incentives“.

The Average Cost Of Solar Panel Installation In Arizona By City

The range of solar panel installation costs in Arizona are between $17,000 – $52,200, putting the average solar panel cost in Phoenix, Arizona right around $24,500 for a 7 kilowatt residential solar system. This solar cost estimate is based on installing a 7-kilowatt solar system (average sized solar system), at a rate of $3.50 per watt. This estimated cost includes the price of solar panels and professional installation. Low Cost: $20,000, AVG Cost: $25,000 and High Cost: $30,000.

*Estimates Based On 7kw System

How much does solar panel installation cost in each city of Arizona?

Alternative Energy, LLC Offers Affordable Solar Panel Installation In Phoenix, Arizona & More!

We’ve cracked the solar code in Arizona!

Affordable Solar Panel Installation In Phoenix AZ

Alternative Energy, LLC is proud to announce that we offer the most AFFORDABLE SOLAR PANEL INSTALLATION in Arizona. We offer some of the best solar deals in Phoenix Arizona. We can get you started with solar panel installation for $0 down payment when you finance. No one can beat No Money Down Solar Panel Installation. NO OTHER SOLAR COMPANIES IN ARIZONA CAN BEAT OUR PRICES because we install more than just solar panels. For example, our competitors will offer you a high priced solar system for around $30,000 to cover your inefficient energy usage, while, our company, on the other hand, will only charge you $20,000 for a smaller solar system and other energy upgrades. We can also help you maximize your Arizona solar rebates and tax incentives.


Alternative Energy, LLC ensure TOTAL HOME COMFORT, while our competitors only offer solar. Both decisions will save you 99% on electricity but choosing Alternative Energy, LLC means your home will be more comfortable too!

Benefits Of Installing Solar Panels & Energy Upgrades In Arizona

Installing solar panels and making energy improvements to your home offers many benefits including:

  • Makes your home more energy efficient
  • Takes less time to cool or heat your home
  • Help keep all the rooms in your home at the same temperature
  • Return on investment after six years instead of 12
  • Start saving the first day after installation
  • Save 99% on electricity
  • Increase your home’s value

We’ve Solved Everything!

Solar Panel Installation Phoenix Arizona

We solved most of the most significant issues homeowners are worried about when talking about installing solar panels:

  • No Lien on Property
  • No Upfront cost
  • Best Finance options guaranteed
  • 25-year warranty
  • No prepayment penalties
  • Get ALL Tax Benefits and Rebates
  • Turn your Power bill into Equity
  • Don’t Lease! You own from day one
  • Easy Turn-Key no hassle process
  • Fastest Install times in the Industry Guaranteed!!
  • Lowest Carbon Footprint of any option available today
  • We use only the premium, newest Panels and Inverters
  • Take up less space on your roof than other companies
  • Low profile racking for the best look.

Discounts For: 

We offer the following discounts for you to save on solar installation:

  • Cash
  • Military
  • Senior Citizen
  • Service Industry
  • Renewable Industry
  • Student
  • Commercial
  • Multi Project
  • Holiday

Table Of Contents

Going with the popularity of the solar cost question, we decided to do some research for our homeowners and managed to gather some great information from all over the internet, putting together all the costs of operating solar panels in Arizona into one post. We hope that the following information is helpful. So, let’s get into it. What will it cost to have solar panels installed on my house in Arizona? Furthermore, if you need solar panels in Phoenix, give Alternative Energy, LLC experts a call today at (480) 744-1803!

How Much Does It Cost Per Kilowatt For Solar Energy In Arizona?

The cost per kilowatt for solar energy in Arizona is $3.50 – $5.00 per watt, much lower than the national average price.

  • Average Cost Per Kilowatt in the US: $7 – $9 per watt
  • Average Cost Per Kilowatt in Arizona: $3.50 – $5.00 per watt

Just because solar is cheap doesn’t mean you should go out and buy the biggest solar system thinking it’s going to save you the most money because it won’t! I thought installing solar panels helps save money? Well, you’re right, sort of, but hear us out.

Cost Per Watt Based On Solar System Size

The cost per watt for solar will be determined based on the size of the solar system you need. For example, The way you figure out how much your system is going to cost is easy. The average sized system in Arizona is around 7 kilowatts, (7 kilowatts = 7,000 watts). Seven thousand watts multiplied by $3.75 per watt, as we can see in the chart below, would cost you $26,250 (7,000 watts x $3.75 per watt = $26,250).

  • 0 – 3.4 watt solar system = $5.00 per watt = $15,000 – $17,000
  • 5 – 4.4 watt solar system = $4.50 per watt = $17,500 – $19,800
  • 5 – 5.4 watt solar system = $4.00 per watt = $18,000 – $21,600
  • 5 – 6.9 watt solar system = $3.75 per watt = $20,625 – $25,875
  • 0 – 15.0 watt solar system = $3.50 per watt = $24,500 – $52,500

*These costs are based off financing solar panels, if you pay cash for solar, you can take off .50 cents per watt across the board.

The Problem With Arizona Homes & Businesses

When Arizona was originally developed, most settlers were using design plans based off east coast/midwest construction methods. These plans did not include 120-degree temperatures, dry air and always sunny days. Arizona homes and business are not built correctly for this hot/dry climate, and most homes and facilities have major inefficient energy problems forcing them to purchase larger air conditioning units than they need. Most solar companies are going to try to sell you a large solar system based on your high energy and A/C usage when more importantly you need to solve your high energy usage problem first.

How Our Solar Company Is Different

Alternative Energy, LLC noticed the energy inefficiency problems with most Arizona homes and business and decided that instead of selling you a larger solar system, make the rest of your home or business more energy efficient first. Everything from installing insulation and radiant barrier to wrapping your air ducts with SRX and installing mini-split systems. That way you only pay a few thousand dollars on energy efficient upgrades that save you $10,000 – $20,000 by only installing a smaller solar system.

How Much Do Solar Panels Save On Electricity Bills In Arizona?

You can save as much as 97-99% on electricity by installing solar panels in Arizona. Most homeowners in Arizona see a 20 year savings solar energy savings of $25,000 by installing solar panels. Although, you are going to pay a steeper cost to do so if you ONLY decide to install solar panels. Your home or business is most likely very energy inefficient, and it doesn’t make sense to pay such high costs for solar when all you need a few energy efficient upgrades and a small solar system to save even more.

Most Homes & Business In Arizona Aren’t Insulated Properly

The biggest problems with most homes in business in Arizona are lack of insulation and radiant barrier solutions. Also, even the homes and businesses that are taking advantage of radiant barrier aren’t doing it correctly. Modern radiant barrier technology fails time and time again once dust is introduced to your attic leaving it ineffective to reflect heat. Dust will make a radiant barrier stop blocking heat! No blocking heat means you are no longer saving money from that investment. Then when you decide to call your insulation contractor he says that he can’t help you, there are no guarantees with radiant barrier! We want to change that!

Save 50 – 100% On Electricity With Our Patented Energy Solutions

Wouldn’t it be nice if there was a new radiant barrier technology that worked, wasn’t affected by dust and came with a money back guarantee to save you at least 50% on electricity?  Well, you’re in luck! We happen to have patented radiant barrier technology that isn’t affected by dust, actually works to save you up to 50% on electricity and comes with a lifetime guarantee to keep working forever!! Not only that, but now that your home or business is more energy efficient, you will only need to install a smaller solar system, saving you thousands more than installing solar panels without energy efficient upgrades.

What Is The Average Electric Bill With Solar Panels Installed?

The average electric bill with solar panels is about $35 which is your solar utility payment. This estimate is assuming you installed a large enough solar system to cover your energy usage during any time of the year.

How Long Does It Take To Pay Off Your Solar Panels In Arizona?

The U.S. Department of Energy says that solar systems will only take about five years to pay for themselves. However, many of the areas throughout the U.S. Will find that solar payback time will only take three years. Any electricity that your solar system generates after the amount you have used is considered to be long-term savings on your part. For the residents in Hawaii, this will come to as much as $64,000 over as little as 20 years.

Solar Panel Installation Costs Pay For Themselves

According to the U.S. Department of Energy, a solar electrical system is going to raise the value of a property, making it worth $20 for every $1 made with the utility savings in one year. What this means is that a family that has a 3kW solar system will automatically be adding a value of $16,720 to their home. Furthermore, you can look at all the solar tax incentives to see for yourself that solar systems pay for themselves.

The Real Cost Of Operating Solar Panels

Around 30% of the total costs involved accounts for solar panels alone. Residential solar panels that are combined with a 3 – 8kW capacity cost between $17,000 – $52,000. Just because a solar panel has a high price on it does not mean that it is any better than one that is cheaper.

To judge the cost of solar panels the best way to go about it is to use the method of cost per watt ($/W), and it happens to be more convenient. The metrics will indicate the cost that is related to the electrical output. If you buy solar panels in industrial quantities, you can get them at a lower price than you could a decade ago. Currently, in industrial qualities they are being sold at $0.70/W, to translate this for homeowners, it means $1.5/W.

Balancing Out System Costs

Everything except the solar panels themselves is referred to as a balance of the system (BoS). Which will usually include at one or more inverters, wiring and all other electrical components, and mounts. Another 20% of the total cost (balance of the system (BoS). These components will cost between $3,000 – $10,000 dollars.

The Solar Inverter Costs

The inverters are used to convert direct current (DC) from the solar panels coming through alternating current (AC) and are what a home uses to run appliances, etc., and it is what allows your home to be able to grid-tie your system. Now then, 10% of total costs account for the inverters used, which in this case come to between $1,000 – $4,000.

Solar panels will typically come with a 20 to 25-year warranty; however, the conventional central inverters are going to need to be replaced much sooner than this. You can choose which inverter you would like to use between the micro-inverters and the central (string) inverters, Note: that the micro-inverters will boost the amount of power is used as well as the cost, and also an extended warranty.

Solar Panel Installation Cost

This section consists of labor costs (15%), permits, inspection fees (15%). These percentages depend on the locations; however, is usually between $2,000 – $5,000.

  • Take these into account:
  • Get the building and electrical permits at the Department of Building.
  • The requirements of the neighborhood.
  • Be approved by the Home Owners Association.

You may get lucky and get an installer that can help you out with the information you need to know about permits in your area; this is the reason we recommend hiring an installer from a larger company is always the best.

According to Think Progress, in an article titled “You’ll Never Believe How Cheap New Solar Power Is”:

“Solar energy has grown 100-fold in this country in the past decade. Globally, solar has doubled seven times since 2000, and Dubai received a bid recently for 800 megawatts of solar at a stunning “US 2.99 cents per kilowatt-hour” — unsubsidized! For context, the average residential price for electricity in the United States is 12 cents per kilowatt-hour.”

The Cost Of Operating

Operational costs between $4,000 – $8,000 (20%), includes maintenance, repairs, monitoring, insurance, and overhead costs.

Solar Tax Credits, Incentives & Rebates

Financial incentives make the solar market look good – whether there is any sunlight in the area or not! The final amount you end up paying for a solar system depends a great deal on the location you live, rebates available, tax credits available, and if you are eligible for any grants (if so, which ones?). There are some situations where the total costs may be cut more than 50%, making it possible for homeowners to own one for only a few thousand dollars. The Federal Tax Credit applies to everyone, which is at a staggering 30%. Several of the incentives have been capped at a specific power, with a cost threshold.  We usually recommend a system size which is going to maximize the potential of caps and cost thresholds.

Standard Components Of A Solar System

There is a lot more to it than just installing the panels. Generally, to install solar panels there will be four components to deal with in all PV systems:

  • Solar panels, these convert the energy from the sun to make the electricity.
  • Controller, regulates the flow of electricity, protecting batteries.
  • Batteries, electricity is stored for later use.
  • The Inverter converts the energy that’s stored into the needed voltage for running standard equipment.

It is not just one of the components that drive up the cost, but the entire system. Note: After some time the batteries need to be replaced. However, it’s expected to be seeing the cost to continually go down once the film panels are made available to the residential market, but for now, they are only being sold to commercial customers. It is in the works for Nanosolar and AVA Solar to boost up their production facilities. We will be able to see how the price targets turn out, and they may be available in volumes many times today’s output, meaning they may be at $1 – $2 per watt. That is if the cost of installation and equipment is reduced closer to $1 per watt, making the 5 kW system cost only $10,000, with the payback time down to only ten years, even if there are no subsidies. Solar system installations would then be more appealing. But, for this to work out, electricity costs would have to stay constant. If there is a continuation in the rise of fuel, it will also make the payback period shorter. For now, you can expect to be noticing more and more solar systems being on rooftops.

How Much Do Commercial Solar Panels Cost In Arizona?

The average cost of commercial solar panels depends on the number of kilowatts you need to cover your energy consumption. Generally speaking, the average cost of commercial solar panels is about $325,000. Costs ranged from $50,000 to $600,000 in 2018.

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

Free Solar Quotes In Arizona

Alternative Energy, LLC is a full-service Energy Company offering $0 down solar panel installation all over Arizona. We can help with everything from solar panel installation, residential solar panelscommercial solar panels, and off-grid solar panels to residential and commercial energy improvements including patented radiant barrier technology, load controller installation and more. Get a free affordable solar panel installation quote and figure out how much your solar panels will cost.

Contact Alternative Energy, LLC today to find out how we can save you 50-100% on electricity for much lower than the price of installing a large solar system. Give us a call today at (480) 744-1803; we look forward to speaking with you!

Our Solar Panel Installation Service area includes the all major Arizona cities including: 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, Flagstaff, Kingman, Goodyear and more.

PAY NOTHING DOWN! Over the past several years’ people have been purchasing Solar panels using the method of ‘Power Purchase Agreements’ (PPA’s), ‘Third-party-owned’, and ‘Pay-as-you-go’ solar. These models are to reduce upfront costs. It is their arrival in the past several years that has helped them grow.

It is now possible for homeowners to have solar and pay nothing down, generating savings from day 1. The way that leasing works are instead of having an electricity bill to pay, you would be leasing a solar system, paying only a fixed rate for the electric that gets produced, being cheaper, and that rate can be locked in for up to 15 years.

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