Solar Panels Cost Arizona
Written by Alternative Energy

How Much Do Solar Panels Cost In Arizona?

As of July 2023, the average cost of solar panels in Arizona is about $12,300 with average prices ranging from $13,188 to $10,455 to $14,145 or $3.15 per watt in the US for 2023 according to multiple sources. This estimated cost is based on installing an average sized 5 kW (5000 watt) solar system and after deducting the 30% Federal tax credit, Investment Tax Credit (ITC), and other incentives.

  • 30% Federal Tax Credit = deduct $4,806
  • $1,000 Arizona Solar Tax Credit = deduct $1,000

The average cost of solar panels in Arizona after deducting solar tax credits and rebates is around $12,300. This solar cost estimate is based on installing a 5 kilowatt (6,000 watts) solar system. According to Energy Sage, “As of July 2023, the average solar panel cost in Arizona is $2.46/W. Given a solar panel system size of 5 kilowatts (kW), an average solar installation in Arizona ranges in cost from $10,455 to $14,145, with the average gross price for solar in Arizona coming in at $12,300“.

Arizona Solar Calculator

Free Solar Quotes In Arizona

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.

The Average Cost Of Solar Panels In Arizona

The average cost of panels in Arizona for a 7kW solar system is about $24,500, while the average cost of solar panels per watt is around $2.53 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.

According to MarketWatch, “Arizona homeowners can expect to pay an average price of $2.53 per watt when installing solar panels, or $15,180 for an average-sized 6 kilowatt (kW) solar system. That cost is lower than the national average of $3.27 per watt, as reported by the Solar Energy Industries Association (SEIA)”.

Do the math yourself: Multiply $3.50 per watt X 7,000 kilowatts = $24,500 average solar panel cost in Phoenix, Arizona.

How Much Do Solar Panels Cost Per Square Foot?

Solar panels cost about $7 per square foot in Arizona with average prices ranging from $4 to $10 per square foot in the US for 2023, according to one source.

HomeGuide says, “Cost of Solar Panels Per Square Foot. The cost of solar panels to power your house are $4 to $10 per square foot. However, most installers estimate solar costs by the amount of energy needed, at $2.53 to $3.15 per watt before any tax credits or incentives.”

Solar Panel Installation in Arizona is Cheaper Than You Think

Solar Panel Installation Arizona

Solar panel installation in Arizona is affordable, increases your home value by 2% to 3%, saves you over $25,000 to $50,000 over the next 25 years, and you can get your solar panels installed for free. All you need to pay is your small monthly loan payment until you pay off your system. Solar panel installation cost estimates below are based on installing a 5kW solar system. Find your city to see solar panel installation costs near you:

Residential Solar Panels Arizona 

Residential Solar Panels Arizona

SolarReviews estimates the average cost of residential solar panels in Arizona to be about $3.15 per watt or $10,247 total for a 5kW system after claiming tax credits and incentives.

Affordable Solar Panel Installation In Phoenix AZ

Alternative Energy, LLC is proud to announce that we offer the most affordable residential solar panels in Arizona. We offer some of the best solar deals in Phoenix Arizona. Read our reviews. 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!

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. Learn more about why solar panels are worth it in Arizona.

Solar-Estimate says, “Arizona has some of the best potential for solar in the United States. The state receives more sun than any other area in the nation, meaning a solar system can produce about 180% more than what it does in places like New York.

Solar panels can increase your home’s value up to 2%-3% in Arizona. On the other hand, choosing to lease solar panels will decrease your home’s value. A leased solar system can lower a home’s value by 3%-8% in Phoenix, Arizona. According to AZCentral, “Panels that are owned add some value to the resale… The panels add value in proportion to the amount of money they are expected to save on utilities through the remainder of their warranty. For example, if there are 15 years left on the warranty and the panels save $80 a month in electricity, the system could add $14,000 to a home appraisal.

How Much Do Solar Panels Save in Arizona?

How Much Do Solar Panels Save in Arizona

Solar panels save you 100’s to 1,000’s of dollars per month on electricity and even more over the lifetime of your system.

According to EnergySage, the average homeowner in Arizona can save about $20,646 over the next 20 years by installing solar panels. Compare that to California where homeowners are saving upwards of $40,000 with solar. 

You will start saving money the day you install your solar system. But, your actually saving will depend on the number of daily sunlight hours your panels receive, the size of your panels, and the angle they are mounted at. Energy Sage says that local electricity rates also play a role in figuring out how much your solar panels will save.

Learn more about how much solar panels save.

Solar Power in Arizona

Solar power is growing in Arizona. At the end of Quarter 3 2019, Arizona had a total installed solar capacity of 3,913.00 MW, making it one of the highest solar power generating states in the nation. SEIA currently estimates that Arizona’s solar capacity powers 578,323 homes in the state, and employs 7,524.

One of the most notable solar installations in Solana, Arizona was completed in 2013. According to the SEIA, “This concentrating solar power project has the capacity to generate 250 MW of electricity – enough to power over 65,000 Arizona homes.

Solar power has great potential in Arizona. Wikipedia says, “Solar power in Arizona has the potential to make Arizona the Persian Gulf of solar energy, according to then-Governor Janet Napolitano“.

Arizona solar power incentives make solar cheap. The Arizona Solar Power tax credit will reimburse you 25% (up to $1,000) of your solar panel installation costs. According to EnergySage, “The Residential Arizona Solar Tax Credit gives you back 25% of the cost of your solar panel installation, up to $1,000, off of your income tax return in the first year you install the system, according to EnergySage“. Read more about the Residential Solar and Wind Energy Systems Tax Credit here.

If you plan on taking advantage of Arizona solar power incentives you will need to act fast. According to AZCentral, “After 2021, the residential credit will drop to zero. The credit today is 30 percent of the cost of the solar equipment.

Free Solar Panels in Arizona

Free Solar Quotes In Arizona

If you’re not paying with cash, the catch with free solar panels in Arizona is that you are required to get a home equity line of credit on your home (HELOC), get a personal loan from a bank or another lender, enter into a solar loan with a solar company, or in the worst-case scenario, lease the solar system (and only lease if you don’t pay Federal Taxes). Free solar panels are a great way to get started with solar at no cost.

According to EnergySage, “The term ‘free solar panels’ is sometimes used to advertise solar lease or solar power purchase agreements (PPAs)”.

You are required to make a small monthly loan or lease payment. However, you should know that solar leases are not worth it – solar loans are worth it. You will never own your solar panels like you will with a solar loan. Learn more about solar financing options below.

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. 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.

No Cost Solar Program Arizona for APS & SRP

Heard about the APS’s or SRP’s no cost solar program in Arizona? Well you would be suprised to know that APS will install solar on your home for free but your saving aren’t all that great. But, according to SolarBuilderMag, “Designed specifically for limited- and moderate-income customers, APS Solar Communities approved participants agree to have a rooftop solar system installed at no cost. Customers then begin receiving a monthly $30 bill“.

The maximum amount you can save over the lifetime program is about $7,200. It’s great that APS has a free solar program in Arizona, but it doesn’t really save you as much money as purchasing your own solar system. With purchasing your system, after you pay off your system in about 8 years (on average), you will get to enjoy free electricity for the remainder of the lifetime of your system (17 years). Homeowners can save an average of $25,000+ in electricity savings over 25 years.

SRP on the other hand is giving has a no-cost solar program for nonprofit organizations. According to AZBigMedia, “As part of this program, SRP will provide up to four free solar installations to qualified 501(c)(3) organizations by the end of April 2020.

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 electricity that gets produced, being cheaper, and that rate can be locked in for up to 15 years.

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