Solar Panel Savings in Phoenix, AZ
Calculate how much you can save with solar panels in Phoenix, Arizona. Based on 6.3 peak sun hours/day and 14.0¢/kWh average electricity rate.
6.3
Peak Sun Hours/Day
14.0¢
Avg Rate (¢/kWh)
7 yr
Payback Period
$28k
25-Year Savings
Phoenix Solar Overview
Calculate Your Phoenix Solar Savings
Phoenix average: $128/mo
South-facing roofs produce the most energy
Add $8,000-$12,000 for whole-home battery backup
Annual Production
kWh/year
Annual Savings
per year
Net System Cost
after 30% ITC
Payback Period
break-even time
25-Year Total Savings
$52,705
Monthly Savings
$129
Federal Tax Credit
$4,644
Cumulative Savings vs System Cost
Cost Breakdown
| Item | Phoenix | National Avg |
|---|---|---|
| Gross System Cost (6kW) | $15,480 | $17,100 |
| Federal Tax Credit (30%) | -$4,644 | -$5,130 |
| Net System Cost | $10,836 | $11,970 |
| Cost Per Watt | $2.58/W | $2.85/W |
Solar Potential in Phoenix
Sun Hours vs National Average
Phoenix gets 40% more sun than the national average.
Climate Advantages
- 275 sunny days per year
- Average temperature: 69.3°F — moderate climate with good solar conditions
- Average roof size: 1,594 sq ft — enough for a 88-panel system
Phoenix Solar Incentives & Programs
Federal Investment Tax Credit (ITC)
30% of total system cost deducted from federal taxes. For a $15,480 system, that's a $4,644 credit. Valid through 2032.
Arizona State Incentives
Arizona solar tax credit up to $1,000; property tax exemption for solar.
Net Metering — Arizona Public Service (APS)
Arizona Public Service (APS) offers net metering in Phoenix. Earn credits for excess solar energy sent to the grid, reducing your electric bill further.
Environmental Impact in Phoenix
4.6
Tons CO2 Offset/Year
76
Equivalent Trees Planted
1.0
Homes Worth of Energy
Based on 11,038 kWh annual production with a 6kW system. EPA average: 0.417 metric tons CO2 per MWh, 10,632 kWh per US home.
Solar Energy in Phoenix, Arizona
Phoenix, Arizona receives an average of 6.3 peak sun hours per day, placing it among the best cities in the country for solar energy production. With electricity rates averaging 14.0¢ per kWh from Arizona Public Service (APS), below the national average, but with rates rising 2-3% annually, the long-term savings are still meaningful.
A typical 6kW solar system in Phoenix produces approximately 11,038 kWh per year, saving homeowners an estimated $1,543 annually. The system pays for itself in about 7.0 years, after which you enjoy essentially free electricity for the remaining 18+ years of the system's warranty life.
Phoenix has a solar penetration rate of 6.8% — showing growing adoption of residential solar, with significant room for expansion. The cost of living index of 103 (national average: 100) is near the national average.
Other Cities in Arizona
Chandler, AZ
Gilbert, AZ
Glendale, AZ
Mesa, AZ
Peoria, AZ
Scottsdale, AZ
Surprise, AZ
Tempe, AZ
Tucson, AZ
Frequently Asked Questions
How much do solar panels cost in Phoenix, AZ?
The average cost of a 6kW solar panel system in Phoenix is approximately $15,480 before incentives ($2.58/watt). After the 30% federal Investment Tax Credit, the net cost is about $10,836. Arizona solar tax credit up to $1,000; property tax exemption for solar.
How many peak sun hours does Phoenix get?
Phoenix, AZ receives an average of 6.3 peak sun hours per day and approximately 275 sunny days per year. This is above the national average of 4.5 hours, making it an excellent location for solar energy.
What is the solar payback period in Phoenix?
The average solar payback period in Phoenix is approximately 7 years. After payback, your solar panels generate essentially free electricity for the remaining 15-20 years of their warranty. Over 25 years, total savings can reach $27,739.
Does Phoenix have net metering?
Yes, Phoenix has access to net metering through Arizona Public Service (APS). This allows you to earn credits for excess solar energy sent to the grid, significantly improving your solar investment returns.
Is solar worth it in Phoenix, AZ?
Absolutely. With a 7-year payback period and $27,739 in 25-year savings, solar is an excellent investment in Phoenix. The 30% federal tax credit and local incentives help make solar financially attractive.