Solar Panel Savings in Tempe, AZ
Calculate how much you can save with solar panels in Tempe, Arizona. Based on 6.9 peak sun hours/day and 13.5¢/kWh average electricity rate.
6.9
Peak Sun Hours/Day
13.5¢
Avg Rate (¢/kWh)
6.7 yr
Payback Period
$30k
25-Year Savings
Tempe Solar Overview
Calculate Your Tempe Solar Savings
Tempe average: $130/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
$55,609
Monthly Savings
$136
Federal Tax Credit
$4,698
Cumulative Savings vs System Cost
Cost Breakdown
| Item | Tempe | National Avg |
|---|---|---|
| Gross System Cost (6kW) | $15,660 | $17,100 |
| Federal Tax Credit (30%) | -$4,698 | -$5,130 |
| Net System Cost | $10,962 | $11,970 |
| Cost Per Watt | $2.61/W | $2.85/W |
Solar Potential in Tempe
Sun Hours vs National Average
Tempe gets 53% more sun than the national average.
Climate Advantages
- 262 sunny days per year
- Average temperature: 65°F — moderate climate with good solar conditions
- Average roof size: 1,865 sq ft — enough for a 103-panel system
Tempe Solar Incentives & Programs
Federal Investment Tax Credit (ITC)
30% of total system cost deducted from federal taxes. For a $15,660 system, that's a $4,698 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
Arizona Public Service offers net metering in Tempe. Earn credits for excess solar energy sent to the grid, reducing your electric bill further.
Environmental Impact in Tempe
5.0
Tons CO2 Offset/Year
83
Equivalent Trees Planted
1.1
Homes Worth of Energy
Based on 12,089 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 Tempe, Arizona
Tempe, Arizona receives an average of 6.9 peak sun hours per day, placing it among the best cities in the country for solar energy production. With electricity rates averaging 13.5¢ per kWh from Arizona Public Service, below the national average, but with rates rising 2-3% annually, the long-term savings are still meaningful.
A typical 6kW solar system in Tempe produces approximately 12,089 kWh per year, saving homeowners an estimated $1,628 annually. The system pays for itself in about 6.7 years, after which you enjoy essentially free electricity for the remaining 18+ years of the system's warranty life.
Tempe has a solar penetration rate of 8.4% — showing growing adoption of residential solar, with significant room for expansion. The cost of living index of 94 (national average: 100) reflects a lower cost of living, keeping installation costs competitive.
Other Cities in Arizona
Chandler, AZ
Gilbert, AZ
Glendale, AZ
Mesa, AZ
Peoria, AZ
Phoenix, AZ
Scottsdale, AZ
Surprise, AZ
Tucson, AZ
Frequently Asked Questions
How much do solar panels cost in Tempe, AZ?
The average cost of a 6kW solar panel system in Tempe is approximately $15,660 before incentives ($2.61/watt). After the 30% federal Investment Tax Credit, the net cost is about $10,962. Arizona solar tax credit up to $1,000; property tax exemption for solar.
How many peak sun hours does Tempe get?
Tempe, AZ receives an average of 6.9 peak sun hours per day and approximately 262 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 Tempe?
The average solar payback period in Tempe is approximately 6.7 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 $29,738.
Does Tempe have net metering?
Yes, Tempe has access to net metering through Arizona Public Service. 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 Tempe, AZ?
Absolutely. With a 6.7-year payback period and $29,738 in 25-year savings, solar is an excellent investment in Tempe. The 30% federal tax credit and local incentives help make solar financially attractive.