Excellent sun resource; 25% state tax credit up to $1,000 plus property and sales tax exemptions.
Avg residential rate14.5¢ / kWh
Avg system cost$2.55 / W ($28,050 for 11 kW)
Peak sun hours / day6.5
Net meteringSuccessor Tariff
State tax credit25% (max $1,000)
Federal tax credit30% (Residential Clean Energy Credit, through 2032)
Property tax exemptionYes
Sales tax exemptionYes
Arizona payback by monthly electric bill
The bigger your current bill, the faster solar pays back. Here's how the numbers work out for a typical Arizona home:
Monthly bill
System size
Gross cost
Federal credit
State credit
Net cost
Year-1 savings
Payback
$100
4.3 kW
$10,838
−$3,251
−$1,000
$6,586
$1,140
5.5 yr
$150
6.4 kW
$16,243
−$4,873
−$1,000
$10,370
$1,709
5.7 yr
$200
8.5 kW
$21,675
−$6,503
−$1,000
$14,173
$2,281
5.8 yr
$300
12.8 kW
$32,512
−$9,754
−$1,000
$21,759
$3,421
6 yr
Assumes 95% bill offset, 3% annual rate inflation, 0.5% annual panel degradation, and a 25-year system life.
Calculate your exact Arizona solar payback
Enter your real monthly electric bill to see your personalized payback estimate.
Best path forward in Arizona
The fastest, free way to see real installer quotes for your roof is to use a marketplace like EnergySage. You'll get up to 4 competing bids from local pros without phone harassment.
How long does it take for solar panels to pay for themselves in Arizona?
For a typical Arizona home with a $150/month electric bill, a 6.4 kW system pays for itself in about 5.7 years. Higher bills (or higher state incentives) shorten this; lower bills lengthen it.
What's the average cost of solar panels in Arizona?
Arizona installers average $2.55 per watt before incentives. A typical 11 kW system costs roughly $28,050 gross, or about $10,370 after federal and state credits.
Does Arizona offer a state solar tax credit?
Yes — Arizona offers a 25% state tax credit, capped at $1,000. This stacks on top of the 30% federal Residential Clean Energy Credit.
Does Arizona have net metering?
Arizona replaced retail net metering with a successor tariff that credits exports at less than the full retail rate. Solar still pays back, but adding battery storage can recover much of the lost value.
Are solar panels worth it in Arizona in 2026?
For most Arizona homeowners with a monthly electric bill above $100, the answer is yes — payback typically lands between 4 and 7.4 years depending on roof orientation, shade, and incentive timing. The 30% federal credit is locked in through 2032, removing a major timing risk.