How Much Do Solar Panels Cost in Arizona?

Average Arizona Solar Panel Costs

Cost of Solar Panels per Watt in Arizona

The average cost of solar panels in Arizona is $2.50 per watt, including labor and materials. This price may range between $2 and $3 per watt, making it more affordable than the national average cost to install solar panels. These per-watt rates don’t include any federal, state, or local rebates or incentives.

The typical solar panel system size ranges between 5kW and 8kW, though Arizona homeowners may install a system as small as 2kW or as large as 11kW. Use the table below to explore how system size can impact the overall cost of solar panels.

Arizona Solar Panel Costs by City

Though the size of the solar panel system is the largest cost factor to consider, you’ll also want to adjust your budget based on where you live. Solar panels tend to cost more in the Tucson area than in Phoenix.

Flagstaff, Arizona

Solar panel prices are more affordable in Flagstaff, Arizona. Expect to pay between $19,500 and $20,000, though you’ll find a wider selection of experienced solar panel installation companies in more concentrated areas like Phoenix and Tucson.

Phoenix, Arizona

In Phoenix, Arizona, solar panels cost from $19,800 to $37,000, though costs can go as low as $7,100 and as high as $53,000. The average homeowner pays $27,900 for solar panels in Phoenix.

Tucson, Arizona

Residents of Tucson, Arizona, should budget between $22,150 and $34,325 for solar panel installation, but costs may range between $15,600 on the low end and $38,000 on the high end. The typical solar panel installation costs $27,925 in Tucson.

Arizona Solar Panel Cost Factors

Aside from the size of your solar panel installation and where you live, you’ll need to factor in additional solar panel cost factors, like the type of panel and the slope of your roof.

Cell Type

Cell type refers to the type of solar panel. In general, you have three types of solar panels to choose from, though two types—polycrystalline and monocrystalline—are more common than the third (thin film).

• Polycrystalline: Polycrystalline solar panels are the most affordable option for Arizona residents. However, the lower cost yields lower efficiency, so over time, they may not be worth the investment. Polycrystalline panels are also more noticeable atop your roof; they’re large and have a distinct blue hue.

• Monocrystalline: Monocrystalline panels are considerably more expensive than polycrystalline panels, but they are also more efficient, come in a less noticeable black color, and have a lower profile when installed on your roof. Because these panels work best in bright sunlight, they make a lot of sense for Arizona homeowners.

• Thin film: Thin film panels sit somewhere in between polycrystalline and monocrystalline panels in terms of cost. They also have a low profile, so they’re less noticeable when installed. However, these panels don’t perform as well in bright sunlight; they do better in climates with moderate sunlight. For that reason, any solar panel installer near you will likely talk you out of this type of panel.

Roof Pitch

Whether you’re hiring a roofer or a solar panel installer, they’re likely to charge you a higher cost if you have a steep or difficult-to-access roof. Get multiple quotes before moving forward with your installation to compare how different installers account for your roof’s pitch

Panel Brand

The brand of panel you select can also affect your overall cost. Thoroughly research brands before purchasing to ensure you find an option in your budget that still offers high efficiency and reliability. Some common solar panel brands in Arizona include:

• Sunrun

• SunPower

• Verde Solar Power

• Zenernet

• ADT Solar

• Tesla Energy

• Palmetto Solar

• Sun Valley Solar Solutions

Installation

The average labor cost to install solar panels is about $0.50 per watt. When you hire a solar panel installer in Arizona, labor typically accounts for 17% to 25% of your overall solar panel costs.

Inverter Type

To convert the power that your solar panels collect into usable energy, solar panels require inverters. These can vary in cost:

• String inverters ($1,000–$2,000 per system) are the most affordable type of inverter. In this setup, multiple panels connect along a string, with multiple strings feeding into a single inverter. Though this keeps inverter costs down, the systems are more temperamental. If one solar panel breaks down, you won’t capture power from any other panels on the same string until a professional repairs the panel.

• Microinverters ($150–$215 per panel) are a 1:1 ratio, making them more expensive. Each solar panel gets its own microinverter; over time, this can pay off because it allows each individual panel to perform optimally.

• Power optimizers ($125–$150 per panel) fall somewhere between string inverts and microinverters. Each solar panel has its own optimizer, which converts the energy at the panel before sending it to a central inverter via string. This means that, even though multiple panels connect by string, a faulty panel won’t affect other panels’ output. Like microinverters, power optimizers are more expensive than string inverters alone.

Note: Does your solar panel system include battery storage? You may need to purchase a special battery inverter, which ranges in cost from $2,000 to $2,300.

Maintenance and Repairs

Solar panels have a high upfront cost but can lower your utility bills and offer a clean energy alternative for your home. While they can pay off over time, you’ll likely need to spend money here and there on maintenance and repairs. On average, solar panel repairs cost between $200 and $1,250 on solar panel repairs.

In a dry climate like Arizona, solar panels require cleaning more regularly than they would in an environment that sees more rainfall. Annual maintenance and cleaning is a great idea for Arizona solar panels and can cost between $150 and $350.

Solar Incentives and Rebates in Arizona

No matter where you live in the United States, you qualify for a 30% federal tax credit when you install solar panels on your home. That means, if your total solar panel roof cost in Arizona is $20,000, you can plan to receive a $6,000 credit on your federal income taxes.

The 30% Investment Tax Credit (ITC) reflects a recent change enacted by Congress; previously, the credit was 26% and was set to expire soon. Instead, Congress upped the percentage in August 2022 and extended the ITC for solar panels through 2032, at which time, the credit will drop back to 26%.

Arizona residents also qualify for a statewide tax credit of 25%, up to $1,000. That means you’ll knock up to $1,000 off your total state tax burden for the year that you install your solar panel system.

Further, Arizona residents are exempt from paying sales taxes on solar equipment. Currently, the Arizona sales tax is 5.6%.

Is It Worth Getting Solar Panels in Arizona?

Getting solar panels in Arizona can make a lot of sense for homeowners because of:

• Tax credits: Not only can Arizonans take advantage of the federal tax credit (30% of the total cost), but they can also get up to a $1,000 state tax credit when installing solar panels.

• Weather: Arizona’s sunny climate is ideal for solar panels, as long as you install polycrystalline or (preferably) monocrystalline cells. Thin film solar panels aren’t as efficient in sunny climates like Arizona.

• Buy-back program: Arizona Public Service (the largest electric provider in the state) currently buys back energy from homes with solar panels. The rate has gone down in recent years, but it’s still easy money to make if you have solar panels.

• Home value: Solar panels can increase the value of your home when you sell it. Buyers interested in sustainable energy will appreciate that they don’t have to make a large upfront investment to get solar power.

• Maintenance: Solar panels don’t require a lot of maintenance. Unless something is wrong, you might be able to get away with solar panel maintenance costs as low as $150 a year for the inspection.