Everything You Need to Know About Solar Panel Cost in Arizona

Arizona gets a lot of sunshine throughout the year, making solar energy a viable alternative to traditional energy systems. Not only solar cuts down on the cost, but it also helps you adopt a cleaner way of energy consumption for the future. Arizona has actively promoted solar energy in the state by introducing tax credits and lower installation costs for its residents.

So if you’re planning to make a switch to solar or are looking to know more about solar panel cost in Arizona, here are a few things to help you out.

What is the solar panel cost in Arizona?

Solar panel cost in Arizona has seen more than a 35% drop in the last five years. Solar panel’s average cost per Watt in Arizona is $2.68. So solar installation charges in Arizona can range between $11,000 to $15,550 for 5kW systems. The state average is around $13,500. 3kW and 4kW system size can cost between $8,000 to $11,000.

You will need 6.5-8.5 years to recover solar energy investment cost but after the payback period, it really pays dividends. A 20-year period will save you north of $40,000.

The good news is that there are multiple tax credits at play when you decide to install a solar system. These credits significantly reduce the solar panel cost in Arizona.

Tax Benefits on Solar

If you’re adopting solar energy, you can take the advantage of the Federal and Arizona specific tax credits.

Federal Solar Investment Tax Credit (ITC)

The federal solar Investment Tax Credit (ITC) offers a 26% return against your income tax. According to the revised ITC, residential and commercial owners will get a tax benefit of 26% in 2020 and 22% in 2021. Commercial owners can claim a 10% benefit in 2022, but residential owners won’t have the privilege.

Arizona Solar Energy Tax Credit

Arizona has an additional set of tax policies to enable its residents to move onto solar.

  • If you’re a tax-paying resident in Arizona, you will get a 25% return on the total installation cost
  • You can buy and install solar energy systems without paying a dime on sales tax
  • Arizona also lets you install a solar system without an increase on the property tax

The tax credits on solar energy systems make a huge difference in the ultimate cost of these systems. By availing of these benefits, you can reduce solar panel installation costs by a few thousand dollars.

Solar Panel Installation Tips

If you’re planning to install solar panels in Arizona, you need to keep in mind a few things to drive down the cost.

  • If you’re a property owner, you should look for high-quality solar panels, racking systems, inverters, and storage batteries. Since the energy system in place is going to light up your house for decades to come, it’s important to make an informed purchase. Companies like SunPower, LG, and Panasonic make the best solar panels.
  • You need to research your local installers for a hassle-free installation process. Arizona Solar Wave, Black Platinum Solar, Rooftop Power, Sun Valley Solar Solutions, and Sunny Energy are a few of the highest-rated solar installers in Arizona.
  • Additionally, you can check Google’s Project Sunroof to get a clear idea of your total solar panel installation cost.


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