Solar Installation in Phoenix, Arizona

Phoenix homeowners can save $1392 per year by switching to solar energy. With 6.5 peak sun hours daily and average electric bills of $145/month, solar panels offer an excellent return on investment.

Quick Facts: Solar in Phoenix

Average electric bill
$145/month
Peak sun hours
6.5/day
Arizona incentives
$1,000
Typical system size
7 kW
Payback period
10-12 years
20-year savings
$11,840

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Why Phoenix Homeowners Are Switching to Solar

Phoenix offers excellent conditions for solar energy production. With an average of 6.5 peak sun hours per day, your solar panels will generate enough electricity to offset 80-90% of a typical home's electricity usage.

Climate & Solar Potential

Phoenix's hot, sunny climate provides consistent sunshine year-round. The area receives approximately 300 days of sunshine annually, making it one of the top locations in Arizona for solar energy generation.

Rising Electricity Costs

APS (Arizona Public Service) or SRP (Salt River Project) customers in Phoenix pay an average of $145 per month for electricity. With electricity rates rising 3-5% annually, the financial case for solar becomes stronger each year. A typical 7 kW system can reduce your electric bill by 70-90%.

Local Solar Adoption

Solar adoption in Maricopa County has grown significantly over the past few years. Your neighbors are already enjoying lower electric bills and increased home values. The average solar installation in Phoenix increases home value by approximately $20,000.

Solar Panel Cost in Phoenix, Arizona

System Size & Pricing

The average Phoenix home with a $145/month electric bill needs a 7 kW solar system. Current pricing in Maricopa County ranges from:

Before incentives:$21,000 - $24,500
After 30% federal tax credit:$14,700 - $17,150
After federal + state incentives:$13,700 - $16,150

Your Savings Over Time

  • Year 1: $1,392 savings
  • Year 5: $7,168.8 cumulative savings
  • Year 10: $14,616 cumulative savings (system paid off)
  • Year 20: $11,840 total savings

Payback Period: Most Phoenix homeowners see full payback in 10-12 years. After that, your solar panels generate free electricity for another 15-20 years.

Arizona Solar Incentives for Phoenix Residents

Federal Solar Tax Credit (ITC)

The federal Investment Tax Credit allows you to deduct 30% of your solar installation cost from your federal taxes. For a $22,750 system, that's $6,825 in savings.

  • Available: Through 2032 (then steps down)
  • Who qualifies: Homeowners with federal tax liability
  • How to claim: IRS Form 5695 with your tax return

Arizona State Incentives

Arizona offers additional incentives including a $1,000 state tax credit for solar installations. This combines with the federal credit to significantly reduce your out-of-pocket cost.

Net Metering

APS (Arizona Public Service) or SRP (Salt River Project) offers net metering, meaning excess solar energy you produce is credited to your account. This can reduce or eliminate your electric bill during months when your system produces more than you use.

Ready to Save with Solar in Phoenix?

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