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
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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:
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.
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