Going solar in Arizona

In Arizona, an average home needs a 8kW solar system in order cover most of their electricity needs. Given the average residential price-per-watt of $3.5 in Arizona, a 8kW system can cost around $28,000 depending on applicable rebates and other factors.

Select your county by clicking on the map and see the potential generated solar power and panel pricing. See how it compares with the US state average.

Average out-of-pocket cost for a 5 kW system The upfront amount spent to buy and install solar.
Arizona: $17,500US Average: $19,594
Average Payback Period The number of years until you break even on the solar investment.
Arizona: 11 yearsUS Average: 13 years
Average Net 20-year savings The total amount of money saved over 20 years minus the out-of-pocket cost.
Arizona: $14,508US Average: $10,133

Solar Potential in Arizona

Estimated system size and solar electricity production per median viable roof in
Arizona.

Roof size 974sq. ft.
Capacity 13.63kW DC
Electricity 22.4kkWh AC per yr.

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Compare solar panels by system size in Arizona

Get the most value out of your roof by comparing the different benefits a given system size has.

System Size 4kW
Roof Size Min. space required
286 ft²
Electricity Value Annual Production $907 a year
Est. Price
$14,000
Savings from a 4kWthis system
  • Est. yearly production 7,167 kWh
  • Est. monthly savings $76
  • Full payback in 15 years
Environmental Impacts
  • Reduces CO2 emissions by 2.09 tons a year
  • Equivalent to planting 96 trees a year
  • Equivalent to driving 5,180 mi less a year
System Size 5kW
Roof Size Min. space required
358 ft²
Electricity Value Annual Production $1,134 a year
Est. Price
$17,500
Savings from a 5kWthis system
  • Est. yearly production 8,958 kWh
  • Est. monthly savings $94
  • Full payback in 15 years
Environmental Impacts
  • Reduces CO2 emissions by 2.62 tons a year
  • Equivalent to planting 120 trees a year
  • Equivalent to driving 6,475 mi less a year
System Size 6kW
Roof Size Min. space required
429 ft²
Electricity Value Annual Production $1,361 a year
Est. Price
$21,000
Savings from a 6kWthis system
  • Est. yearly production 10,750 kWh
  • Est. monthly savings $113
  • Full payback in 15 years
Environmental Impacts
  • Reduces CO2 emissions by 3.14 tons a year
  • Equivalent to planting 144 trees a year
  • Equivalent to driving 7,769 mi less a year
System Size 7kW
Roof Size Min. space required
501 ft²
Electricity Value Annual Production $1,588 a year
Est. Price
$24,500
Savings from a 7kWthis system
  • Est. yearly production 12,542 kWh
  • Est. monthly savings $132
  • Full payback in 15 years
Environmental Impacts
  • Reduces CO2 emissions by 3.66 tons a year
  • Equivalent to planting 168 trees a year
  • Equivalent to driving 9,064 mi less a year
System Size 8kW
Roof Size Min. space required
572 ft²
Electricity Value Annual Production $1,814 a year
Est. Price
$28,000
Savings from a 8kWthis system
  • Est. yearly production 14,333 kWh
  • Est. monthly savings $133
  • Full payback in 18 years
Environmental Impacts
  • Reduces CO2 emissions by 3.68 tons a year
  • Equivalent to planting 169 trees a year
  • Equivalent to driving 9,113 mi less a year

Arizona solar incentives, tax credit, and rebates

Arizona has 23 rebates and tax credits that you may be eligable for. Visit the official links for more details to see if you apply.

Solar incentives in AZ

Duncan Valley Electric Cooperative - SunWatts Rebate Program

Value:Up to $500

Members of the Duncan Valley Electric Cooperative can receive rebates for renewable energy systems through its SunWatts program for renewable energy systems. The program offers rebates for wind energy and photovoltaic systems of 10 kilowatts or less; members purchasing them can receive a rebate of $.05 per watt up to $500. Solar water heating systems can receive a rebate of $.50 per kilowatt-hour of their estimated energy savings for its first year. The program should encourage members to purchase systems that would help the cooperative meet its energy needs while remaining environmentally friendly.

Residential Solar and Wind Energy Systems Tax Credit

Value:Up to $1,000

Arizona is offering a Solar Energy Credit to individual taxpayers who install a solar or wind energy device at their Arizona residence. The credit can be applied against their personal income tax; the credit is one-fourth of the cost of solar or wind energy, up to $1000. The number of devices does not matter. The credit may be claimed in the year that the devices are installed or up to five years if the amount exceeds their tax liability. Taxpayers who lease the system or enter into a third-party power purchase agreement are not eligible to receive the credit.

Mohave Electric Cooperative - Renewable Energy Incentive Program

Value:Up to $2,500

Mohave Electric Cooperation has incentives to encourage its customers to install renewable energy systems in the homes and businesses, and thus help them save money on electric bills. It provides rebates for small commercial and residential photovoltaic and wind systems; however, rebates for solar water heaters are available for residential systems only. These rebates should help offset the price of those systems, making them more attractive to potential buyers and eventually helping them to help better the environment. Also, residential and business customers must meet all applicable terms and conditions with the appropriate forms submitted through their website.

Southwest Gas Corporation - Commercial High-Efficiency Equipment Rebate Program

Value:Varies

The Southwest Gas Corporation offers rebates to commercial customers in Arizona who purchase energy-efficient natural gas equipment in order to better assist environmental measures. Customers of the natural gas company may apply for custom incentives. Those commercial customers interested in obtaining a rebate for their natural gas equipment should refer to the Southwest Gas Corporation website for more information. A list of rebates available through the Southwest Gas Corporation may found here. The rebates should encourage customers of the company to better access more energy-efficient equipment for their companies' needs.

SRP - Solar Water Heating Program

Value:Varies

The Salt River Project's Solar Water Heating program provides incentives to encourage its residential customers to purchase solar water heating systems as back-ups to their electric systems, in hopes that the residential customers will use the renewable energy systems in preference to their familiar systems. The usual incentive for residential solar water heating systems is $0.30 per kilowatt-hour of the estimated annual energy savings, determined by calculating current use to determine estimated use for the next year. The incentives are pro-rated ($0.24 per kilowatt-hour) for systems where solar collectors are installed in sub-optimal locations, such as shady areas.

Tucson City - Solar Farm Permit Requirements

Value:Varies

The City of Tucson requires several permits for solar farms. This table shows all of the relevant information about the applicable regulations that apply to anyone looking to establish a large solar facility. For example, permits are required for groundwater/surface water management, review for the site/development plan, preconstruction, and the electrical permit. Permits last one day or 14 months, depending on the specific permit, so pay attention to the dates on each permit and mark them on a calendar to avoid confusion. It should be noted that some permits may not be needed, so check with the appropriate agency before paying for a permit.

Sulphur Springs Valley EC - SunWatts Rebate Program

Value:Varies

The SunWatts program offers home and business owners incentives for purchasing solar water heating systems. The ideal is that residential and business customers of various companies will take advantage of the incentives offered through the SunWatts program and upgrade their homes. Also, the solar water heating systems may encourage the homeowners and business owners to try other renewable energy systems, especially once they see how much the heating systems save them. Systems must meet all program requirements, and incentives are usually available through local companies. See the SunWatts program website for complete details on rebates offered and other incentives.

City of Phoenix - Renewable Energy Goal

Value:Varies

The Phoenix City Council approved a renewable energy goal for the city in 2008. The goal is for 15% of the city's electricity to come from renewable sources by 2025 and mirrors the state's Renewable Energy Standard. It plans to accomplish this renewable energy installation, which is city-owned or city-sponsored, mostly through public-private partnerships. The city council will review periodically the progress towards the goal, setting milestones to track progress. The Environmental Quality Commission and Public Works Department collaborated to develop the recommendation. Phoenix recently expanded its sustainability goals, which also include becoming carbon-neutral by 2060. The paper laying out these goals can be found at https://www.phoenix.gov/sustainabilitysite/Documents/COP_028%20Sustainability%20Brochure12%2C%20Feb%202017.pdf.

Renewable Energy Tax Credit for International Operations Centers (Corporate)

Value:Varies

A 2014 act of the Arizona legislature created tax incentives on new solar, wind, or other renewable energy systems used to power "international operations centers." To qualify for the credit, systems should be rated for at least 20 MW of generation capacity or produce 40,000 megawatt hours of electricity per year. "International operations center" certification is obtained through ten years of investment records in new Arizona-located capital. Additional information is available from the state department of revenue.

Solar Contractor Licensing

Value:Varies

The Arizona Registrar of Contractors does not offer a general solar electric contractor license, but the state's R-11 and C-11 electric licenses cover solar electric installations. The Registrar also has licenses for solar water heaters. There are also licenses for space heating and cooling systems, including solar thermal systems. For those interested in working with pools that include a solar pool heating system, there is another license. All contractors that work with solar energy systems must have four years of applicable work experience and pass an exam in order to obtain a license in Arizona.

Trico Electric Cooperative - SunWatts Incentive Program

Value:Varies

The Trico Electric Cooperative offers its residential and business customers a rebate for installing solar water heaters into their homes and businesses, thus helping to encourage the use of sustainable energy in those homes and businesses. Rebates equal $.40 per kilowatt that is expected to be saved in the first year of the use of solar water heating systems, as compared to the systems that they are used to using to heat their water. The rebates are offered through the SunWatts program, and should encourage its residential and business customers to look for another way to use renewable energy sources in their homes and businesses.

City of Chandler - Green Building Requirement for City Buildings

Value:Varies

In June 2008, Chandler, Arizona, adopted Resolution 4199, establishing an ordinance requiring all newly occupied city buildings larger than 5000 square feet to be designed to achieve the Silver Level of the Leadership in Energy and Environmental Design certification program, striving for higher certification levels whenever project resources permit. City projects may be exempt from the payback necessary to recover the initial cost if it takes more than ten years to recoup costs. If it is deemed infeasible, then the project shall follow as many of the LEED principles as possible. Additionally, buildings smaller than 5000 square feet must include as many of the principles as possible.

City of Scottsdale - Green Building Policy for Public Buildings

Value:Varies

Scotsdale approved a green building policy for new city buildings and remodels in 2005. All newly occupied buildings of any size are to be designed, contracted, and built to achieve Gold certification by the principles of the US Green Building Council's Leadership in Energy and Environmental Design program. Where the payback is anticipated to take more than five years, the city staff may recommend which level of LEED certification is appropriate for the building in question. In addition, ll renovation to non-occupied buildings will be designed, contracted, and built with as many of the LEED principals as is feasible.

Renewable Energy Standard

Value:Varies

The Arizona Corporation Commission is debating changes to the state's Renewable Energy Standard to expand the standard to 15% by 2025, with 30% of the renewable energy coming from distributed energy technologies. The new rules were certified as constitutional and were allowed to go forward. Prior to the 2006 rules, Arizona's original Environmental Portfolio Standard required Arizona 0.4% of its energy from renewable sources; this was increased incrementally to 60% by 2012. The RES should allow Arizona to meet its goals, and to eventually see more of its energy needs being met by renewable energy sources.

Maricopa Assn. of Governments - Solar Domestic Water Heating Permitting Standards

Value:Varies

The Maricopa Association of Governments passed permit submission requirements for residential solar domestic water heating systems on June 18, 2003, in an effort to promote uniformity. Prior to passing the permit submission requirements, consumers were seeing different standards and procedures that varied from installer to installer; this made the installation of a new system or repair of the old one difficult. By enforcing the requirements they were able to help put a lid on the chaos. The MAG is a council of governments that serves as the regional agency for the metropolitan Phoenix area. The standards were revised in May 2012.

Maricopa County - Renewable Energy Systems Zoning Ordinance

Value:Varies

The Maricopa County zoning ordinances provide for siting renewable energy systems. Renewable energy systems other than utility-scale electric generating facilities are allowed as an accessory use within any zoning district provided certain requirements are met and that any water used in the production of renewable energy systems is from a renewable water source. The ordinances also cover photovoltaic and other solar sources in yards, such as whether or not they constitute an increase in lot coverage, height limitations, and that inoperable systems must be removed within a year.

City of Scottsdale - Green Building Incentives

Value:Varies

The Scottsdale Green Building Program was the first such program with an emphasis on residential home construction. Established in 1998, it encourages environmentally responsible building in the Sonoran Desert. The program's goals are to reduce the impact of building, achieve both the long and short-term savings of energy, water, and other natural resources, and encourage a healthier indoor environment. Incentives include green building permits and inspections, technical assistance, monthly lectures, recognition on the website, free promotional materials, and a homeowner manual; depending on criteria, homeowners can be designated as either basic or advanced. Projects must complete a Green Home Rating Checklist to qualify for incentives.

SRP - Net Metering

Value:Varies

The Salt River Project modified its net-metering program for residential customers in February 2015. Effective with the April 2015 billing cycle, residential customers who generate part of the electricity onsite are billed under the Customer Generation Price Plan. Customers that have purchased their distributed energy system or signed a lease agreement before December 8, 2014, may keep their original plan for twenty years. Net-metering allows customers discounts on the energy bill if they produce more electricity than they use. While the Arizona Corporation Commission adopted net-metering rules in October 2008, the state's rules do not apply to Salt River Project customers.

Pima County - Solar & Wind Permitting Requirements

Value:Varies

Pima County has established its standards for solar and wind systems. In general, owners of such systems must provide the county with schematics of the systems. The general requirements include cut sheets for all systems equipment and a site plan. Photovoltaic systems must have a one-line diagram showing conductor and conduit sizes and types. For more information on photovoltaic system requirements, check here. Note that solar hot water heating systems require a schematic that includes a temperature relief valve. Residential lots are allowed one tower per lot for wind energy systems. Depending on the project scope, it may need permission from the Regional Flood Control District.

Interconnection Guidelines

Value:Varies

The Arizona Corporation Commission initiated a rule-making process to establish statewide interconnection standards for distributed generation. The proceedings are still in effect, and the commission has recommended that the utilities use the Interconnection Document as a guide. The state's utilities developed interconnection agreements prior to the ACC's ongoing proceedings. Each utility has adopted its own standards, sometimes based on different metrics than other utilities. It is likely that Arizona's regulated utilities will adopt the ACC's interconnection standards when the final rules are adopted in order to provide a system that will enable all utilities to provide consistent service across the state.

Phoenix City - Municipal Code 232 Residential Solar PV System Permit

Value:Varies

The City of Phoenix offers permit plans for photovoltaic use. More specific information can be found in the city's application found here. For every option listed, the existing electric service will remain and the installer must be present for any inspection. Option A: Over-the-counter review, $600 plan review with three inspections. Option B: Over-the-counter review, $450 plan review, and two inspections. Option C: No plan review, $375 administrative fee, and two inspections. Option D: Over-the-counter review, $300 plan review, and one inspection. Option E: No plan review, $225 administrative fee, and one inspection.

Renewable Energy Tax Credit for International Operations Centers (Personal)

Value:Varies

S.B. 1484 of 2014 provides a tax credit for renewable energy systems used in manufacturing that produce energy. H.B. 2528 of 2017 removes manufacturer eligibility in 2018. Eligible systems must be capable of creating at least 20 megawatts of energy or a typical annual generation of at least 40,000 megawatt-hours. The tax credit of $5 million per year for five years for each facility. Taxpayers must apply to the Department of Revenue; the sooner you apply the better as when the $10 million is gone it is gone.

City of Tucson - Solar Design Requirement for Homes

Value:Varies

In June 2008, Tuscon adopted an ordinance that requires all new single single-family homes and duplexes to be solar-ready. The ordinance was developed by a stakeholder group. New homes must either have a photovoltaic or solar water heating system installed or have the necessary hardware on hand so that such a system can be installed at a later date. This latter option allows a home to have some of the piping installed so that later installation is not that expensive. These requirements may be waived if it can be sufficiently demonstrated to a building official that compliance is not practical due to shading, building orientation, construction constraints, or the configuration of the parcel of land.

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Frequently Asked Questions

  • As a general rule, unless there are local limitations, the main limitations to the amount of solar panels you can put on your roof are the available space on your roof, your electricity usage, your providers net metering rules, and the limitations of your house hold electrical system.
  • Based on our research the average price per installed watt is $3.5 in Arizona. This means for a 10kW system you can expect to pay $35,000 though pricing can vary significantly between installers based on the projects requirements.
  • Based on a Zillow research study from 2019, home with solar panels sell for roughly 4.1% more.
  • To generate the most power, solar panels in the United States should face true south as this generally results in the solar panels receiving the most light each day throughout the course of the year. That said, given that energy prices are often variable throughout the day, your installer may recommend you rotate your panels slightly so that the panels will receive more light at the end of the day when energy prices can be more expensive. That said, for most consumers the positioning of solar panels is highly dependent on your home's roof.
  • Based on our continuously updated database of solar installers, we have found 48 verified solar install companies in Arizona

Solar installers in Arizona (48)

Freedom Forever

Temecula, CA(800) 685-1850

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

Erus Energy

Phoenix, AZ(844) 272-8336

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.

ABCO Solar

Tucson, AZ(800) 292-2280

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.

Powur PBC

Del Mar, CA(866) 467-6987

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.

Micrometer Engineering

Scottsdale, AZ(602) 790-5749

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

Solgen Power

Pasco, WA(855) 220-0778

Services

  • Installation of solar arrays.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Sunny Energy

Tempe, AZ(480) 257-3283

Services

  • Installation of solar arrays.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Technicians for Sustainability

Tucson, AZ(520) 740-0736

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Sunlink Energy

Maricopa, AZ(480) 624-8105

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

SunPro Solar

Mandeville, LA(866) 599-3643

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Auditing of energy requirements for independent energy generation.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

Solar Gain

Tucson, AZ(520) 822-8377

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

Rooftop Solar

Flagstaff, AZ(928) 213-5670

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

Hunt Electric

Salt Lake City, UT(801) 975-8844

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

The Solar Store

Tucson, AZ(520) 322-5180

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Palmetto Solar

Charleston, SC(855) 339-1831

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Entero Energy

Austin, TX(512) 551-0742

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

CNR Electric

Mesa, AZ(480) 737-1524

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Solar systems for selling electricity back to the grid.

SunPower Corporation

San Jose, CA(800) 786-7693

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

Fusion Power

Chandler, AZ(844) 387-6797

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

Sunnova Energy

Houston, TX(866) 786-6682

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

Sunrun

San Francisco, CA(833) 394-3384

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Sun Logix Energy

Palm Desert, CA(760) 531-4400

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

Entegrity

Little Rock, AR(800) 700-1414

Services

  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.

Solar Electric Freedom

Mesa, AZ(877) 765-2748

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Sunbright Solar

Tucson, AZ(520) 222-9993

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Custom Solar and Leisure

Tucson, AZ(520) 367-3683

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Solar systems for selling electricity back to the grid.
  • Consulting on all things solar related.

PE Solar

Tempe, AZ(480) 264-0690

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

City Electric Supply

Dallas, TX(866) 634-9853

Services

  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

Empire Solar Group

Salt Lake City, UT(800) 467-4562

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

KGT Renewables

Phoenix, IL

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

Precision Renewables

Snyderville CDP, UT(435) 602-4120

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

Sun Valley Solar Solutions

Chandler, AZ(480) 689-5000

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

Badass Energy

Claremont, CA(909) 320-9860

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Consulting on all things solar related.
Last Reviewed By: Nick Reese
Published: 2022-09-18