Arizona Solar Panel Cost (2025)
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The average solar power system cost in the Grand Canyon State is just over $12,000 but can range from $10,455 to $14,145, which is considerably lower than the national average. Arizona is a great state for a solar energy system given its sunny weather and multiple solar incentives that help you save money.
We’ve researched the best solar companies nationwide and noted Arizona’s attractive below-average solar pricing. Learn more about Arizona’s solar costs and which companies we recommend hiring to install your system.
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Arizona Solar Panel Cost
The average cost of a solar panel installation in the United States ranges from $17,430 to $23,870 after deducting the federal tax credit. However, the average solar panel system cost range in Arizona is $10,455 to $14,145. That’s several thousand dollars less than residents in many states pay. You can think of the total cost for panels in the state as $2.46 per watt.
Average Cost by System Size
Here’s what the average prices for common system sizes look like:
| System Size | System Cost |
|---|---|
|
3 kW |
$7,380 |
|
4 kW |
$9,840 |
|
5 kW |
$12,300 |
|
6 kW |
$14,760 |
|
7 kW |
$17,220 |
|
8 kW |
$19,680 |
|
9 kW |
$22,140 |
|
10 kW |
$24,600 |
Solar Installation Cost Factors
Several factors determine what you will pay for a solar energy system, including the following:
- Installation company: Some solar installers have higher rates than others. We recommend paying for a reputable company that does good work instead of trying to cut costs in this area.
- Panel brand and quality: You’ll pay more for superior efficiency and popular brands.
- Panel type: Most installers today sell primarily monocrystalline panels, which are the most expensive panel type. You can purchase polycrystalline or thin-film panels for less money, but you’ll sacrifice panel performance.
- Permitting and interconnection: Installing a solar system requires permitting that costs a small fee, plus a fee for connecting your system to the power grid.
- Roof type: If you have a roof that’s especially sloped or difficult to work on, expect to pay more in labor fees.
- System size: The bigger the system, the more you’ll pay.
How to Save on Solar Panel Installation
Most states offer solar incentives to encourage residents to switch to a renewable energy source. Arizona offers three state-level incentives:
- Property tax exemption: Residents don’t have to pay property tax on the value installing a system adds to their home.
- Residential solar tax credit: This Arizona solar tax credit reimburses you 25% of the cost of your solar panels—up to $1,000—against your personal income tax the year you install the system.
- Sales tax exemption: Arizonans don’t have to pay sales tax on solar equipment.
Unlike most states, Arizona does not have a net-metering rebate program.
Federal Solar Tax Credit
In addition to state tax incentives, one of the biggest ways to save on solar panels is the federal solar investment tax credit (ITC), also referred to as the Residential Clean Energy Credit. This is a nationwide program that originated with the Energy Policy Act of 2005. It allows you to claim 30% of your solar energy system’s cost on your federal tax bill the year you install it.
Arizona’s Top Solar Installation Companies
If you’re ready to seek out a solar provider, we recommend the following companies based on their reputation, pricing, panel selection and performance, and customer reviews.
Blue Raven Solar
Blue Raven Solar is a top-rated solar company available in Arizona. It sells monocrystalline panels from several manufacturers and offers a 25-year warranty and a two-year power production guarantee. Blue Raven lets customers finance their systems through a solar loan or full purchase at installation. The provider also has an A+ BBB rating and stellar customer reviews.
Learn more: Blue Raven Solar review
Tesla Solar
You likely know Tesla for its automotive innovation, but the company also sells solar equipment with advanced technology. Tesla Solar sells monocrystalline panels as well as solar shingles that lay flat against your roof for homeowners who prefer a more subtle appearance. The company is also known for one of the most popular solar batteries in the market, the Tesla Powerwall. Tesla has mostly positive reviews from customers and an A+ rating on BBB. Financing options include up-front cash purchases and solar loans.
Learn more: Tesla Solar review
Our Recommendation
Arizona ranks fifth in the country for solar installations, with nearly 10% of the state’s electricity coming from solar power, according to the Solar Energy Industries Association. The high number of residents investing in solar energy is likely due to the state’s below-average solar panel installation cost and lucrative solar incentives that help customers save money. Arizona’s electricity rates are also roughly 5% higher than the national average electric bill, so system buyers are in a better position to save money on monthly energy bills.
If you’re ready to make the switch to solar, we recommend SunPower, Blue Raven Solar, or Tesla Solar. Research a company’s website, warranty, customer reviews, and panel selection and performance before hiring a solar provider, and get a free quote from at least three companies before making your choice.
Arizona Solar Panel Cost FAQ
What is the average cost of installing solar panels in Arizona?
The average cost of solar panels in Arizona is $12,300.
Are solar panels in Arizona worth it?
Yes, solar panels in Arizona are worth it. System costs in Arizona are far more affordable than in most other states, and local solar incentives help buyers save even more money. Plus, the state’s higher-than-average electricity rates can be significantly reduced by switching to solar power from grid electricity. Since it’s one of the sunniest states, system owners have no trouble meeting their energy needs through solar power.
How much do solar panels cost for a 2,000-square-foot house in Arizona?
A 2,000-square-foot house typically requires a system size of 13 kilowatts. In Arizona, this size costs approximately $32,000 before incentives and $23,750 after.
Does Arizona have a solar tax credit?
Yes, Arizona has a state tax credit that reimburses you 25% of the cost of your solar panels—up to $1,000—against your personal income tax the year you install the system.
How We Chose the Top Solar Companies
We researched and analyzed dozens of solar panels and solar installation companies. We then formulated a rating system based on each solar installer or manufacturer’s services and products. We weighed several significant factors, including the quality and type of solar panels offered, the customer support network, warranty lengths and limitations, and additional benefits such as mobile apps for monitoring and customer service.
Speaking directly to representatives, we determined how each solar company personalizes its solar panel installation for each home. We also analyzed each company’s warranty options to ensure their product and performance guarantees match or exceed industry standards.
We evaluated each provider based on their rating and history with the Better Business Bureau (BBB) to determine reputation. In addition, we analyzed the 100 most recent Google Reviews for each provider across various locations and branches.
Read more: Our Methodology