Ballpark Lab
Arizona solar estimate

Solar Panel Cost in Arizona (2026)

Installed solar in Arizona runs about $2.45 per watt — roughly 5% below the national average of $2.58/W. With the federal residential tax credit (25D) gone as of 2026, payback here rests on a $0.14/kWh power price and 6.5 daily peak sun hours.

Worked example: a typical $150/month home in Arizona

A $150/month electric bill in Arizona works out to about 12,857 kWh a year. Sizing a cash-purchase system to cover 100% of that:

System size
6.8 kW
Panels
17
Annual offset
100%
Gross cost
$19,160
Federal credit (25D)
$0
Expired 12/31/2025 — $0
State incentive
$0
Net cost
$19,160
Payback
12.7 yr
25-year savings
$26,849

Last updated June 30, 2026

Arizona solar numbers

Installed price
$2.45 / watt
Electricity price
$0.14 / kWh
Peak sun hours
6.5 hrs/day
State incentive
0%
Net-metering value
70% of retail

Local context: Among the best sun in the country, but utilities buy back excess at avoided-cost rates well below retail.

Arizona credits exported power at about 70% of the retail rate (NEM 3.0-style), so a battery to store and self-use your generation usually improves the return here.

Estimate your own Arizona system

Adjust the bill, ownership, and battery options below — it's pre-set to Arizona's pricing and sun hours.

Tell us about your home

Average monthly electric bill$210
Estimated system cost
$22,637$29,403
9.6 kW24 panels
Low $23kMost likely ~$26,020High $29k
Federal tax credit
— expired Dec 2025, we won't pretend otherwise
$0
State & utility incentives
$0
Est. annual savings
$1,786
Payback period
~12.3 yr
Net cost
$23k–$29k
25-year net savings
+$38,934
iA ballpark estimate for planning — not a final quote.
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