Solar panel cost in Arizona — and is it worth it in 2026?

Estimate your real solar savings in Arizona — using the April 2026 average residential electricity rate (15.48¢/kWh, EIA), 6.5 peak sun hours per day (NREL), and 2026 installed-cost estimates. No email required.

2026 update: the 30% federal residential solar tax credit (Section 25D) ended December 31, 2025. Many calculators still include it — this one doesn't. All results below are honest post-credit math for a purchased system.

How much do solar panels cost in Arizona? (2026)

Solar panels in Arizona average about $2.20 per watt installed in 2026. A system sized to cover a typical $150/month electric bill — around 6.3 kW — costs roughly $13,824 before incentives. Because the 30% federal solar tax credit ended December 31, 2025, Arizona buyers in 2026 pay the full amount minus any state incentives. Adjust the calculator below for your own bill, rate and roof.

Your average monthly electric bill ($)

Electricity rate (¢/kWh) — prefilled with the AZ average

Roof sun exposure

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System size

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Est. installed cost

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Year-1 savings

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Payback period

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25-yr net savings

How Arizona compares

Arizona ranks #4 of 50 states we track for estimated 25-year net savings at a $150/month bill. The state average electricity rate is 15.48¢/kWh versus roughly 18.83¢ nationally — lower rates mean solar kWh are worth less here, so cheap installation and good sun have to carry the math. At 6.5 peak sun hours and ~$2.20/W installed, the default scenario pays back in about 7.2 years.

Arizona incentives that still exist in 2026

State income tax credit up to $1,000, plus sales and property tax exemptions.

Frequently asked questions

Is solar worth it in Arizona in 2026?

For a typical $150/month electric bill, our model estimates a 7.2-year payback and about $43,500 in net savings over 25 years in Arizona, without any federal tax credit. Whether that is "worth it" depends on how long you plan to own the home and how you finance the system.

Is the 30% federal solar tax credit still available in 2026?

No. The residential clean energy credit (Section 25D) expired on December 31, 2025 under the One Big Beautiful Bill Act. Homeowners who purchase solar in 2026 receive no federal tax credit. Third-party-owned systems (lease or PPA) may still capture the commercial 48E credit through 2027, which can show up as lower lease rates.

What solar incentives does Arizona still offer?

State income tax credit up to $1,000, plus sales and property tax exemptions.

How much does a solar system cost in Arizona in 2026?

Installed costs in Arizona average roughly $2.20 per watt. A system sized to offset a $150/month bill (about 6.3 kW) runs around $14,000 before any state incentives.

Methodology & sources

Electricity rate: EIA Electric Power Monthly, Table 5.6.A — average residential price, April 2026 (published June 25, 2026). Prefilled for Arizona; editable above.
Solar production: 6.5 average daily peak sun hours (NREL solar resource data (average daily peak sun hours, long-term)), a 22% system derate, and 0.5%/yr panel degradation.
Cost: $2.20/W installed (2026 installed-cost estimates aggregated from published installer marketplace data; actual quotes vary).
Savings: assumes production offsets consumption at the retail rate with 2.5%/yr rate escalation. States with reduced export credits (e.g. CA NEM 3.0) will see lower real savings unless paired with storage.
Federal policy: The federal residential clean energy credit (Section 25D) expired December 31, 2025 under the One Big Beautiful Bill Act (P.L. 119-21). Purchased systems in 2026 receive no federal tax credit. Third-party-owned systems (lease/PPA) may still benefit from the commercial 48E credit through 2027.
Excludes maintenance and inverter replacement (typically $1–2k over 25 years) and financing costs.

Solar savings by state

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