Solar Panel Savings in Arizona
Arizona gets 6.5 peak sun hours per day with electricity at 13.5¢/kWh. See how much you can save with solar panels.
Solar Panel Cost & Savings by System Size in Arizona
| System Size | Gross Cost | After Credits | Payback | 25-Year Savings | Annual kWh |
|---|---|---|---|---|---|
| 6 kW | $15,000 | $9,000 | 4.5 yrs | $61,002 | 14,235 |
| 8 kW | $20,000 | $12,000 | 5.8 yrs | $58,002 | 18,980 |
| 10 kW | $25,000 | $15,000 | 7.1 yrs | $55,002 | 23,725 |
| 12 kW | $30,000 | $18,000 | 8.4 yrs | $52,002 | 28,470 |
Includes 30% federal ITC + 10% Arizona state credit. Assumes 3% annual electricity rate increase and 0.5% panel degradation.
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Is Solar Worth It in Arizona?
Arizona averages 6.5 peak sun hours per day, which means an 8 kW solar system would produce approximately 18,980 kWh per year. At the state's average electricity rate of 13.5¢/kWh, that translates to significant annual savings on your electric bill.
With the federal 30% Investment Tax Credit and Arizona's 10% state incentive, an 8 kW system costing $20,000 drops to just $12,000 after credits — with a payback period of approximately 5.8 years.
Over 25 years, homeowners in Arizona can expect to save $58,002 with an 8 kW system, factoring in panel degradation and rising electricity costs. The combination of excellent sun exposure and strong incentives makes solar a very strong investment in Arizona.