Solar Panel Cost in Phoenix, AZ (2026)
Solar panel costs in Phoenix, AZ typically run near the Arizona state average. A 6 kW system in Phoenix costs about $16,600 before the 30% federal ITC, with payback around 6.6 years at local utility rates.
Quick answer
In Phoenix, a 6 kW solar panel system costs about $16,600 installed (6.6-year payback). After the 30% federal tax credit, net cost is roughly $11,650. Annual savings: ~$1,670/year at 13.8¢/kWh.
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Estimate for Arizona
$7,300net after 30% ITC
~4 kW · 10 panels · $10,500 before credits · 13.8¢/kWh
Annual savings
$1,113
Payback
6.6 yrs
25-year savings
$29,235
25-year savings timeline
Includes ~3% utility rate growth & 0.5%/yr panel degradation
Phoenix vs US Average
| Metric | AZ | US avg |
|---|---|---|
| 6 kW system (before credit) | $16,600 | $16,271 |
| Net cost after 30% ITC | $11,650 | $11,390 |
| Cost per watt | $0.00/W | — |
| Annual electricity savings | $1,670 | $1,335 |
| Payback period (years) | 6.6 yrs | 9 yrs |
| Electricity rate | 13.8¢/kWh | — |
Updated 2026-07-07. Estimates only.
What affects solar costs in Phoenix?
Phoenix–Scottsdale–Mesa offers excellent solar production (6+ peak sun hours) with APS and SRP operating different net billing rules — critical to model savings accurately.
Desert dust reduces output 2–5% without occasional cleaning. Extreme summer heat slightly reduces panel efficiency but long sunny days dominate production.
Phoenix is one of the fastest solar payback markets in the US — often 6–9 years with competitive install pricing.
Phoenix solar snapshot
- 6 kW system: $12,950 – $22,850
- After 30% ITC: $11,650
- Electric rate: 13.8¢/kWh · Peak sun: 6.5 hrs/day
- Payback: ~6.6 years · Annual savings: ~$1,670
How to maximize solar ROI in Phoenix
- Verify APS vs. SRP rate plan
- Compare Scottsdale premium vs. Mesa pricing
- Consider battery for summer peak AC
Frequently Asked Questions
How much do solar panels cost in Phoenix?
A 6 kW solar system in Phoenix, AZ typically costs $12,950–$22,850 before incentives, or $11,650 after the 30% federal tax credit.
Is solar worth it in Phoenix?
With 13.8¢/kWh electricity rates and 6.5 peak sun hours, Phoenix homeowners often see 6.6-year payback. Use our calculator for your roof and usage.
How does Phoenix compare to Arizona?
Phoenix install pricing is near the state median in Arizona.
Related pages
How We Calculate Solar Costs
MySunROI estimates combine NREL residential PV installed-price benchmarks, EIA state electricity rates, and regional labor modifiers — updated 2026-07-07.
Estimates only. Last updated 2026-07-07. Estimates based on NREL PV cost benchmarks, EIA electricity rates, and 2026 installer pricing surveys.