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Solar Panels in Arizona: Cost, Savings & Payback (2026)

Enter your own bill below — the state's 2026 electricity rate, sun hours and installed cost are already filled in.

Typical $150/mo household in Arizona

System size

6 kW

estimated

Installed cost

$15,092

at $2.50/W

Year-one savings

$1,800

at 15.6¢/kWh

Payback

8.4 yrs

$50,535 net over 25 yrs

1What's your average monthly electric bill?

2Your state

3Tell us about your roof

Solar in Arizona: the three numbers that decide it

Sun hours. Arizona averages 6.5 peak sun hours a day (NREL), rank 1 of 51. After typical system losses that is about 1,913 kWh per installed kilowatt per year.

Electricity price. Residential power costs about 15.6¢/kWh (EIA, 2026), rank 29 of 51 — the higher the rate, the more each solar kilowatt-hour is worth.

Installed cost. Around $2.50 per watt before incentives (EnergySage marketplace data, 2026). With no federal credit for 2026 installs, this is the price you actually pay for an owned system.

Put together, a household with a $150 monthly bill would size a ~6 kW array, pay about $15,092, save roughly $1,800 in the first year and reach payback in about 8.4 yrs. Use the calculator above with your own bill.

States with similar sun hours

StateSun h/dayRate$/WPayback @ $150/mo
Arizona6.515.6¢/kWh$2.508.4 yrs
New Mexico6.414.8¢/kWh$2.609.4 yrs
Texas5.916.4¢/kWh$2.508.9 yrs
California5.833.4¢/kWh$3.005.3 yrs
Nevada5.814.2¢/kWh$2.6010.7 yrs

State figures are 2026 averages verified 2026-09-02 (EIA / NREL / EnergySage). Your utility rate, roof and installer quote will differ — see thefull state table and the main calculator.

States with similar sun hours

Related guides

Frequently asked questions

How much do solar panels cost in Arizona?
Installed cost in Arizona averages about $2.50 per watt before incentives (2026). A system sized for a $150/mo bill — roughly 6 kW — comes to about $15,092. Get quotes from several licensed installers; local pricing and equipment choices move the figure.
Is solar worth it in Arizona?
For a $150/mo bill, the estimate is $1,800 saved in year one and $50,535 net over 25 years after paying $15,092 for the system, with payback in about 8.4 yrs. Higher bills and good roof orientation shorten payback; shading and low net-metering export rates lengthen it.
Is there a federal solar tax credit in Arizona for 2026?
No. The 30% federal residential solar credit (IRC §25D) was repealed for costs paid after December 31, 2025, and that applies in every state. State and utility incentives in Arizona are not included in this estimate and can still improve the payback — check the state energy office.
How many sun hours does Arizona get?
About 6.5 peak sun hours per day on average (NREL data), ranking 1 of 51 states and DC. Each installed kilowatt therefore produces roughly 1,913 kWh a year after typical system losses.
Why does the electricity rate matter?
Arizona's residential rate is about 15.6¢/kWh (EIA, 2026), ranking 29 of 51. Savings scale directly with the rate: every kWh your panels produce replaces a kWh you would have bought at that price.

Last reviewed: September 2026. Figures and formulas are checked against their published sources; see the site's data notes.