Are solar panels worth it in Arizona in 2025?
Arizona is one of the sunniest states in the U.S. and routinely sees strong production across most ZIP codes. With high sun hours and competitive installed pricing, many homeowners still see meaningful bill reductions—especially when systems are right‑sized for on‑site use and paired with the right export/Time‑of‑Use (TOU) plan. If your average bill is about $110–$240/month and your roof has good solar access (limited shading), solar in Arizona is worth a close look.
How we estimate costs and savings (plain‑English math)
- System cost: $SystemCost = CostPerWatt \times (1000 \times kW)$
- Net cost (with ITC): $NetCost = SystemCost \times 0.70$ (applies the 30% federal ITC to eligible costs)
- Annual production: $AnnualKWh \approx kW \times 365 \times SunHours \times 0.8$
- Annual savings: $AnnualSavings \approx AnnualKWh \times LocalRate$ (adjusted by export credits and TOU behavior)
- Payback: $Payback \approx \frac{NetCost}{AnnualSavings}$
We keep assumptions conservative and show the inputs for your ZIP (local $/kWh, sun hours, typical $/W, system size). Then you can compare them against 2–3 real quotes from vetted Arizona installers.
Cost of solar in Arizona (2025): $/W, system size and net price
Most Arizona homes install 6–10 kW systems. The most reliable way to compare proposals is the $‑per‑watt ($/W) figure alongside the bill of materials (panel/inverter/battery models) and workmanship warranty. Your net cost typically reflects the 30% federal ITC and Arizona’s state tax credit (often cited as “up to $1,000” — confirm current rules with your tax advisor). Final pricing varies by equipment mix, roof, interconnection, and utility plan.
Arizona solar incentives & tax credits (federal + state)
- Federal ITC (30%): Applies to eligible solar and battery costs. Consult your tax professional.
- Arizona Residential Solar Energy Credit: Arizona has historically offered a state income tax credit for residential solar equipment (commonly referenced as “up to $1,000”). Verify current eligibility and filing steps with the Arizona Department of Revenue and your advisor.
- Utility programs: Export credits, TOU plans and interconnection fees vary by utility and rate schedule.
Net metering & export credits in Arizona (APS, SRP, TEP)
Arizona’s major utilities—APS (Arizona Public Service), SRP (Salt River Project) and TEP (Tucson Electric Power)—credit exported solar differently from classic net metering. Key takeaways:
- Export credits: Many plans pay a fixed export rate per kWh (not full retail). Rates and tiers change periodically.
- TOU matters: Align usage and battery dispatch with on‑peak windows to boost self‑consumption and reduce high‑cost periods.
- Demand‑based plans (e.g., some SRP options): Batteries and smart load management can help trim demand peaks.
We’ll link to your utility’s rate/export pages so you can confirm specifics before you sign a contract.
Solar + battery in Arizona (Powerwall, Enphase, FranklinWH)
A home battery adds outage backup and helps shift daytime solar into evening peaks. In Arizona’s export/TOU structure, that can improve savings and comfort. Popular options:
- Tesla Powerwall: cohesive ecosystem, mature app, typical 10‑year limited warranty
- Enphase IQ Battery: modular sizing, inverter‑battery integration, 10‑year limited warranty
- FranklinWH: strong surge capacity for whole‑home backup, 12‑year limited warranty
Compare capacity, surge power, app features and warranty terms (years/throughput). Your quotes should specify battery brand/model and workmanship coverage in plain English.
Best solar installers in Arizona — how to compare quotes
- Equipment: panel brand/model (25‑year product/performance), inverter type (MLPE vs. string), battery brand/capacity and warranty.
- Workmanship warranty: term (often 10–25 years), coverage (roof penetrations, leaks, labor).
- Price & financing: cash vs. loan; APR, dealer fees and prepayment terms; lease/PPA only where appropriate.
- Utility modeling: export credit value, TOU windows, demand charges (if applicable), with assumptions shown.
- Permits & interconnection: steps, timeline, any utility fees.
- Credentials: active AZ licenses, insurance, NABCEP staff, local references.
Regional notes: Phoenix, Tucson, Flagstaff & beyond
- Phoenix metro (Maricopa): Excellent insolation; many designs include batteries for TOU peaks and backup.
- Tucson (Pima): Strong sun and clear roof planes; TEP export/TOU rules make right‑sizing important.
- Flagstaff & higher elevation: Cooler temps can improve panel efficiency; winter sun angles matter more in the design.
Solar for metal roofs in Arizona (standing‑seam & R‑panel)
Standing‑seam metal roofs are often ideal for solar (clamp‑on attachments with no penetrations). R‑panel/corrugated metal uses specialty brackets and seals. Ask your installer about attachment hardware, roof penetrations (if any), and how the workmanship warranty covers your roof.
Solar financing in Arizona — cash vs. loan vs. lease/PPA
- Cash: lowest lifetime cost; you keep incentives.
- Loan: spreads upfront cost; compare APR and dealer fees carefully.
- Lease/PPA: low or zero upfront; evaluate escalators and who retains incentives (not always recommended for every ZIP).
What affects solar payback in Arizona?
- Local electric rate trajectory and your usage profile (A/C load, EV charging)
- Sun hours and shading at your site
- Export credit/TOU rules (APS, SRP, TEP)
- Equipment mix (panels, inverter type, battery)
- Financing structure (APR, fees)
We present a conservative baseline and then let your quotes refine the exact payback for your ZIP and utility plan.
Our methodology and data sources (transparent, conservative)
We combine local $/W references, typical AZ system sizes, PVWatts‑style annual production (sun hours, system losses), and publicly available export/TOU references. We annotate assumptions so you can verify them with your installer and utility. Estimates are educational, not guarantees.