Solar in Arizona 2020

Jessica PirroAugust 13, 2020 3072 1

Solar in Arizona 2020

Arizona is known for the Grand Canyon, spring baseball, and its heat. Heat and sun exposure typically go hand-in-hand. Where there is sun exposure, that typically means that it is a great area for solar panels. It shouldn’t be a surprise that solar panel installations thrive in the area. Solar in Arizona is firmly sitting in 3rd place in terms of solar power rankings and its future is only looking brighter.

The Cost of Solar in Arizona

In Arizona, the cost of solar panel installations on average is $2.79/W. The average size of a solar power system is 5 kW, and an average solar panel installation in the state is going to cost anywhere between $11,858 to $16,042. making the average gross cost of solar in Arizona $13,950. Solar incentives in the state help lower the cost of solar as well. The Federal Investment Tax Credit (ITC) is currently at 26% and can be combined with other local solar incentives.

Regardless of what the cost of solar panels is, there is going to be a lot of different financing options for your solar power system. You will have two options for paying for the solar panel installation. The first option is going to be buying your solar power system outright with cash, and this is typically going to offer homeowners the most returns. However, cash purchases aren’t going to be in everyone’s budget, and if homeowners can’t afford a cash purchase, you will have the option to get a solar loan or a solar lease.

2020 Cost of Solar in Arizona for a 5 kW Solar Power System


Out-Of-Pocket Costs

Net 20-Year Savings

Payback Period

Electricity Bill Offset

Cochise County

$13,345 - $18,055

$31,866 - $43,113

6.9 - 9.3 Years

90 - 122 %

Coconino County

$12,750 - $17,250

$30,066 - $40,678

6.6 - 8.9 Years

82 - 112 %

Graham County

$13,047 - $17,652

$32,387 - $43,818

7.1 - 9.6 Years

83 - 112 %

Maricopa County

$12,452 - $16,847

$38,592 - $52,213

6.5 - 8.8 Years

77 - 104 %

Mohave County

$13,005 - $17,595

$31,210 - $42,225

7.5 - 10.1 Years

81 - 110 %

Navajo County

$13,047 - $17,652

$31,805 - $43,030

6.5 - 8.8 Years

92 - 125 %

Pima County

$12,367 - $16,732

$34,199 - $46,270

6.3 - 8.6 Years

84 - 113 %

Pinal County

$12,495 - $16,905

$33,284 - $45,031

6.7 - 9.1 Years

75 - 102 %

Santa Cruz County

$13,855 - $18,745

$24,163 - $32,692

8.3 - 11.2 Years

87 - 118 %

Yavapai County

$12,580 - $17,020

$32,564 - $44,057

6.1 - 8.2 Years

83 - 112 %

Yuma County

$12,835 - $17,365

$38,131 - $51,590

6.2 - 8.4 Years

81 - 110 %

The Average Cost of Solar in Arizona Based on the Solar Power System Size in 2020

Solar Power System Size

Solar Power System Cost

Solar Power System Cost (After ITC)

3 kW



4 kW



5 kW



6 kW



7 kW



8 kW



9 kW



10 kW



Solar Incentives and Rebates in Arizona

There are several solar incentives in Arizona in addition to the federal ITC that will help homeowners lower the cost of solar. There is the Residential Arizona Solar Tax Credit is going to reimburse you 25% of the cost of solar panels, up to $1,000. The 25% will come off of your personal income tax, the year that you get your solar panel installation.

Another solar incentive that will help homeowners lower the cost of solar is going to be the Solar Equipment Sales Tax Exemption. This solar incentive is pretty self-explanatory, the Solar Equipment Sales Tax Exemption is going to relieve you from any Arizona solar tax. This means that you aren’t going to be required to pay any sales tax when you buy a solar power system. There’s also the Energy Equipment Property Tax Exemption, which means that you aren’t going to need to pay any additional property taxes on the value you are adding to your home when you get a solar panel installation.

Notable Solar Panel Installations in Arizona

A notable solar panel installation in Arizona is going to be Chase Field. The Diamondbacks stadium incorporated 75-kWh solar panel installations right outside of the ballpark’s western entrance. This solar panel installation is going to provide fans with shade while providing the stadium with green energy.

There have also been several large retail stores that have made the switch to solar power. The retailers include Albertsons and Body Sculpting Center. Macy’s has also made the switch to solar power, installing one of the largest solar power systems with 3 MW of solar power capacity.

Solar system price checker

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Great. Your address is perfect for solar. Solar incentive is still available. Select monthly utility cost and calculate the size of solar system you will need now.

Whoa ! Going solar is definitely a smart decision.

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