☀️ Arizona · 2025 data

Is solar worth it in Arizona?

At Arizona’s average rate of 14.5¢/kWh and about 1650 kWh per kW of panels a year, a typical home pays back its system in roughly 8.2 yrs after the 30% federal credit — then keeps saving. Run your own numbers below.

$ / mo
$ / watt
$
to pay back your system
System size
Net cost after 30%
Year-1 savings
25-yr net savings

Independent estimate for guidance only — not a quote or advice. Excellent sun and high output; export credits are below retail under most utilities now.

What drives solar payback in Arizona

Arizona homeowners pay about 14.5¢/kWh, which is 2.3¢ below the national average. A rooftop here generates roughly 1650 kWh per kW each year — better than the typical US figure. On exports, Arizona offers partial / below-retail export credit: Excellent sun and high output; export credits are below retail under most utilities now.

A worked example

For a Arizona home with a $160/month power bill:

8.0 kW
System size needed
$16,853
Net cost after 30% credit
$1,920
First-year savings
$44,547
25-year net savings

Assumes 3.00 $/W installed before incentives. Your actual cost, roof and usage will differ — adjust the calculator above.

Arizona solar incentives

Every estimate here already includes the 30% federal Residential Clean Energy Credit. On top of that, Arizona homeowners may qualify for state, utility or SREC incentives that change often and vary by provider. For the current, authoritative list, check DSIRE’s Arizona programs, then type any rebate into the calculator to see how it shortens your payback.

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