Solar Panel Cost in Phoenix, AZ
Estimated costs and savings for ZIP code 85001 — updated for 2026
Urgent tax credit deadlines
- Section 48E phase-out completes December 31, 2027 — projects must be placed in service by then (515 days left).
Gross Cost
$18,900
7kW system
Annual Savings
$1,468
$122/month
Payback Period
12.9 yrs
Break-even
Peak Sun Hours
5.2
hrs/day avg
Solar System Cost Breakdown — Phoenix, AZ
Estimated costs and savings for different residential solar system sizes in ZIP 85001. Costs based on AZ average of $2.70/W and utility rate of $0.13/kWh.
| System | Cost | Savings/yr | Payback |
|---|---|---|---|
| 4 kW | $10,800 | $839 | 12.9 yrs |
| 5 kW | $13,500 | $1,049 | 12.9 yrs |
| 6 kW | $16,200 | $1,258 | 12.9 yrs |
| 7 kW(typical) | $18,900 | $1,468 | 12.9 yrs |
| 8 kW | $21,600 | $1,678 | 12.9 yrs |
| 10 kW | $27,000 | $2,097 | 12.9 yrs |
Solar Production in Phoenix, Arizona
Average Peak Sun Hours
5.2 hours/day
Above average — strong solar potential
Est. Annual Production (7kW)
11,293 kWh
Based on 5.2 PSH × 7kW × 365 days × 85% efficiency
Average Utility Rate
$0.13/kWh
Moderate rates — solar still provides solid returns
Cost Per Watt in AZ
$2.70/W
Below national average — competitive market
Solar Panel FAQ — Phoenix, AZ
How much do solar panels cost in Phoenix, AZ?
A typical 7kW solar system in Phoenix, AZ (ZIP 85001) costs approximately $18,900 before any incentives. This works out to about $2.70 per watt installed. Smaller systems start around $10,800, while larger 10kW systems can cost up to $27,000.
How long is the solar payback period in Phoenix?
The average solar payback period in Phoenix, AZ is approximately 12.9 years for a 7kW system. With estimated annual savings of $1,468, the system pays for itself and then generates free electricity for the remaining 15-20+ years of its lifespan.
How much can I save with solar panels in 85001?
Homeowners in Phoenix, AZ (ZIP 85001) can save approximately $122 per month or $1,468 per year with a standard 7kW solar system. Over 25 years, total savings can exceed $36,700, depending on utility rate increases.
How many peak sun hours does Phoenix get?
Phoenix, AZ receives an average of 5.2 peak sun hours per day. This is above the national average, making solar highly effective in this area.
What size solar system do I need for my home in Phoenix?
The average home in Phoenix, AZ needs a 7kW solar system to offset their electricity usage. The exact size depends on your monthly electric bill, roof orientation, and available space. A 7kW system would produce approximately 11,293 kWh annually in ZIP 85001.
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