Solar Panel Cost in Phoenix, AZ (2026 Estimate)

BySunMetricLab Editorial Team·Independent solar research and calculators

Data last updated September 10, 2026

Phoenix averages about 6.6 peak sun hours a day (well above the national average, a little sunnier than the Arizona average of 6.5), and pairs with Arizona's approximate residential rate near 14¢/kWh. In the model used here, an 8 kW system produces roughly 15,420 kWh a year and trims about $2,200 off annual electricity costs, paying back its net cost in about 7.0 years (versus 7.1 years for Arizona as a whole). Local shading, roof, and your utility's export terms move the real figure.

Estimated system cost and payback in Phoenix

Costs assume roughly $2.70/watt installed; the net column applies a 30% federal credit for comparison with quotes that include it. Savings use Phoenix's sun hours and Arizona's rate.

The 30% federal Residential Clean Energy Credit ended for systems paid for after December 31, 2025 under the 2025 federal budget law. Net-after-credit figures apply only if you still qualify (for example a 2025 expenditure, or a leased system where the installer passes a credit through). Confirm with a tax professional.

Net metering and utilities around Phoenix

The Arizona Corporation Commission ended retail net metering in 2016 and replaced it with a net billing structure for the utilities it regulates, including APS and TEP. Power you use on site still offsets retail purchases, but anything sent to the grid is credited at an export rate derived from the Resource Comparison Proxy method, which is well below the retail price. That export rate is reset for new customers each year and can decline by up to 10 percent annually, though whatever rate you interconnect under is locked in for ten years.

APS serves the largest share of the state, including most of metro Phoenix, Flagstaff and Yuma; SRP covers much of the East Valley and central Phoenix; TEP serves Tucson and UNS Electric covers Mohave and Santa Cruz counties. Cooperatives including Trico, Sulphur Springs Valley, Mohave Electric and Navopache handle rural areas. Summer air conditioning dominates household usage, and both APS and SRP push solar customers onto plans with late-afternoon peak pricing or demand charges that reward shifting load away from the 4 to 7 pm window. A system oriented partly west, or a battery that discharges during the evening peak, usually improves savings more than simply adding panels.

For the full state picture, including incentives, property and sales tax treatment and the complete net metering notes, see the Arizona solar cost page.