Solar Panel Cost in Arizona (2026)
Installed solar in Arizona runs about $2.45 per watt — roughly 5% below the national average of $2.58/W. With the federal residential tax credit (25D) gone as of 2026, payback here rests on a $0.14/kWh power price and 6.5 daily peak sun hours.
Worked example: a typical $150/month home in Arizona
A $150/month electric bill in Arizona works out to about 12,857 kWh a year. Sizing a cash-purchase system to cover 100% of that:
Last updated June 30, 2026
Arizona solar numbers
- Installed price
- $2.45 / watt
- Electricity price
- $0.14 / kWh
- Peak sun hours
- 6.5 hrs/day
- State incentive
- 0%
- Net-metering value
- 70% of retail
Local context: Among the best sun in the country, but utilities buy back excess at avoided-cost rates well below retail.
Arizona credits exported power at about 70% of the retail rate (NEM 3.0-style), so a battery to store and self-use your generation usually improves the return here.
Estimate your own Arizona system
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