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| System size | Typical home | Estimated cost |
|---|---|---|
| 6 kW | Smaller / efficient home | ~$16,500 |
| 8 kW | Average Arizona home | ~$22,000 |
| 10 kW | Larger / high-usage home | ~$28,000 |
Arizona has the strongest sunlight of any state (~6.5 peak sun hours/day) and an average residential rate around 14¢/kWh. Heavy summer cooling loads mean big bills to offset — ideal conditions for solar production.
(Programs and rates change — confirm with your utility, the Arizona Dept. of Revenue, and a tax professional.)
With excellent sun and the state credit — but no federal credit and lower export rates — most Arizona homeowners see payback in about 10–13 years, then largely free power for the rest of the system's 25+ year life. Sizing to your own usage (and considering a battery) improves the math.
Yes — a 25% state income-tax credit up to $1,000, separate from the (now-ended) federal credit. Unused amounts can carry forward up to five years.
The 30% federal residential credit ended nationwide on Dec. 31, 2025 for purchased systems. Arizona's state credit and tax exemptions still apply.
Instead of full retail net metering, Arizona credits exported solar at a lower export rate (~$0.06/kWh at APS), so using more of your own power — or adding storage — boosts savings.
Solar Cost Advisor is a free, neutral tool — we don't sell panels. We help Arizona homeowners understand real solar costs and, if they choose, connect with vetted local installers. Get your free estimate →