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Are Solar Panels Worth It in Arizona?

Find out if solar panels are worth it in Arizona. Learn about the cost, expectations of power, and whether you should invest in solar panel installation
Solar Panels
5 minutes
Written by:
Joey Cheek
Updated on:
January 27, 2023

With the rising cost of electricity, many people in Arizona are considering installing solar panels to reduce their energy bills. Solar panels are becoming increasingly popular in Arizona due to its sunny climate and abundance of sunshine. 

Since solar is still such a new type of energy source, it can be confusing to know what to expect and whether this is the right decision for you. Before making the decision to invest in solar panels, it is important to consider all the factors that could affect their long-term value. 

We explore whether solar panels are worth it in Arizona and what potential benefits they can bring. Consider a few facts from SmartSolar regarding how solar panels function to assist you. Contact us for a quote to learn more about what you can expect to pay.

How Can Solar Panels Help in Arizona?

To find out if solar panels are worth the investment in Arizona, you need to consider the potential benefits they can offer. The U.S. Energy Information Administration shares that solar panel systems in Arizona can be an excellent investment because of the amount of solar energy the state gets. It's one of the top five states in the country for solar energy resources.

One reason for this is that the average day in Arizona has seven hours of peak sunlight. That means the solar panels on those homes can work on a consistent basis during that time to generate electricity using the sun’s rays, eliminating the need to use traditional electricity to power homes. 

How Much Do Solar Panels Cost in Arizona?

To better understand if solar panels are worth your investment, you also have to think about the cost you’ll likely pay to have one installed. Data from Fixr shows that solar panels in Arizona typically range in price from $12,900 to $15,180. 

Some systems cost more or less depending on your specific energy needs. This price range is typical of a 6 kW solar power system that’s roof mounted and uses monocrystalline panels.

What Are the Benefits of Investing in Solar Panels in Arizona?

If the cost seems affordable, but you’re still not sure if you should invest in solar panel systems, consider a few of the specific benefits they offer:

Reducing dependency on higher energy costs

The cost of electricity in Arizona continues to rise yearly. As the summers get hotter and more people rely on air conditioning to keep their homes cool, there's an ever-increasing demand for electricity. That has led to an increase in the cost of your utility bills. 

If your energy bills are high, switching to solar energy could lower them or even eliminate them. Data from the EIA shows that the average electric bill in Arizona was $107.26 monthly in October of 2022. 

Consider, then, if most of that money could be saved by using a solar panel system instead. Even if you save just $100 a month and still have some minor electricity costs, that saves $1200 per year. Over time, solar panels could pay for themselves.

Reducing your dependence on utility power

If you have ever been caught without electricity on a hot summer day, you can see the value of this investment. When you move to solar energy, you no longer depend on the utility company for your energy needs. 

Your home’s solar panel system generates its own power, allowing you to not only reduce your dependence on fossil fuels but also to eliminate your concerns when the utility company fails to meet your needs.

Solar panels add value

Another way that solar panels benefit most homeowners is by adding value to your home. If you decide to sell your home in the near future, the solar panels will add value to your home, making it more in demand from interested buyers. That can be well worth the investment as well. 

You Can Save Money on Solar Panels

Another factor to consider when determining if solar is worth it in Arizona is whether or not you can lower the out-of-pocket costs you have for installing a system. There are some great ways to do this: 

1. Solar tax credit

One of the best ways to reduce the cost of solar panels is to invest in a system that qualifies for the Federal Tax Solar Credit. As noted by the Office of Energy Efficiency and Renewable Energy, this credit allows you to reduce your federal income taxes dollar-for-dollar for up to 30% of the total cost of a solar panel system installed on your home. 

2. You could lease it

If you do not want to pay anything upfront for solar energy, you could tap into a lease option. A solar panel lease, also known as a power purchase agreement, allows the local solar company to place a solar panel system on your home. You do not own that system, but you pay for the energy you use from it, often at a lower price point than the costs of using electricity from the utility company.

3. You may qualify for reduced energy costs

Even though Arizona doesn't have net metering in the traditional sense, you can sell any extra solar energy that your solar panel system makes to the utility company. In net billing, the method used, you can generate a credit rate, which is lower than the actual retail cost of electricity, but it can help to lower your electricity costs when you do need to use them.

How to Find Out How Much Solar Panels Can Save You 

Are solar panels worth it in Arizona? The best way to find that out is to see how much it will cost you to install a solar panel system on your home. You can do that easily by turning to SmartSolar. 

Take the SmartSolar quiz to help you determine just how affordable solar panels can be for your home’s energy requirements.

Joey Cheek
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Meet the author:

Joey Cheek

Joey Cheek spent 10 years on the US National Speedskating Team where he competed in two Olympic Games, winning gold, silver, and bronze medals. He attended Princeton before diving into the startup and tech world. In 2011 he launched a livestreaming platform for sports before leading a team of engineers building next-gen news and content apps for Fortune 100 companies. He is the CEO and co-founder of, whose mission is to move the earth to cheap, abundant, carbon-free energy.

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