Phoenix is among the hottest cities in the United States. Phoenix, ranking among the top 10 hottest cities, makes installing solar panels a cost-effective and greener option if you live in this state. In this guide, we will tell you all you need to know about solar panels in Phoenix. The cost, companies, and installation tips are just a few read below.
Solar System Installation Cost in Phoenix
Installing new equipment in your home can be a bit daunting, especially something as complex as solar panel systems. If you are new to solar energy, you must be worried about the initial installation cost. Well, we are here to guide you.
As of the latest data from 2023, Phoenix has an average solar panel cost of $2.53 per watt. The installation price of a 5kW system is around $10,700 to $14,250. These prices will be greatly affected by which company you will choose, the size of your property, and tax credits and rebates in your state. Below is the estimated cost of solar panel systems in Phoenix depending on the size of the property.
| System Size | Area It Covers | System Cost (Before Reductions) |
|---|---|---|
| 1kW | 90 sq. ft | $4,080 |
| 2kW | 180 sq. ft. | $5,100 |
| 3kW | 270 sq. ft. | $7,650 |
| 4kW | 360 sq. ft. | $10,200 |
| 5kW | 450 sq. ft. | $12,750 |
| 6kW | 540 sq. ft. | $15,300 |
| 7kW | 630 sq. ft. | $17,850 |
| 8kW | 720 sq. ft. | $20,400 |
| 9kW | 810 sq. ft. | $22,950 |
| 10kW | 900 sq. ft. | $25,500 |
Although this initial cost might be daunting, you can expect the payback period to be just 7 years, one of the fastest payback periods in the whole country. Your average 5kW solar panel system is also estimated to give you a total of $44,700 in savings for its lifespan.
Another cost you might encounter is maintenance. If you are not into labor and can’t be bothered to do it yourself, you can hire people to do it for you. Maintenance can cost around $100-$1000 annually.
We recommend you always do maintenance and check-ups for your solar energy equipment as this will not only ensure that your solar panels still function in top condition but will also ensure that the technical problems that may arise will be fixed immediately.
Incentives, Tax Credits & Rebates For Solar Panels In Phoenix
Wanting to lower the cost of your solar panel installation is a vital part to lessen the money you will put out. If the price is still pretty big for you and you are looking for a way to lessen the installation costs, you can read down below the ways you can do it.
Incentives
Energy Equipment Property Tax Exemption
Since solar panel systems add value to your property, The state of Arizona has a tax exemption for the value increase in Phoenix. According to Alternative Energy LLC, your home can have an added value of around 2-3%, the extra money that is exempted from tax.
Investment Tax Credit
The Federal Solar Investment Tax Credit has recently undergone changes in its schedule. Previously, the credit was poised to decrease to 26% in 2022 and further reduce to 22% in 2023 before ending for residential installations by 2024.
However, the latest legislation has revamped the schedule. Now, anyone who installs solar panels between 2022 and 2032 will be eligible for a 30% tax reduction on the entire installation cost. It’s essential to note that this generous percentage will reduce to 26% in 2033 and 22% in 2034, becoming non-existent by 2035.
| System Size | Area It Covers | System Cost (With ITC Reductions) |
| 1kW | 90 sq. ft | $2,960 |
| 2kW | 180 sq. ft. | $3,700 |
| 3kW | 270 sq. ft. | $5,550 |
| 4kW | 360 sq. ft. | $7,400 |
| 5kW | 450 sq. ft. | $9,250 |
| 6kW | 540 sq. ft. | $11,100 |
| 7kW | 630 sq. ft. | $12,950 |
| 8kW | 720 sq. ft. | $14,800 |
| 9kW | 810 sq. ft. | $16,650 |
| 10kW | 900 sq. ft. | $18,500 |
Net Billing
Arizona has offered net billing since 2016 as its net metering system is no longer in operation. This means that if your solar panel system produces more energy than you need, the state will compensate for it.
Savings
Since Arizona is the sunniest state in the country, investing in a solar panel system will not disappoint you. Not only will it save you tremendously as electric bills in Phoenix are higher than in other states in the country, but it can also lessen the pollution. The added cost to your property is also another investment as there is a tax exemption.
Top 9 Solar Companies in Phoenix
1. PEP Solar
PEP Solar mission is to provide energy-saving solar panels to the residents of Phoenix. The company ensures that its products are high quality and can offer the best service for your solar energy needs.
Location: 2025 W Deer Valley Rd STE 104, Phoenix, AZ 85027, United States
Contact Number: +1 623-264-6888
2. SouthFace Solar and Electric
This company aims to provide an easy, affordable and profitable solar energy service for you. As they are comprised of professionals, they can easily customize your solar power systems whether it be for residential or commercial needs. They also offer a free consultation, which is important if you are new to solar energy.
Location: 2122 W Lone Cactus Dr #4, Phoenix, AZ 85027, United States
Contact Number: +1 480-526-5544
3. Rooftop Solar
Rooftop Solar focuses on educating its clients. They are praised for their amazing customer service and seamless process.
Location: 1 N 1st St Suite 600, Phoenix, AZ 85004, United States
Contact Number: +1 480-542-6466
4. SunPower by PGT Solar
SunPower by PGT Solar is a company with decades worth of experience. This company offers a direct to manufacturer service so if you want to cut costs with your solar power systems, this company might be for you.
Location: 2 N Central Ave, Phoenix, AZ 85004, United States
Contact Number: +1 602-932-3320
5. Solar Topps
Solar Topps offers more than a decade of experience in installing and researching for the best and high-quality solar power systems for Arizonians. They believe in installing and customizing their own system without third-party companies so you can ensure the service is reflective of their values.
Location: 102 S 28th St, Phoenix, AZ 85034, United States
Contact Number: +1 480-940-1201
6. Alternative Energy, LLC
This company is a one-stop-shop for your solar system needs. They offer a wide range of products, from off-grid systems, solar panels to solar carports and air conditioning, they have it all. For as low as $78 per month, you can have an installation plan with them without a down payment. You can have a free consultation before signing any form of business with them.
Location: N 27th St, Phoenix, AZ 85032
Contact Number: +1 480-744-1803
7. FOR Energy
In business since 2010, FOR Energy aims to help their customer with their solar power system needs. They want to help with the cooling of your house all year round, reduce carbon footprint, and save more money.
Location: 4630 E Elwood St Suite 9, Phoenix, AZ 85040, United States
Contact Number: +1 480-699-1481
8. Streamline Solar
The Streamline Solar company aims to give the best and most fitting system for your needs. Through consultations, you can be sure that you can have the best solar panel energy for your home or business.
Location: 3837 E Wier Ave Suite 5, Phoenix, AZ 85040, United States
Contact Number: +1 602-777-5155
9. SunUp America, LLC
For over 30 years, SunUp America help homeowners in Arizona with their solar energy needs. Through equipping them with knowledge and consultation, SunUp America is a great company to be working with for people that are new to solar energy.
Location: 3321 E Atlanta Ave, Phoenix, AZ 85040, United States
Contact Number: +1 844-786-8729
Things To Know When Installing Solar Panels In Phoenix
Arizona State has a very dry climate. If you want to install a very cost-effective solar power system that has a low average payback time, Phoenix will not disappoint you.
Phoenix averages 300-310 sunny days annually with 7-9 peak sunlight hours daily. This is vital to the amount of solar energy your panels can harvest. As Phoenix belongs to the sunniest state in America, the amount of sunlight you can have daily is no problem at all. You don’t have to worry about getting enough sunlight as Phoenix is rich with it.
Facing your solar panels to the south is the most effective way to gather as much energy, especially during peak hours. Although few sources also advise that if you are in Arizona state, having your solar panel face west can also be a good option.
For the most optimal use, you can tilt your solar panel to 33 degrees. However, if you have a flexible solar panel it’s best to tilt them to different angles throughout the year as the season changes.
For winter you can tilt it to a 34-degree angle, 58-degree during spring and fall, and 82-degree during the summer. If you are unsure of what type of solar panel to get and where to locate them, be sure to check and consult your company of choice first.
Summary
Phoenix is one of the sunniest cities in the country and one of the highest when it comes to electric bill costs. If you want a greener and cost-effective way to have electricity in your home, going to solar energy is worth it. SSwitching to solar panels in Phoenix is a great investment, both monetarily and energy-wise.