## Solar in Arizona

Arizona is one of the best states in the country for solar — and homeowners are taking notice. The state ranks **3rd in the nation** for residential solar installations, and with nearly 300 days of sunshine per year, it’s easy to see why so many are making the switch.

If you’re curious about what going solar actually involves, you’re in the right place. This guide walks you through everything you need to know about [solar panels for your home](/content/solar/solar-panels-for-home/index.html) in Arizona — from how the installation process works to what it costs.

### ARIZONA by the Numbers

[3rd](https://www.eia.gov/electricity/data/eia861/) Most residential solar in the United States  
[295k](https://www.eia.gov/electricity/data/eia861/) Households have installed solar panels  
[6.5](/content/local/peak-sun-hours/index.html) Average daily peak sun hours  
[~$63k](/content/local/arizona/#solar-cost-calculator/index.html) Arizona average savings over 25 years

## Arizona Solar Panel Cost

Wondering what solar actually costs in Arizona? We used real installation data from homes across Phoenix, Tucson, Scottsdale, Mesa, and beyond to build this calculator. See your estimated monthly lease payment through Palmetto’s LightReach program — no upfront cost required — or explore a cash purchase. Both options are just a click away.

### System Size

This system size is designed to offset approximately **100%** of the average electricity usage for a home in Arizona.  
**Recommended System:** 8.20 kW  
**Your Monthly Payment:** Estimated monthly cost with LightReach - $105/mo

### Cost Breakdown

#### Your estimated investment
- **System Cost:** $23,405  
- **Cost Per Watt:** $2.85/W  
- **State Incentives:** $-1,000  
- **Final Cost:** $22,405

### Savings

- **Monthly Savings:** Average utility bill reduction - $144  
- **Payback Period:** Break-even point - 11.1 years  
- **25-Year Savings:** $63,152

[Get Your Personalized Quote](https://luminance.palmetto.com/home/buy-solar/step-1?utm_source=localorganic)  
Based on Palmetto Solar installations in Arizona. Current electricity rate: 14.9¢/kWh. Assumes 80% credit of retail rate.

## Palmetto Reviews

### Reviews from Customers
- Maria Diaz, Tucson, Arizona: "Our experience with Palmetto has been excellent so far. Our sales representative was very patient and answered every one of our questions until we were ready to sign up."
- Maria Martinez, Tempe, Arizona: "Palmetto installers were amazing. They kept us informed along the way, ensuring that the inspection was completed without a glitch."
- Jeff Lathrom, Prescott, Arizona: "Project Solar and specifically Palmetto made the entire process quick and easy. Very impressed with the communication all through the project."

## Key Takeaways

- Arizona ranks 3rd in the nation for residential solar, with nearly 300 days of sunshine and 6.5 average daily peak sun hours.
- Leasing solar through Palmetto’s LightReach program means no upfront cost, no maintenance worries, and a 90% Production Guarantee.
- Arizona homeowners have access to strong solar incentives, including a 25% state tax credit, a property tax exemption, and a sales tax exemption.

## Arizona Electricity Prices

Electricity in Arizona has gotten more expensive — and that trend isn’t slowing down. Here’s what the numbers actually look like.

- Arizona’s average electricity rate climbed from 12.5¢ per kWh in 2021 to 14.9¢ in 2024 — a nearly 20% increase in just three years.

Programs like Palmetto’s LightReach make it even more straightforward. With a solar lease, you pay a low fixed monthly rate, Palmetto owns and maintains the system, and there’s no upfront cost — so rising utility rates become much less of a concern.

### Price of Energy: Arizona vs National Average
| Year | Arizona | US Average |
|------|---------|------------|
| 2021 | 12.5¢  | 13.7¢     |
| 2022 | 15.0¢  | 13.0¢     |
| 2023 | 14.0¢  | 16.0¢     |
| 2024 | 14.9¢  | -          |

## Arizona Solar Incentives

Arizona homeowners have access to strong [solar incentives in Arizona](/content/local/arizona/#incentives-table/index.html) — including a state tax credit, property and sales tax exemptions, and utility rebates.

| Incentive | Type | Description  |
|-----------|------|--------------|
| Arizona Residential Solar Energy Credit | Tax Credit | Arizona homeowners can claim a state income tax credit equal to 25% of their solar system’s installed cost, up to a maximum of $1,000 per year. |
| Arizona Solar Property Tax Exemption | Property Tax Exemption | Under Arizona law, the added value from a solar energy system does not increase property tax calculations. |
| Arizona Solar Sales Tax Exemption | Sales Tax Exemption | Arizona exempts residential solar equipment and installation from the state’s 5.6% Transaction Privilege Tax. |
| Federal Battery Storage Tax Credit (30%) | Tax Credit | Homeowners may claim a 30% federal tax credit on the full installed cost if a battery storage system with at least 3 kWh of capacity is installed. |

## Arizona Solar Irradiance

Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Arizona’s intense sun, high elevation, and low humidity make it one of the best states for solar production — with long days and minimal cloud cover driving strong output year-round.

### What Can the Average Arizona Solar System Power?
#### Summer Production (July)
- **50.8 kWh/day**
#### Winter Production (December)
- **37.8 kWh/day**
#### Annual Production  
- **17662 kWh/year**

## Go Solar with LightReach — No Upfront Cost

In Arizona, Palmetto’s [LightReach program](/content/products/lightreach/index.html) offers a **solar lease** that includes everything necessary to get started — with no upfront costs.  
Palmetto owns the system and qualifies for tax credits which help pass savings to you.

## Frequently Asked Questions
- **Does Arizona have net metering?**  
**No,** Arizona has transitioned to a net billing framework.  
- **Do solar panels increase your home value in Arizona?**  
**Yes, but only if you own the system outright.**  
- **What is the estimated cost to go solar?**  
With Palmetto, as low as **$105/month** with **no upfront cost**.
- **How much electricity can a solar system produce in Arizona?**  
On average, about **6.5 peak sun hours per day** leading to roughly **17,000–19,000 kWh per year**.