Prescott, AZ Solar: 2026 Costs, Incentives & Savings
Solar Power in Prescott
With nearly 300 sunny days each year, Prescott is one of the sunniest places in the country to power your home with solar energy. In fact, Arizona ranks 3rd in the nation for residential solar installations, and it’s easy to see why so many Prescott homeowners are making the switch.
Rising energy costs also play a role—Arizona electricity prices rose 22% from 2020 to 2024. Whether you’re curious or ready to explore home solar panels, this guide explains what solar installation looks like in Prescott.
ARIZONA by the Numbers
3rd Most residential solar in the United States
295 Households have installed solar panels
6.2 Avg peak sun hours per day
~$62k Prescott average savings over 25 years
How Much Do Solar Panels Cost in Prescott, AZ?
See what solar really costs in Prescott, AZ. This calculator uses real installation data from homes across the area—including Prescott Valley, Chino Valley, and Dewey-Humboldt—to give you an honest local estimate. No guesswork, just firsthand numbers to help you understand your options with confidence.
System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in Arizona.
Recommended System
8.20 kW
Your Monthly Payment
Estimated monthly cost with LightReach
$105/mo
As low as
$105/mo
Why Lease Solar?
Following the 2025 Big Beautiful Bill, the federal 30% solar tax credit is no longer available for cash purchases. With a LightReach lease, Palmetto owns the system and still qualifies for the commercial ITC — passing those savings through to you via lower monthly payments.
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Cost Breakdown
Your estimated investment
| Component | Cost |
|---|---|
| System Cost | $23,405 |
| Price per Watt | $2.85 |
| State Incentives | -$1,000 |
| Final Cost | $22,405 |
Savings
Your total financial benefit
| Benefit | Amount |
|---|---|
| Monthly Savings | $142 |
| Payback Period | 11.1 years |
| 25-Year Savings | $62,012 |
Palmetto Reviews
Project Solar and specifically Palmetto made the entire process quick and easy. Very impressed with the communication all through the project. Excellent installation, friendly, professional, and helpful crew. Thank you so much.
Jeff Lathrom, Prescott, Arizona
I had a solar panel system installed by Palmetto one year ago and so far, everything has been great. I’m averaging about 78% production versus usage, which is pretty much exactly as expected. Given the number of panels the city would allow me to have. Customer service has also been fantastic!
Jeffrey Brown, Peoria, Arizona
Palmetto installers were amazing. They kept us informed along the way and at the end, walked us through the installation showing us the wiring and placement of each panel. They ensured that the inspection was completed without a glitch. They were amazing!!!!
Maria Martinez, Tempe, Arizona
Key Takeaways
- Prescott enjoys nearly 300 sunny days a year, making it one of the best places in the country to power your home with solar.
- Arizona electricity prices rose about 19% from 2021 to 2024, so solar can help you lock in more predictable, stable energy costs over time.
- Arizona offers a 25% state tax credit plus sales and property tax exemptions, and leasing through LightReach lets you go solar with no upfront cost.
Prescott Electricity Prices
Arizona electricity prices have steadily risen, climbing from 12.5 cents per kWh in 2021 to 14.9 cents in 2024. That’s a roughly 19% increase in just three years for local homeowners.
Solar offers a way to manage these rising costs. By generating power from Prescott’s nearly 300 sunny days a year, homeowners can offset much of the electricity they’d otherwise buy from the grid.
Price of Energy: Arizona vs National Average
| Year | Arizona | US Average |
|---|---|---|
| 2021 | 12.5¢ | 13.7¢ |
| 2022 | 14.0¢ | 15.0¢ |
| 2023 | 14.9¢ | 16.0¢ |
| 2024 | 14.9¢ | 16.5¢ |
Source: US Bureau of Labor Statistics, Energy Information Administration, Form 861
Prescott Area Utility Providers
Most Prescott homes get their power from Arizona Public Service (APS). In 2023, APS charged about 15.3¢ per kWh for electricity.
Prescott Utilities Electricity Rates
| Utility | Rate |
|---|---|
| APS | 15.30¢ |
| AZ Average | 14.00¢ |
| US Average | 16.0¢ |
Source: US Energy Information Administration, 2023, Form 861
Arizona Solar Incentives
Several state and local programs can help offset the cost of solar installation in Prescott, AZ. Explore the available solar incentives in Arizona below.
| Incentive | Type | Description | Source |
|---|---|---|---|
| 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. | Learn More |
| Arizona Solar Property Tax Exemption | Property Tax Exemption | The added value a solar energy system contributes to a home’s assessed value is fully excluded from property tax calculations. | Learn More |
| Arizona Solar Sales Tax Exemption | Sales Tax Exemption | Arizona exempts residential solar equipment and installation from the state’s 5.6% Transaction Privilege Tax (sales tax). | Learn More |
| Arizona Net Billing Policy (Statewide Overview) | Net Metering | Arizona utilities have replaced traditional net metering with net billing, compensating solar homeowners for excess electricity exported to the grid at rates below retail. | Learn More |
| APS Storage Rewards Pilot | Rebate | Arizona Public Service (APS) customers with qualifying home battery storage systems can earn approximately $110 per average kW contributed per season. | Learn More |
Prescott Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Prescott enjoys over 270 sunny days a year, high elevation, and cool temperatures—ideal conditions for solar. Even with occasional winter snow, the right system captures plenty of year-round energy.
Solar Production in Prescott by Month
| Month | 5 kW Production | 7 kW Production | 10 kW Production |
|---|---|---|---|
| January | x kWh | x kWh | x kWh |
| February | x kWh | x kWh | x kWh |
| March | x kWh | x kWh | x kWh |
| April | x kWh | x kWh | x kWh |
| May | x kWh | x kWh | x kWh |
| June | x kWh | x kWh | x kWh |
| July | x kWh | x kWh | 48.9 kWh/day |
| August | x kWh | x kWh | x kWh |
| September | x kWh | x kWh | x kWh |
| October | x kWh | x kWh | x kWh |
| November | x kWh | x kWh | x kWh |
| December | x kWh | x kWh | 34.3 kWh/day |
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.3 average homes (15 kWh/day per home)
- or Run central AC for 16 hours AND power all other appliances
- or Fully charge 4.9 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2.3 average homes (15 kWh/day per home)
- or Keep your home heating system running for 17 hours
- or Fully charge 3.4 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 12 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 208 trees
Solar Panel Systems in Prescott
We’ve mapped solar installations across the country, right down to the neighborhood. Explore this interactive map of Prescott, AZ to see how many of your neighbors have made the switch to solar.
| Solar Customers | Count |
|---|---|
| 1-102 | 1405-5484 |
| 103-686 | 687-1404 |
| See community data here |
Leasing Solar Panels
In Prescott, most homes are served by Arizona Public Service (APS), and Palmetto offers solar leasing through LightReach for APS customers. A lease lets you go solar with no upfront cost—you simply pay a fixed monthly amount based on your system’s expected production.
Unlike paying cash, leasing means Palmetto owns and maintains the panels. You skip the large investment and hand off repairs, monitoring, and upkeep, while still enjoying clean, lower-cost energy from day one.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Frequently Asked Questions
Does Prescott, AZ have net metering?
Prescott, AZ does not have traditional net metering. Instead, Arizona uses net billing, where extra solar energy sent to the grid earns a credit at a rate below retail. Most Prescott homes are served by Arizona Public Service (APS), which currently credits exports at about $0.06857 per kWh.
Do solar panels increase your home value in Prescott, AZ?
Yes, in Prescott, solar panels can increase your home’s value—but this applies to purchased or owned systems, not leased ones. A Zillow study found homes with solar panels sell for about 4.1% more.
How much does it cost to go solar in Prescott, AZ?
In Prescott, you can go solar with no upfront cost through a LightReach lease, paying a low fixed monthly payment starting around $105/mo for an average-sized home.
How does leasing solar work?
With a LightReach solar lease, Palmetto owns and installs the system while you make one simple monthly payment that covers installation, monitoring, maintenance, and a 90% Production Guarantee. There’s no upfront cost.
How much electricity can a solar system produce in Prescott, AZ?
In Prescott, a typical 10 kW home solar system produces roughly 17,000 kWh per year.
What’s the best solar company in Prescott, AZ?
At Palmetto, we combine national scale with a local focus in Prescott.
Is solar worth it financially?
For many Prescott homeowners, solar can make financial sense—especially with the city’s nearly 300 sunny days a year and Arizona electricity prices rising about 19% in recent years.