Scottsdale, AZ Solar Panels: 2026 Costs, Incentives & Savings
Solar Power in Scottsdale
With over 300 days of sunshine each year, Scottsdale is an ideal place to power your home with solar. It’s easy to see why so many Scottsdale homeowners are making the switch, and why Arizona ranks 3rd in the nation for residential solar installations.
Rising energy costs add to the appeal—Arizona electricity prices climbed 22% from 2020 to 2024. If you’re curious about how home solar panels work, you’re in the right place. Let’s explore what solar installation in Scottsdale really looks like.
ARIZONA by the Numbers
3rd Most residential solar in the United States
295 Households have installed solar panels
6.5 Avg peak sun hours per day
~$63k Scottsdale average savings over 25 years
How Much Do Solar Panels Cost in Scottsdale, AZ?
See real solar installation costs in Scottsdale, built from our actual local project data. Whether you’re in North Scottsdale, McCormick Ranch, Gainey Ranch, or Old Town, this calculator gives you a clear, honest estimate based on real homes near you. Enter your details below to explore what solar could cost.
Lease Cash Purchase
Small Home Up to 2,000 sq ft
Medium Home 2,000-3,000 sq ft
Large Home Over 3,000 sq ft
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
System Cost
$23,405
Price per Watt
$2.85
State Incentives
-$1,000
Final
Cost
$22,405
Savings
Your total financial benefit
Monthly Savings
Average utility bill reduction
$144
Payback Period
Break-even point
11.0 years
25-Year
Savings
$62,945
Palmetto Reviews
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
I called Palmetto to get my part started, with the information about how things worked, information my local power company wanted and once everything was ready, to schedule the work on my home. Every time I called I had a very pleasant experience. I am hard of hearing and everyone I talked to slowed down and spoke so I had no problem hearing them! They were all informative, helpful, and very kind. I am so pleased that I had the opportunity to work with Palmetto and I highly recommend them to everyone.
Lynda Mchugh, Mesa, 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
Key Takeaways
Scottsdale gets over 300 sunny days a year, giving homes about 6.5 peak sun hours daily—ideal conditions for solar to power your home efficiently.
Arizona electricity prices rose about 19% from 2021 to 2024, so going solar can help Scottsdale homeowners rely less on the grid and stabilize their bills.
Arizona still offers valuable solar incentives, including a state tax credit, property and sales tax exemptions, plus leasing options with no upfront cost.
Scottsdale Electricity Prices
Wondering why your electric bill keeps climbing? You’re not alone—and the numbers tell a clear story for Arizona homeowners.
Electricity prices in Arizona have risen steadily, from 12.5 cents per kWh in 2021 to 14.9 cents per kWh in 2024. That’s roughly a 19% increase in just three years, and the upward trend continues.
Solar offers a way to take control. By generating your own power, Scottsdale homeowners can rely less on the grid and reduce exposure to these rising rates. Solar panel installation turns unpredictable bills into predictable energy.
Price of Energy: Arizona vs National Average
0¢
10¢
20¢
30¢
13.7¢
12.5¢
15.0¢
13.0¢
16.0¢
14.0¢
16.5¢
14.9¢
2021
2022
2023
2024
US Average
Arizona
Scottsdale Area Utility Providers
Most Scottsdale homes get electricity from APS or SRP. In 2023, APS rates averaged 15.3¢ per kWh, while SRP came in lower at 12.5¢ per kWh.
In 2023, Arizona’s average was 14.0¢ per kWh—below the national average of 16.0¢. APS runs slightly higher than the state, while SRP stays lower, reflecting each utility’s fuel mix and infrastructure costs.
Scottsdale Utilities Electricity Rates
APS
15.30¢
-4%
SRP
12.50¢
-22%
AZ Average
14.00¢
-12%
US Average
16.0¢
—
Arizona Solar Incentives
Scottsdale homeowners can tap into several solar incentives in Arizona that help lower the cost of going solar.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Arizona Residential Solar Energy Credit | Tax Credit | Scottsdale 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, with unused credit carried forward for up to five years. | Learn More |
| Arizona Solar Property Tax Exemption | Property Tax Exemption | Under Arizona law, 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. | Learn More |
| APS Storage Rewards Pilot | Rebate | Arizona Public Service (APS) customers with qualifying home battery storage systems can earn compensation for participating in the program. | Learn More |
Solar Panel Systems in Scottsdale
We mapped solar installations across the country, right down to the address. Explore the heatmap below to see how many Scottsdale neighbors have made the switch to solar.
Solar Customers
1253-5484
479-1252
21-478
1-20
Frequently Asked Questions
Does Scottsdale, AZ have net metering?
Scottsdale, AZ does not use traditional net metering. Instead, Arizona utilities like APS and SRP—which serve most Scottsdale homes—use a net billing system.
Do solar panels increase your home value in Scottsdale, AZ?
Yes, in most cases owned solar panels can increase your home’s value in Scottsdale.
How much does it cost to go solar in Scottsdale, AZ?
With a LightReach lease, Scottsdale homeowners can go solar for a low fixed monthly payment—as low as around $105/mo—with no upfront cost.
How does leasing solar work and what’s the approximate cost in Scottsdale, AZ?
With a solar lease, Palmetto owns the system while you pay one fixed monthly amount— with no upfront cost.
Do solar panels work in Scottsdale, AZ’s climate?
Yes. Scottsdale enjoys over 300 sunny days a year and about 6.5 peak sun hours daily, giving panels excellent, reliable conditions to power your home.
How much electricity can a solar system produce in Scottsdale, AZ?
In Scottsdale, a typical 10 kW home solar system produces roughly 17,600 kWh per year.
Is solar worth it financially?
For many Scottsdale homeowners, solar can be worth it financially—especially as Arizona electricity prices have climbed about 19% in recent years.