Solar by state › Arizona › Phoenix
Solar panels in Phoenix, AZ: cost and savings
In Phoenix, AZ, each kW of solar produces about 1,650 kWh a year. A home with a $150 monthly APS / SRP bill needs roughly 6.5 kW, which costs about $17,000 before incentives and saves about $1,360 in the first year.
Updated 2026-10-20. Production uses the Arizona average until city data is refreshed. See methodology.
Savings by electric bill in Phoenix
| Monthly bill | System size | Cost before incentives | Year-1 savings | Payback (buy) |
|---|---|---|---|---|
| $100 | 4.4 kW | $11,300 | $910 | 12 yrs |
| $150 | 6.5 kW | $17,000 | $1,360 | 12 yrs |
| $250 | 10.9 kW | $28,400 | $2,270 | 12 yrs |
| $350 | 15.3 kW | $39,700 | $3,180 | 12 yrs |
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Frequently asked questions
How much do solar panels cost in Phoenix?
In Phoenix, AZ, each kW of solar produces about 1,650 kWh a year. A home with a $150 monthly APS / SRP bill needs roughly 6.5 kW, which costs about $17,000 before incentives and saves about $1,360 in the first year.
Who is the electric utility in Phoenix?
Most Phoenix homes are served by APS / SRP. APS and TEP credit exports at an RCP rate that is below retail and steps down over time, so self-consumption and batteries matter.
How many solar quotes should I get in Phoenix?
Get two or three quotes, and compare price per watt, equipment, warranty and the installer's financial strength. Several large installers have gone bankrupt since 2024, so ask who will honor the workmanship warranty if the company closes.