Does your high electricity bill scare you? If you always have to think twice before turning on your air-conditioner then you should be looking for a solution.

We live in a modern age of technology where we come across new inventions on a daily basis. The newest technology to overcome the energy crisis is the Solar power system. This system uses sunlight and converts it into electricity.

It’s a win-win situation if you generate solar energy because its clean and natural and you don’t have to pay for it. Investing in a residential solar system is like insurance. It’s a cost-efficient technology which saves you on your electric bills so you could live a stress free life.


Installing a solar panel in your house is the best decision that you make. The installation of a solar panel in Arizona is budget-friendly and also uplifts your house value by 2% to 3%. The installation cost is based on the kW of solar panel and also it varies from city to city.

The average installation cost of a 6kW solar panel for 1500 square ft. is about 18500$. While the price per watt ranges from 2.5$ to 3.5$. The solar panels normally used in homes are ranging from 3kW to 8kW and can cost from 9250$ to 24550$ in total installation costs.

The solar installation cost in Arizona includes 26% Federal Investment Tax Credit or local incentives.


Certain factors affect the installation cost of solar panel in your house. These things will elaborate how much you have to spend on the installation of solar panels. The factors are as follows

·         Average energy usage at your home.

·         The capability of your rooftop determines how much it can capture sunlight.

·         The average cost of a solar panel in your town.

·         Demand and labor costs.

·         Rebates and incentives you get.

Besides these main factors, the solar panel installation cost also depends on the size of the solar panel. The average energy usage at home is 900 kWh per month or about 11000kWh per year.  Most people use 5 to 6kW solar panels where sunlight is easily available to reduce their energy bills.

The installation cost of solar panels also depends on the amount of sunlight. The southern states of America like Arizona capture more sunlight than northern states of America such as Florida or Georgia. In northern states, you need more solar panels to meet the same energy needs in Arizona.

Some other factors that affect the installation cost of solar panel is as follows

·         Labor Costs

·         The installation cost of Solar Mounts

·         Installation cost Solar Inverters

·         Other Costs

Labor Costs

For installing a commercial or residential solar system, you need to hire professionals who will perform the job for you. The labor costs for installation varies from area to area. The labor cost also depends upon the size of the solar system.

Installation Cost of Solar Mounts

For mounting a solar panel on the roof, you also need to install the racks that will keep your panel system exposed to the sun to capture maximum sunlight.

Installation Cost of Solar Inverter

For converting direct current (DC) power from panel to alternating current (AC) power you need to install a solar inverter so that you can use solar energy efficiently.

Other Costs

It includes local permit fees, inspection fees and also taxes on solar panels.

Roof type, Roof pitch and Roof material can also be the reason for different costing for 2 similar solar panels.


It’s impossible to have a discussion about solar panels in the U.S without mentioning Arizona. This state offers a perfect combination of bountiful sunlight and records lower solar prices. Residents of Arizona are always curious to know about more options for installing solar panels after knowing that Arizona is the third best state for solar panels. The prices of solar panels constantly change depending on a number of factors.

In Arizona, the average cost of solar panel is around $16,020. The average price of $3.15 per Watt in the U.S for year 2020 ranges from $13,188 to $19,153 . This estimated cost is based on installing an average-sized solar panel of 5kW (5000 Watt) and is exclusive of 30% Federal tax credit, 10% State tax credit, and other incentives.

·         30% Federal Tax Credit= – $4,806

·       10% Solar Tax Credit= – $1000

Solar Panels Cost in Arizona

After deducting the solar tax credits and refunds the average cost for solar panel in Arizona comes around $10,214. This estimated cost is based on a 6kW (6000 Watt) solar system. The average solar system in the U.S is 6kW which states that the average solar system in Arizona ranges around $16,020, before any federal taxes or incentives.

As of September, the new average cost of residential solar panel installation for Arizona is $2.88 per watt. In Arizona, the average size for a solar system is 5kW (5000 Watt) which means the average cost for a solar panel system is $14,400 exclusive of any federal or local taxes.

Some people still think that is it too expensive while the costs are somewhat significant. The prices have significantly dropped as compared to the past few years. The prices will lower down in the coming years because of more efficiency to produce it. It is important to take a step forward and install solar panels at your home because they are going to drop your electric bills.

Free Solar Panels in Arizona

There are many options for the installments of the solar panel either you can bear the cost at the time of installation or you can pay this large amount in installments. If you do not have enough finances to afford the solar power system, then you need not worry. Because few companies offer the option to install solar panel in your homes with 0$ down payment. After installation, you have to pay a small monthly payment which includes installation and electricity supply costs.

By offering you the lease option, the companies acquire incentives and rebates that are linked with the possession of a solar panel. But you can get other benefits such as the company offer fixed monthly payments that do not increase with the increase in utility rates. When the contract ends with the company it’s up to you whether to renew, purchase or remove the solar equipment.

This type of financing motivates many people to benefit from sunlight. It has many benefits for consumers such as you need not worry about the initial investment of the solar power system and also you need to pay only a fixed amount per month.  

But there is a disadvantage of the leased solar system; in Arizona, it drops the house value by 3 to 8%.

Savings from Solar Panels in Arizona

Solar power saves you thousands of dollars per month on your electricity bill. It’s like an investment which benefits you over the entire lifetime of your solar panel system. You start saving money the day you install it. The amount of money you save depends on some factors including the panel system itself. The Larger the system you install, the lower would be the cost per watt. The cost per watt is between $6 watt and $8 a watt, and it includes solar panel, parts, labor costs, and permits.

Other factors include the amount of sunlight your solar panel receives in a day, and the angle they are placed at. During a rainy or a cloudy day, your solar panel will receive no sunlight which means no savings, but it’s usually not the case since Arizona receives more sunshine than any other state.

The solar panels in Arizona produce 70% more power than other states. You also have the option to sell excess solar energy generated from your solar panels by net metering in your area. The APS values have exported solar generation to 10.45 cents per kWh generated. It would be a good deal as the average electricity cost in Arizona is 12.12 cents/kWh.

The saved money on your electricity bills can earn back the starting installation in 7 to 20 years. There are a lot of solar rebates available from the government and the local energy providers which speeds up the process of your refunds and returns on investment and gives you a more accurate solar panel cost.


It’s a worthy decision to power your house with sunlight in Arizona.  It not only increases your house value but also saves your money on electricity up to 100%. By acquiring it, you can get incentives and rebates from the federal government up to 30% of its cost. If you purchase it on installments, then you have to pay a fixed monthly amount irrespective of utility rates. While the leased solar system drops its market value.