Average Cost per watt:
$2.77 per watt
Solar power system cost based on your location, roof, power usage, and current local offers.
Last updated: April2025
Written by
Andy Sendy
As of 2025, the average cost of solar panels in Phoenix is $2.77 per watt, making a typical 7.2 kilowatt (kW) solar system $13,960 after claiming the 30% federal solar tax credit now available.
This is lower than the average price of residential solar power systems across the United States, which is currently $3.03 per watt.
The size of a solar panel system also plays a role in how much the installation will cost.
Larger solar installations typically have a lower cost per watt because the panels can be purchased at a ‘bulk price.’ However, these larger solar systems will still have a higher total cost because they are made up of more individual panels.
System size | Avg cost per watt | Avg system cost (After tax credit) |
|---|---|---|
4 kW | $3.35 | $9,380 |
5 kW | $3.09 | $10,815 |
6 kW | $2.91 | $12,222 |
7 kW | $2.79 | $13,671 |
8 kW | $2.69 | $15,064 |
9 kW | $2.62 | $16,506 |
10 kW | $2.56 | $17,920 |
Read more: What is a kilowatt and a kilowatt-hour?
Solar panel cost calculator
Solar installation costs will vary with your location and the size of your home's electricity bill. To be meaningful, solar cost information needs to be tailored to the individual's situation.
If you enter your details into the solar calculator below, you will get a solar cost and savings estimate and find out how much solar panels will cost for your home based on current offers from your local solar installation companies.
The cost of solar energy includes more than just the equipment and installation—it also includes permitting costs, inspection costs, and installer profit margins.
These different components are what make the price of solar fluctuate between installations. Some of the factors that affect solar power system installation costs for specific homes include:
Homes that use more electricity will need more solar panels to cover their energy needs.
Although solar panels do get cheaper on a per-watt basis, the overall cost of the system will increase as more panels are added.
However, the higher a home's energy usage, the more solar panels can save homeowners energy bills.
The price of solar panels can vary depending on the type of solar panels you choose.
There are two main types of solar panels for residential solar installations: monocrystalline and polycrystalline. Monocrystalline solar panels are more efficient and the most common type today.
Polycrystalline panels have a lower efficiency rating and a slightly lower price point, but they are rarely used for home solar. The type of inverter you buy will also influence the cost of your solar system.
You may see some solar quotes with prices that seem too good to be true.
If you get quoted ridiculously low prices, the installer might use low-quality equipment or an unsustainable pricing model. You want to use a solar installer that is charging enough so that they can stay in business - as you'll be relying on them for the next 25 years!
It's important to compare multiple solar quotes to ensure that your installer offers the best quality at the best price possible.
The overall cost of solar can be influenced by the solar incentives available.
Across the U.S., homeowners can apply for the federal solar tax credit. The solar tax credit makes installing solar more cost-effective by providing homeowners with a tax credit equal to 30% of the cost of their installed solar panel system.
Local solar tax incentives and rebates can save homeowners thousands on a solar installation, especially when combined with the federal solar tax credit.
Use our solar panel calculator to see what solar incentives are available in your area.
The federal solar investment tax credit supports the cost of installation of renewable energy systems in Phoenix.
This tax credit is currently 30% of the value of the solar system, and it is claimed on your taxes in the year after installation.
Arizona also offers its own state solar tax credit. The Arizona solar tax credit is equal to 25% of solar system installation costs, up to $1,000.
Solar panel cost calculator
Solar panels can be worth it for Arizona homeowners, especially if you live in an area with high electricity rates and full retail net metering.
The following table outlines the estimated solar savings for a solar system in Phoenix:
System information | Value |
|---|---|
System Size | 7 kW |
Est. Power Generation | 12,274 kWh |
Payback Time | 6.9 years |
Gross Cost | $19,390 |
Net Cost after Solar Tax Credit | $13,573 |
Total Value of Avoided Utility Costs Over 25 Years | $65,970 |
As you can see, the payback period is relatively short and equates to a much better return on investment than the historical returns available from investing in things like shares or property.
The most important difference between buying solar panels and any other purchase is that solar panels last 25 to 30 years. This is a long time, and you will need customer service over all that time.
We recommend you find a small or mid-size, local, family-owned solar company. These companies tend to care more about you and your specific job. You don't want to be on hold with a corporation's call center for the next 25 years!
Andy Sendy is a well-known and trusted figure within the solar industry with more than 15 years of experience.
His video reviews of the leading brands of solar panels and home energy storage batteries are a must-watch each year for both homeowners and solar industry professionals alike.
In 2021, an article he wrote about a clause i...
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