A real cost breakdown for a typical 6kW system in Arizona, not just a national $/watt figure.
Arizona has a fairly typical electricity rate nationally at approximately $0.14/kWh, and excellent solar resource — among the sunniest states at 6.5 peak sun hours a day. Combined with a regional installed-cost estimate of $2.60/watt, a standard 6kW residential system runs approximately $13,610 before any incentives.
| Line item | Estimated cost | Share of total |
|---|---|---|
| Equipment (panels, inverter, racking) | $8,580 | 63% |
| Labor / installation | $4,680 | 34% |
| Permitting & inspection | $350 | 3% |
| Total (before incentives) | $13,610 | 100% |
A 6kW system in Arizona costs 20% less than the average across the 25 states we track ($17,060), and the electricity rate it offsets is 12% lower than the 0.16 USD/kWh average across those same states. That combination is what actually determines whether Arizona is a faster- or slower-than-average place to go solar — a lower system cost alone doesn't help if the rate you're offsetting is also low, and vice versa. See how every state stacks up on the Electricity & Solar Rate Tracker.
At $1,594 in estimated annual value from 11,388 kWh of yearly production, this system pays back in roughly 9 years — a payback period in line with the national average. Arizona: Net billing — export credited at an avoided-cost rate below retail. On incentives specifically: Arizona offers a state tax credit (capped) for residential solar plus an equipment sales tax exemption. The federal residential tax credit (Section 25D) expired for owned systems after December 31, 2025 — see our 2026 tax credit guide for what that means for your net price.
A typical 6kW residential solar system in Arizona costs approximately $13,610 installed in 2026, based on a regional estimate of $2.27/watt — equipment usually makes up about 55% of that, labor about 30%, with the rest in permitting.
At Arizona's average rate of $0.14/kWh, a 6kW system pays back in roughly 9 years — a payback period in line with the national average. Your actual number depends on your usage and roof; check it precisely with the Solar Panel Cost Calculator.
A 6kW system in Arizona costs 20% less than the 25-state average of $17,060, while the electricity rate it offsets is 12% lower than the 0.16 USD/kWh average across those states.