A snapshot of what solar actually costs and pays back in Arizona right now, plus every calculator on this site pre-loaded with Arizona's numbers.
At Arizona's average residential electricity rate of $0.14/kWh and 6.5 peak sun hours per day, a standard 6kW residential system produces roughly 11,388 kWh a year. Installed at an estimated $2.60/watt, that system runs about $15,600 before incentives, with a simple payback around 10 years at full retail-rate value. Your real number depends heavily on your actual usage and roof — run it precisely in the Solar Panel Calculator, pre-loaded with Arizona's defaults.
Arizona: Net billing — export credited at an avoided-cost rate below retail. That's roughly a 55% export credit relative to the retail rate in our model — see the exact math for your own production and consumption in the Net Metering Calculator.
The federal residential tax credit (Section 25D) expired for owned systems installed after December 31, 2025 — see our 2026 federal tax credit guide for the full picture. At the state level: Arizona offers a state tax credit (capped) for residential solar plus an equipment sales tax exemption. Check the Solar Tax Credit & Incentive Calculator for a worked example, and verify current program status with a database like DSIRE before budgeting around any specific number.
Get a full cost breakdown — equipment, labor, permitting — using Arizona's regional cost estimate in the Solar Panel Cost Calculator, or see the full return-on-investment picture including degradation and rate escalation in the Solar ROI Calculator.
With an average residential rate of $0.14/kWh and net billing — export credited at an avoided-cost rate below retail, a typical 6kW system in Arizona pays back in roughly 10 years based on current estimates — run your own numbers with your actual bill for a precise figure.
A typical 6kW residential system in Arizona costs approximately $15,600 installed before any incentives, based on a regional estimate of $2.60/watt.