A lot of people move to Phoenix for one reason: warm and sunny days. Given that the city and surrounding region receive so much sun and so little rain, it seems like a no-brainer to take advantage of the benefits of a solar panel system.
Prices for solar panels and installations have fallen by nearly 50% in recent years, according to the Solar Energy Industries Association, so incorporating a solar system into your home may be a more attractive option than ever before for Phoenicians looking to save on their energy bills. There are more incentives than ever before to help make the switch to solar easy, too. The federal tax credit, introduced within the Inflation Reduction Act, will save you 30% of the cost of your solar equipment.
There are state-level solar incentives for Phoenicians to take advantage of as well. There’s a state solar tax credit that will stack with the federal tax credit, saving you up to $1,000 more on your solar panel system purchase. Additionally, solar panels are fully exempt from sales and property taxes in Arizona.
The first step to going solar is to find the right solar company to install the panels for you. These are the best solar companies that operate in Phoenix.
Best national solar panel companies in Phoenix
There are myriad solar panel companies in Phoenix, including some national firms. Here are some of the national solar panel companies in Phoenix that are particularly notable, having made CNET’s “Best Solar Companies” list:
Palmetto Solar
Best overall
Solar panels are typically low maintenance equipment, but they’re also unfamiliar. If you want to reap the benefits of solar but will have a bit more peace of mind if someone else is making sure it’s working, Palmetto might be a good fit for you. Just remember to add the cost of Palmetto’s monitoring service in to your payback period calculations.
EnergyPal
Most flexible
EnergyPal is more than just a middleman. It’ll handle your solar installation from beginning to end while also allowing you to benefit from its proprietary engine and competitive bidding process. The company offers a range of hardware for panels, batteries and inverters, has plentiful financing options and offers responsive customer service support.
Elevation
Whole home approach
Elevation’s focus on your home’s energy efficiency isn’t the norm in the industry. If you’re planning on addressing energy efficiency first, working with Elevation allows you to keep the whole process with one company. Elevation’s solar equipment comes from well-established and well-regarded companies. Elevation’s warranties on workmanship and weatherization could be a bit longer.
Freedom Forever
Best for cash customers
Include Freedom Forever in your search if you want the backing of a national company that installs a wide variety of the most popular solar equipment available. Freedom Forever also extends a couple of products that take some of the pain and risk out of going solar, like a production guarantee and an escrow option with cash purchases. Online reviews say customer satisfaction has been low of late, though the company says that’s changing.
Tesla Solar
Most affordable
Tesla’s solar branch seems to be the least loved of Elon Musk’s ventures. Even Tesla’s Solar Roof seems to get more love.
If price is the thing you won’t budge on, consider Tesla. By all accounts, Tesla installs quality panels and makes the closest thing there is to a household name in solar storage: the Powerwall.
Where you might miss out is customer service. Discussion online seems to suggest Tesla’s service is a bit of a gamble.
Momentum Solar
All in-house installers
Momentum installs in 11 states without using subcontractors. While using in-house installers doesn’t guarantee a better experience, it does suggest you’re likely to get a more uniform experience from Momentum. The fact that Momentum backs its installations with a 25-year workmanship warranty hints at a strong belief in its crews’ ability. If Momentum is part of your search, consider the warranties against leaks that other companies offer. Momentum’s is five years, which isn’t the best.
Local solar panel installers in Phoenix
Finding solar panels in Phoenix is one thing. Having them installed is another. There are numerous options, but here are a few local companies that install solar panels.
Rooftop Solar got its start in 2008, offering services in both Arizona and California. It offers different ways to pay for installations — through cash purchases or financing — and is certified by The North American Board of Certified Energy Practitioners. The company also says that it tries to support local business partners by purchasing materials from companies based in the Southwest US.
Solar Topps is another local installer based in Phoenix. Founded in 2009, the company claims employees have installed more than 1.4 million panels and have serviced more than 20,000 customers — both residential and commercial.
How to determine which solar company is best for me
With so many options for the solar-curious in Phoenix, it can be helpful to establish some criteria for how to determine the best company for your specific project.
“The market out here is really oversaturated with a lot of solar companies,” said Scott Wedge, a solar consultant and owner of Arizona-based solar firm SunSpark Solution. “But it’s a great market, and solar can help offset rising energy costs.”
Wedge says that homeowners should ask questions such as how long a company has been installing solar, how many installations it has done, and dig into reviews. He also said it’s important to be aware of who will actually be doing the installation when hammers start to hit nails. Many times, “[t]he sales company is just consulting or selling the product, but they’re not extending warranties or doing the actual work,” he said.
With that in mind, do some homework, consider the incentives that may apply in your situation, and be sure you know whose employees will be doing the work at your home. We recommend getting at least three different quotes before locking in a contract with a solar installer.
Cost of solar panels in Phoenix
There are a lot of factors that influence the price of solar panels. While prices have decreased in recent years, many homeowners are still staring down prices in the tens of thousands of dollars. Nationally, residential solar panels cost $3.30 per watt, according to data from the energy consulting firm Wood Mackenzie. In all, that puts the cost of a 5-kilowatt solar system at around $16,500. But again, there are a lot of variables.
Some of the main factors to consider when trying to gauge solar panel costs in Phoenix or elsewhere are the efficiency rates of the panels, the costs of having them installed (which can vary widely), engineering, permitting and potential design reconfiguring costs and any applicable tax credits, rebates, and incentives which may apply in a homeowner’s specific location. If you’re adding on batteries, charge controllers, or other solar equipment, the cost will add up fast.
This isn’t meant to scare potential solar buyers away, of course, but it’s good to have an idea of all the factors involved.
Average cost of solar panels in Phoenix
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| Typical system size (kW) | Price per watt | Total installed cost (before incentives) | Total cost after 30% federal tax credit | |
|---|---|---|---|---|
| Phoenix, Arizona | 8 | $3.07 | $24,560 | $17,192 |
| National average | 6.67 | $3.67 | $31,558 | $22,091 |
The following map tracks the average total cash price, cost per watt and typical system size for solar panel systems across the US, according to data from FindEnergy.com. Hovering over your state will show you the relevant pricing information. Prices shown don’t factor in any federal or state incentives, including tax credits. Certain states don’t have any FindEnergy solar data and are grayed out on the map.
Phoenix solar panel incentives and rebates
The federal tax credit is available to all US residents looking to install solar equipment, but there are state- and local-level incentives that could help you with your own installation. Homeowners in Phoenix may also be able to take advantage of a state solar tax credit and sales and property tax exemptions on solar panels.
The chart below shows all of the incentives available to Phoenicians:
Phoenix residential solar incentives
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| Program | Description |
|---|---|
| Federal residential clean energy credit | A 30% tax credit that can be claimed for a percentage of the cost of installing a solar system |
| Income Tax Credit for Residential Solar Devices | A state tax credit of 25% of installation costs, up to a maximum of $1,000. |
| Sales tax exemption | Solar panels are fully exempt from state sales tax. |
| Property tax exemption | Solar panels are exempt from property tax. This exemption is for 100% of the increased value to a property as a result of installing a solar system. |
Installation factors to keep in mind
Installing a solar system can feel like a Herculean undertaking, as there are a host of factors and variables that can increase or decrease pricing or make your proposed system less efficient. Those include, but are not necessarily limited to, the following:
- Your roof: Solar panels will likely be installed on your home’s roof, and there are myriad factors that can create issues for installation. If your roof is old, facing in a tricky direction or is pitched at an awkward angle from the sun, it can affect a solar system’s suitability for your home. Also, if your roof is older and in need of repair, it may need to be patched or replaced so panels can be installed.
- Phoenix peak sun hours: Phoenix is a particularly sunny city. That can affect how much power your panels are able to generate. In Phoenix, homeowners can expect around 5 or 6 sun hours in a given day, among the highest in the nation.
- Heat: Though Phoenix is sunny, it’s also hot. Heat and sunlight are not the same thing, and heat might negatively impact a panel’s efficiency. Wedge said “your panels will perform exceptionally well in the fall and spring months,” but perhaps not quite as well in the summer.
- HOA regulations: Arizona has solar access laws in place, which prohibit HOAs from banning solar installations.
- Homeowners insurance: You should check your homeowners policy to make sure there are no issues with installing solar panels, and to ensure that the policy covers them as well.
- Renting vs owning: Some homeowners might opt to lease solar panels versus buying them — via a financing agreement, or with cash. Keep in mind how installation costs may come into play if you don’t actually own the panels.
How to pay for solar panels in Phoenix
For homeowners looking at their payment options for solar panels in Phoenix, there are numerous potential avenues to take. Those include various forms of borrowing to cover the costs. Here are some of the financing options you have for your solar panels:
Cash
Paying for a solar system in cash may be attractive for many reasons, and ensures that homeowners aren’t paying interest or any of the fees associated with borrowing money. But solar systems can be expensive, and many homeowners may not have tens of thousands of dollars sitting idly by.
Solar loan
It may be possible to work with a solar company to get financing for a solar system—often, this is referred to as a “solar loan.” Like any type of loan, though, it may be worthwhile to shop around to see what options are out there and to get the best applicable interest rate.
HELOC (home equity loan)
A HELOC (which stands for a “home equity line of credit”) allows homeowners to tap into their home’s equity to borrow money. This might be a good option for covering solar installation costs, assuming the homeowner has enough equity built up in their home, they’re comfortable using their home as collateral and they can find an interest rate that they’re comfortable with. Be aware that using your home as collateral means that you could lose it if you can’t keep up with your loan.
Personal loan
Personal loans are another potential avenue for borrowers and are available from a wide variety of lenders. Interest rates in the current environment may be higher than many potential borrowers would like, so be sure to shop around to see your options.
Solar lease
You may also be able to lease solar panels rather than buying them. A solar lease works more or less the same as a car lease, and homeowners will pay a monthly fee for their panels instead of buying them outright. The specifics of a lease would depend on a particular home and solar company.
Power purchase agreement
It may also be possible for Phoenicians to sign up for a power purchase agreement, which is an arrangement between homeowners and a solar company that sees the solar company retaining ownership of a solar system while installing it on a home and selling the homeowner the energy. These agreements have their pros and cons, but it may be another way to finance a solar system for your home without spending a lot of money.
How we found the best solar panel companies
The companies we listed above as “the best” are curated from CNET’s best solar companies list. Companies making the best list are scored on the equipment, warranties and customer service they offer. Then, we make sure these recommendations are available in your state. You can read a full breakdown of how we review solar companies here.
Companies listed under the local installers were chosen in a less rigorous way. We chose them because they offered something unique or notable to customers in the state, they seemed well-regarded by internet reviewers or because they were one of the few installers we could find information on in the state.
Whether we’ve completed a full review on a company or not, it’s always a good idea to get multiple quotes from different installers before choosing a company.
Phoenix solar power FAQs
What are the advantages of solar panels?
Solar panels harvest energy from the sun, which can reduce a homeowner’s energy bills. They may be particularly advantageous in a place like Phoenix, which sees more sunny days than most other parts of the country.
How long does it take to pay off solar panels?
Depending on how you choose to pay for a solar system, a homeowner may pay them off immediately with a full-cash purchase, or over many years through a financing agreement. The terms of that agreement may vary.
Are solar panels worth it in Phoenix?
For homeowners in Phoenix, solar panels may be worth the cost due to how much sun the area gets on an annual basis.
Does Phoenix offer a solar tax credit?
Phoenix, specifically, does not offer a solar tax credit, but homeowners in Phoenix can take advantage of state and federal tax incentives to lower the costs of a solar system.
