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Updated / AZ residential estimate

Arizona solar panel cost calculator

Estimate system size, panel count, gross cost, annual production, and savings using defaults for Arizona. Enter an address or ZIP Code below to replace them with live location data.

Very strong sun resource and heavy cooling loads can make sizing attractive, while utility export rules vary by service territory.

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State data baseline

Planning sun hours
6.2 hours/dayState planning default used when API data is unavailable.
PVWatts annual yield
1,631 kWhPer 1 kW system at 20% loss. Solar resource: 6.54 kWh/m²/day; 18.6% capacity factor.
EIA residential rate
$0.1518/kWhLatest state average: 2026-06.
API baseline location
Phoenix, AZ 85004, USA33.4528, -112.0685
Location APIGoogle Geocoding API
Electricity APIEIA Open Data API v2
Production APINLR PVWatts v8

Server-side API snapshot, refreshed monthly. All three providers returned external data.Data sources and update notes

Decision brief

What changes the decision in Arizona

These state-specific checks are not included in a generic national quote. Resolve them before comparing payback claims. Supporting rules and official references are collected at the end of this page.

  1. 01Before you sign

    Record the export-rate vintage

    Arizona export compensation can depend on the utility and the year a system interconnects. Ask the installer to identify the exact tariff rider and locked-in period.

  2. 02Before you sign

    Compare time-of-use schedules

    High afternoon and evening prices can make orientation and battery dispatch more important than maximizing annual kWh alone.

  3. 03Before you sign

    Include heat-related production losses

    Strong irradiance does not eliminate module temperature losses. Compare the installer's model assumptions with the PVWatts loss and thermal model inputs.

Verified state policy

What can reduce your cost in Arizona

Review these 4 statewide or utility-level policy signals before comparing net cost. They are not automatically applied because eligibility, tax liability, utility territory, equipment, and program capacity can change.

Policy configuration verified .

Policy sources
Generally available01
Residential solar energy credit

25% up to $1,000

The nonrefundable Arizona individual income-tax credit is 25% of qualifying purchase and installation cost, capped at $1,000 per residence under the cumulative rules.

Eligibility applies02
Solar equipment transaction tax treatment

100% state use-tax exemption

The state use tax does not apply when a qualifying solar energy device is purchased from an Arizona-registered solar retailer or contractor. City tax treatment can differ.

Generally available03
Solar property-value exclusion

100% of added value

Arizona law considers an on-site solar device to add no value to the property for full-cash-value appraisal purposes.

Eligibility applies04
Utility-specific export credit

Rate varies by utility and tariff vintage

Arizona export compensation is not one statewide percentage. Confirm the current tariff and the rate vintage for the serving utility.

Calculation walkthrough

How we calculate for Arizona

A worked example using this page's baseline assumptions. Calculator results above change when you edit the inputs.

Baseline inputs

Illustrative 1,000 kWh/month household

Solar resource
5.587 peak sun hours/day
Modeled system loss
20% loss / 80% delivered
Household electricity use
12,000 kWh/year
Energy value
$0.1518 retail / $0.04 export
  1. 01

    Annual output per 1 kW

    Location and production losses

    5.587 h/day × 365 days × 80% delivered

    1,631 kWh/year

  2. 02

    Required system capacity

    Annual demand divided by output

    12,000 kWh ÷ 1,631 kWh per kW

    7.36 kW

  3. 03

    Energy-based panel count

    Rounded up; entered usable roof area can cap the result

    7.36 kW ÷ 0.4 kW per panel → round up

    19 panels

    7.6 kW

  4. 04

    Estimated first-year value

    Retail offset plus export credit

    12,000 kWh × $0.1518 + 399 kWh × $0.04

    $1,838/year

Model notes and limitationsSources and scope

Production baseline

NLR PVWatts v8 modeled a 1 kW array at 20° tilt and 180° azimuth for Phoenix, AZ 85004, USA.

Energy valuation

Self-consumed production offsets the retail rate. Production above annual use is valued at the configured export rate; utility tariffs may use different timing or settlement rules.

Not included

Roof shading, structural conditions, hourly tariffs, financing, maintenance, incentives, and tax eligibility require separate verification.

Arizona FAQ

Data updated: 2026-08-11. API baseline: Google Geocoding API, EIA Open Data API v2, and NLR PVWatts v8. Policy assumptions should be verified before purchase using the sources below.

Sources & verification

Review the original API, statute, regulator, or program documentation before relying on an estimate for a purchase, tax filing, or contract.

Data sources

Geocoding, residential electricity rates, and solar production inputs.

3 sources · Updated 2026-08-11

State rules

Official references behind the state-specific decision checks.

3 primary references

Incentives

Tax, rebate, and compensation sources used for policy summaries.

4 policy sources · Reviewed Aug 11, 2026