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.
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
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.
- 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.
- 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.
- 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- 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.
- 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.
- 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.
- 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
- 01
Annual output per 1 kW
Location and production losses
5.587 h/day × 365 days × 80% delivered
1,631 kWh/year
- 02
Required system capacity
Annual demand divided by output
12,000 kWh ÷ 1,631 kWh per kW
7.36 kW
- 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
- 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
Data sources
- D1
Address normalization and coordinates
Google Geocoding API - D2
Residential electricity rate
EIA Open Data API v2 - D3
Solar production model
NLR PVWatts v8
State rules
Official references behind the state-specific decision checks.
3 primary references
State rules
- R1
Record the export-rate vintage
Arizona Corporation Commission renewable-energy tariffs - R2
Compare time-of-use schedules
Arizona Corporation Commission electric utility tariffs - R3
Include heat-related production losses
NLR PVWatts v8
Incentives
Tax, rebate, and compensation sources used for policy summaries.
4 policy sources · Reviewed Aug 11, 2026
Incentives
- P1
Residential solar energy credit: 25% up to $1,000
Arizona Department of Revenue, Form 310 - P2
Solar equipment transaction tax treatment: 100% state use-tax exemption
Arizona Revised Statutes Section 42-5159 - P3
Solar property-value exclusion: 100% of added value
Arizona Revised Statutes Section 42-11054 - P4
Utility-specific export credit: Rate varies by utility and tariff vintage
Arizona Corporation Commission
