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How much do solar panels cost in 2024? The answer might shock you

How much do solar panels cost in 2024? The answer might shock you

Solar power is more affordable and accessible than ever across Arizona in 2024. As one of the sunniest states, Arizona has enormous solar potential if homeowners want to save on electricity, attain energy independence, and do their part for sustainability, the reduced cost for solar panels is an extra incentive to go solar. This article will serve as a complete guide on what to expect when it comes to solar panel system pricing for a typical home in Arizona this coming year and beyond.

If you’ve considered solar power but weren’t sure if you should go for it, Sunny Energy is here to help. As the best solar company in Arizona, We want to make solar simple to understand, even if you’re not a technical expert. This guide breaks down the costs in a straightforward way. We’ll explain:

  • The costs of solar panels
  • Various factors affecting solar panels costs
  • Average cost for solar panels in Arizona
  • How much solar panels save
  • How Sunny Energy can help you save costs

Going solar is an investment, so educating yourself is best before you decide if and when solar power works for your family. Reach out to our team anytime for advice or a custom solar quote directly from the best solar company in Arizona

Understanding the costs of solar panels

While solar panels can help save you money on energy costs, it’s important to know the overall cost for solar panels so you can budget accordingly. There are several factors that contribute to the bottom line price of going solar:

1. Type of solar panels

Solar panels come in different technology types, with varying price points:

  • Monocrystalline Solar Panels: These highly-efficient panels use a single crystal silicon cell for superior energy density and output. Their sleek design and compact size make them ideal for residential rooftops. The monocrystalline solar panels are expensive but offer top-notch reliability and energy production performance making it a worthy choice.
  • Polycrystalline Solar Panels: Another option is using multi-crystal silicon cells, although less efficient. Polycrystalline solar panels offer a cost-effective alternative to monocrystalline panels despite their slightly lower efficiency. These panels remain a popular choice for budget-conscious consumers seeking a balance between cost efficiency and renewable energy production.
  • Thin-Film Solar Panels: Typically not used for homes, this flexible panel technology has even lower efficiency than crystalline silicon.

Sunny Energy – the solar installer company in Arizona uses monocrystalline panels from top manufacturers to maximize production.

2. System size:

The cost of a solar system is influenced by its size, measured in kilowatts (kW), with common residential installations ranging from 6kW to 12kWs. Let’s delve into the average cost for solar panels and systems of different sizes, both before and after factoring in the 30% federal solar tax credit and a $1,000 Arizona tax credit.

Without the federal and state solar tax credits, Arizona residents can anticipate spending between $12,000 and $36,000 for solar systems ranging from 6kW to 12kWs. However, the 30% tax credit, available for eligible residential solar systems purchased through 2032, can significantly reduce the cost for solar panels. With this Federal tax credit, and the Arizona tax credit, the price range decreases to approximately $7,400 to $25,200, providing an attractive incentive for homeowners to invest in solar energy.

With these costs, homeowners in Arizona typically see utility savings that pay for the system in 8 to 10 years. These figures demonstrate the financial feasibility of adopting solar power in Arizona and highlight the potential long-term savings for residents who make the environmentally conscious choice to harness solar energy for their homes.

3. Installation costs:

In Arizona, installation cost for solar panels is between $5,400 and $18,000 depending on two factors such as:

  • Amount of sunlight: With an annual average peak sun hours per day of 6.57 hours in Phoenix, Arizona tops in the list of sunniest states in the US. Residents here may require fewer solar panels to meet their energy needs compared to other states. This factor contributes to a more cost-effective solar installation in Arizona, making it an attractive option for homeowners seeking to harness renewable energy.
  • Installation price per Watt: The cost for solar panels installation comprises both material and labor expenses. As of the latest data, the average cost to install solar panels per watt ranges between $1.29 and $2.14 for materials. Additionally, there is an estimated 45% to 55% added cost for design, permitting, and labor. Consequently, the total cost per watt in Arizona falls within the range of $2.00 to $3.00. you should consult your solar installer for installation-related charges.

4. Federal tax credits and other incentives:

In Arizona, taking advantage of solar energy not only benefits the environment but also your wallet, thanks to the Federal Tax Credit. Installing solar panels entitles you to a substantial federal tax credits (ITC), amounting to 30% of your installation costs. The good news is that this credit has been extended until 2032, fostering a decade-long opportunity for eco-conscious homeowners.

Additionally, Arizona residents can amplify their savings with a state tax credit of $1000, providing an extra financial boost. It’s crucial to note that alongside federal and state incentives, utility rebates further sweeten the deal. While utility rebates vary by provider and are subject to change, they contribute to making your solar investment even more economically appealing.

The three utility incentives of Arizona are:

  • Federal Solar investment tax credit (ITC): 30% until 2023
  • State of Arizona tax credit: $1000
  • Utility rebate: Varies by provider and subject to change, Sunny Energy’s team of solar installers can help you understand the incentives available to you by your utility.

Factors affecting solar panels costs:

Before installing a solar panel it’s important to analyze the different factors that impact your decision. Here are few factors:

1. Roof features:

Attributes of your roof, including its space, pitch, and orientation, play a crucial role in determining the overall cost for solar panels installation. These factors impact:

  • Solar panel type: The characteristics of your roof influence the type of solar panels that can be effectively utilized.
  • Solar panel efficiency: The efficiency of each solar panel is influenced by the roof’s features, affecting the overall energy production and system effectiveness.
  • Labor costs: Roof characteristics can make installation complicated for solar installers, thereby influencing labor costs associated with solar panel setup.

Generally, there are few homes that only have a north facing roof making a south-facing orientation ideal for solar panels. However, an opposite roof plane- North/South, East/West, flat is also a viable option.

2. Grid-tied vs. off-grid

Choosing between a grid-tied and off-grid system impacts costs and functionality.

  • Grid-tied systems are linked to the local power grid, offering advantages such as a more affordable initial cost, access to backup energy from the utility company, and the potential to sell excess electricity back for bill credits.
  • On the contrary, off-grid systems operate independently of the power company, necessitating the capability to meet all household energy needs.

This autonomy raises costs in two ways: the solar system must cover average and fluctuating energy usage, and without utility backup, users must invest in their own backup system, like a generator or battery storage. Despite the higher price tag, ranging from $30,000 to $60,000, some individuals prioritize energy independence and a lifestyle off the grid.

The incremental cost of a battery – less than $10,000

Installing solar panels comes with some additional costs explained below:

1. Maintenance: Regular maintenance is crucial to ensure the optimal performance of solar panels. This can include cleaning, checking for loose connections, and monitoring overall system health. Maintenance costs can vary depending on the size of the solar installation and the specific requirements of the system.

2. Cleaning: Solar panels can accumulate dirt, dust, bird droppings, and other debris over time, reducing their efficiency. Regular cleaning may be necessary to maintain peak performance. Costs can include hiring a professional cleaning service or investing in cleaning equipment.

3. Home insurance: Installing solar panels may impact your home insurance rates. It’s important to inform your insurance provider about the installation to ensure that your system is adequately covered. Some insurance providers may offer discounts for homes with solar panels due to the reduced reliance on the grid.

4. Solar system monitoring: Monitoring systems are essential for keeping track of the performance of your solar panels. They can help detect issues early on and optimize energy production. Some solar installations come with built-in monitoring systems, while others may require additional equipment and subscription fees.

5. Tree trimming: Nearby trees can cast shadows on solar panels, reducing their efficiency. Trimming or removing trees may be necessary to maximize solar exposure. Tree trimming costs depend on the size and location of the trees.

6. Roof repair: Before installing solar panels, it’s important to ensure that the roof is in good condition. If repairs are needed, they should be addressed before installation to prevent complications later. Roof repair costs can vary based on the extent of the damage and the materials used.

7. Solar panel repair: Over time, solar panels may experience wear and tear or malfunctions. Repair costs can include labor and replacement parts. Some solar panel installations come with warranties that may cover repair costs for a certain period.

8. Solar shingles and tiles: If you opt for solar shingles or tiles instead of traditional solar panels, the cost will likely be higher. These integrated solar roofing materials are designed to blend with the overall aesthetics of the roof. Installation of solar shingles or tiles may also require specialized labor, affecting overall installation costs.

In addition to understanding the various factors affecting solar panel costs in Arizona, it’s crucial to delve into the average cost scenario for homeowners in the state. Let’s explore the average cost for a 6kW solar panel system, a size tailored to cover the typical household’s electricity needs.

Average cost for solar panels in Arizona

For Arizona homeowners in 2024, the average cost to install a 6 kW solar panel system to cover the average household’s electricity usage varies from $12,000 to $18,000. After applying the 30% federal solar tax credit and the $1,000 Arizona State tax credit, the final cost lowers to $7,400 to $11,600. Based on the average grid electricity rate of the largest utility company in the state of 16.50¢ per kWh, a solar array of this size can offset approximately 750 to 900 kWh of monthly consumption.

With solar electricity now costing $0 per kWh from your panels versus over 16.5¢ from the utility, this solar system may provide an estimated $1,485 to $1,782 in annual bill savings for the homeowner. When you factor in the total expense of $12,000 to $18,000 after the tax credits, the breakeven point on your solar panel investment comes out to approximately 8 to 10 years.

Long-term savings and return on investment:

So within 9-10 years, your new solar array will have paid for itself in energy cost savings as you continue to avoid high utility bills for decades to come. And with solar panel systems typically guaranteed for 25 years and electricity rates continuing to rise in Arizona, your long term savings and return on investment only grows over time. It’s important to note that most Arizona utilities raised rates more than 20% between 2021 and 2024.

How much do solar panels actually save?

The average savings from a 6kW solar panel system in Arizona can be estimated as follows:

1. Annual bill savings: The estimated annual bill savings for the homeowner with an average solar array is $1,748.

2. Breakeven point: The total expense after the 30% federal tax credit is $16,500. The breakeven point, where the solar panel investment pays for itself in energy cost savings, is approximately 9.43 years.

3. Long-term savings: Solar panel systems typically come with a 25-year guarantee. With electricity rates in Arizona rising around 6% per year, the long-term savings and return on investment grow over time.

4. Total monetary savings over 25 years: Assuming a steady annual savings of $1,748, over the guaranteed 25 years of the solar panel system, the estimated long-term savings would be approximately 1,748×(25−9.43)≈ $23,106.12

These figures provide a monetary perspective on the savings potential for homeowners who invest in an average solar panel system in Arizona. The upfront cost, federal tax credit, and long-term savings contribute to making solar energy an economically attractive and financially sensible choice for residents seeking both short-term and sustained financial benefits.

How can Sunny Energy help you save costs?

After understanding the various benefits and solar panel costs, Sunny Energy, one of the top rated solar companies in Arizona, employs a tailored approach to designing and installing solar solutions that align with your specific needs and budget. Our team of expert solar installers ensures optimal system sizing, taking into account your energy consumption patterns and local conditions.

By leveraging state-of-the-art technology and cost-effective practices, we strive to maximize the efficiency of your solar installation, ultimately leading to significant savings on your energy bills. Additionally, as the best solar company in Arizona, our commitment to transparency means you can make informed decisions about your investment, empowering you to enjoy the long-term financial advantages of renewable energy.


All in all, Arizona stands out as a solar-friendly state, making the installation of solar panels an advantageous choice for homeowners. With abundant sunshine throughout the year, the state’s climate provides an ideal environment for harnessing solar energy. Homeowners in Arizona can capitalize on this abundant resource to significantly reduce their reliance on traditional energy sources and, in turn, lower their electricity bills.

state incentives, tax credits, and policies further enhance the economic feasibility of adopting solar power. These favorable conditions, coupled with the declining cost for solar panels and solar technology, make investing in a solar panel system a financially wise decision for homeowners in Arizona.

With unwavering commitment to excellence, cutting-edge technology, and a proven track record of customer satisfaction, Sunny Energy emerges as the best solar company in Arizona.

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