Solar Installers in Tempe, AZ
Compare solar companies in Tempe. 6.5 peak sun hours · $2.61/W avg cost · 180,587 residents.
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Tempe, Arizona is an outstanding location for residential solar energy. With 6.5 peak sun hours per day and a population of 180,587, thousands of Tempe homeowners have already made the switch to solar — and for good reason. The combination of 15.32¢/kWh electricity rates and generous federal incentives makes solar a smart financial decision.
A typical 8kW solar system in Tempe produces approximately 18,980 kWh per year. At the current average electricity rate of 15.32 cents per kWh, that translates to annual savings of approximately $2,908. Over the 25+ year lifespan of your solar panels, total estimated savings reach $58,077.
The cost of going solar in Tempe averages $2.61 per watt before incentives. For a standard 8kW residential system, that's $20,880 before the 30% federal Investment Tax Credit. After the ITC, your net cost drops to approximately $14,616. Arizona also offers a state tax credit of 25% up to $1,000, further reducing your out-of-pocket expense.
Tempe benefits from Arizona's reduced rate net metering policy, which provides credits at a reduced rate for excess energy. While not full retail, the direct savings from self-consumption still make solar highly worthwhile.
Solar panels also increase your home value. According to Zillow research, homes with solar sell for approximately 4.1% more than comparable homes without solar. In Tempe, that premium can amount to thousands of dollars in added equity — all while you enjoy lower electricity bills every month. With 8-year average payback and 25+ years of panel life, going solar in Tempe is one of the smartest home investments you can make.
Tempe Solar Cost Estimate
| System Size | Before ITC | After 30% ITC | Annual Production |
|---|---|---|---|
| 5 kW | $13,050 | $9,135 | 11,863 kWh |
| 8 kW | $20,880 | $14,616 | 18,980 kWh |
| 12 kW | $31,320 | $21,924 | 28,470 kWh |
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Solar Installers Serving Tempe
Tempe, AZ Solar FAQ
How much do solar panels cost in Tempe, AZ?▼
Solar panels in Tempe cost an average of $2.61 per watt before incentives. A typical 8kW system runs $20,880 before the 30% federal tax credit, bringing the net cost to approximately $14,616. Prices vary by installer, equipment, and roof complexity.
How much electricity will solar panels produce in Tempe?▼
Tempe receives 6.5 peak sun hours per day on average. An 8kW solar system here produces approximately 18,980 kWh per year, which is typically enough to offset 80-100% of an average household's annual electricity usage and save approximately $2,908 per year.
What solar incentives are available in Tempe, AZ?▼
Tempe residents can claim the 30% federal solar Investment Tax Credit (ITC), worth $6,264 on a typical system. Arizona also offers a state tax credit of 25% up to $1,000. Solar installations are exempt from property tax increases in Arizona.
How long is the solar payback period in Tempe?▼
The average solar payback period in Tempe, AZ is approximately 8 years. After payback, you enjoy free electricity for the remaining 15+ years of your warranty. Total 25-year savings are estimated at $58,077.
Is Tempe a good city for solar energy?▼
Yes! Tempe is excellent for solar with 6.5 peak sun hours per day — well above the national average. Combined with 15.32¢/kWh electricity rates and available incentives, most homeowners see strong returns on their solar investment.
How do I find the best solar installer in Tempe?▼
We recommend getting at least 3 quotes from licensed, insured solar installers. Compare total cost, equipment brands, warranties, and financing options. Look for installers with NABCEP certification and strong reviews. Use our free comparison tool to get matched with pre-screened Tempe solar companies.
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