Solar Panel Cost Guide in Tempe, AZ (2024 Update)
- Tempe Solar Installation Cost: $10,991
- 25-Year Savings: $22,129
- Payback Period: 8.7 Years
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Average Cost of Solar Panels in Tempe
We break down average solar pricing in Tempe.
While the national average of solar panels is $2.66 per watt, solar panels in Tempe typically cost around 3.The average Tempe homeowner needs a 5.1-kilowatt system, which would cost about $10,991 with the federal tax credit, or $15,717 before the 0 tax credit is applied.
Keep in mind that the numbers above are only averages. The price you’ll pay for solar may vary based on your household energy consumption, the type of equipment you want to get, your solar contractor and more.Despite the significant initial cost, the average Tempe homeowner can save around $23,000 on their electricity bills over 20 years, which is one of the positives of solar.
For a customized quote from a local solar installer that has been pre-vetted by the EcoWatch team, click the button below.
Solar savings over time in Tempe
| Year | Return on Investment |
|---|---|
| 1 years | $-9,532 |
| 3 years | $-6,613 |
| 5 years | $-3,694 |
| 7 years | $-776 |
| 9 years | $2,143 |
| 11 years | $5,062 |
| 13 years | $7,981 |
| 15 years | $10,899 |
| 17 years | $13,818 |
| 19 years | $16,737 |
| 21 years | $19,656 |
| 23 years | $22,574 |
| 25 years | $25,493 |
Top Solar Installers in Tempe
When switching to solar energy, many homeowners prefer to use a solar installation company since overseeing your solar installation yourself can be a time-consuming project. Another good thing about going with a top solar installer is that it'll usually provide warranties and free repairs, which help protect your solar system over time.
There are several licensed solar professionals that can help you install your solar panels. Here are our suggestions:
Best National Provider
SunPower
- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
- Expensive
- Customer service varies by local dealer
Best for Leasing
Sunrun
- Expansive service area
- Many financing options
- Some reported issues with customer service
- Some reported issues with door-to-door sales
Best Social Impact
Palmetto Solar
- Expansive service area
- Makes charitable contributions
- Certified B Corp
- No leases or PPAs
- Quality of installation may vary by location
See all of the solar companies in Tempe
Factors that Affect Solar Panel Costs in Tempe
Cost is often one of the most important factors for homeowners who are considering investing in solar. There are a few primary factors that determine your overall cost in Tempe: solar equipment and system size, financing options and the solar installation company you choose. We’ll cover each of these briefly below.
Solar Equipment
One of the most significant factors to consider when it comes to the cost of installing solar panels is the size of the solar system, which is measured in kilowatts (kW). The more energy your household uses, the larger your system will likely need to be. You can expect to spend around $3,070 per kilowatt in Tempe.The brand and kind of equipment you get for your solar system can increase or decrease the price quite significantly. If you prefer a brand name like Tesla or SunPower, these often have a higher price tag than other brands. Efficiency also matters. Whether you’re opting for high efficiency because you have a small roof or just want maximum energy production, you will be looking at a higher equipment cost, but this can typically lead to more savings over time. Also, if you want extra equipment like an electric vehicle charger or solar batteries, this will also raise the cost.
Solar Financing Terms
Many homeowners find the average cost of solar in Tempe to be too steep, even if the investment pays off over time. Fortunately, almost every solar company in the area provides access to financing options. Solar loans substantially decrease upfront costs for most homeowners, but they also lead to higher prices over time because of interest.When figuring out your overall cost, you should also calculate the interest you’ll pay if you go with a solar loan. Also, paying more on your down payment can lower the total interest paid over time.
Solar Panel Installation Company
Finally, the company you choose to install your solar panel system can impact how much it costs. Tempe’s solar companies all have different labor costs and add varying upcharges to equipment. Additionally, some companies in Tempe are more knowledgeable about local solar incentives and can help you make good use of additional rebates or tax exemptions. However, they may charge more for that service. Even if they cost more upfront, they could help you save more money in the long run.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $3.19 | $13,410 | $23,512 | 9.1 years |
| 8 kW | $3.13 | $17,536 | $31,693 | 8.9 years |
| 10 kW | $3.07 | $21,490 | $40,046 | 8.7 years |
| 12 kW | $3.01 | $25,272 | $48,571 | 8.6 years |
| 14 kW | $2.95 | $28,883 | $57,267 | 8.4 years |
| 16 kW | $2.89 | $32,321 | $66,136 | 8.2 years |
| 18 kW | $2.82 | $35,587 | $75,177 | 8.0 years |
| 20 kW | $2.76 | $38,682 | $84,389 | 7.9 years |
How to Save on Solar Panels
The solar panel company you go with will be a major factor in determining not only your total costs, but also the kinds of solar panel brands, warranties, and other equipment you have access to. When choosing a solar company, there are a few important things you should take into account, such as:
- Warranty: Warranties that provide coverage for panel repairs and maintenance over a long period of time such as 25 years are the best you can get in the business, and offering that kind of warranty is one sign of a quality company.
- Reputation: Companies that have been in business for many years likely have a solid reputation. This is important because it ensures that it will not only see your solar installation through, but will also provide quality aftercare and customer service, such as part repairs and replacements.
- Solar Panel Brands: Each solar panel brand and kind has varying levels of quality, longevity and efficiency. They will come at different prices as well. The company you choose has an impact on which solar panel brands you have access to.
- Contract: Even though reading through a contract can take a lot of time, it’s important to do it fully so you can make sure you understand what services your solar company will provide and the terms of the warranty.
Best National Provider
SunPower
- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
- Expensive
- Customer service varies by local dealer
Best for Leasing
Sunrun
- Expansive service area
- Many financing options
- Some reported issues with customer service
- Some reported issues with door-to-door sales
Best Social Impact
Palmetto Solar
- Expansive service area
- Makes charitable contributions
- Certified B Corp
- No leases or PPAs
- Quality of installation may vary by location
EcoWatch's Tempe, AZ Solar Cost FAQs
How much does it cost to install solar panels in Tempe?
This is a difficult question to answer exactly, because the cost depends on a few different factors. Broadly speaking, it costs about $15,350 for a 5-kW system and $30,700 for a 10-kW system after the ITC is applied. You can expect to pay more if you want additional solar equipment or higher quality panels, or if you have higher-than-average energy needs. On the other hand, you can spend less if you want a smaller solar panel system or less efficient solar panels.
Is cost the most important consideration when buying solar panels?
Cost is certainly one of the most important factors you should consider when buying solar panels, but other important factors include efficiency, durability, and quality.
Does Tempe have a net metering program?
Each state has some form of net metering programs except Tennessee, South Dakota and Alabama currently. Some states let you sell power back to the grid, but others just give you credit toward your future energy bills.
How long do solar panels last in Tempe?
On average, solar panels can last about 25 to 30 years. Some even last up to 50 years, but their efficiency goes down by about 0.8% each year. You can choose to replace them sooner if you want to maintain a larger amount of energy production.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.
Company research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.