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Solar Payback Years

All states

Solar payback in Arizona

A 7.7 kW home solar system in Arizona pays for itself in about 18.3 years at 2026 prices, with no federal tax credit. That ranks #36 of 51 states, where 1 is the fastest.

Installed price
$3.10/W
Arizona median, 2025
Solar output
1,755 kWh
per kW a year, Phoenix weather
Electricity rate
15.38¢/kWh
average home rate, EIA
Value of a solar kWh
9.6¢
net billing

Pays back in year 19

Cost up front
$23,870
Saved per year
$1,302
Ahead after 25 years
$8,671

Payback by quoted price and roof direction

Find your installer's price per watt (total price divided by system watts) to read your payback in Arizona. Nationally, cash buyers paid a median of $3.00 per watt in 2025 and loan buyers $4.50, because loan fees are often built into the price. East and west roofs make 14% and 14% less power than south here.

Price per watt7.7 kW costsSouth roofEast roofWest roof
$2.50 $19,250 14.8 years17.2 years17.2 years
$3.00 $23,100 17.7 years20.7 years20.7 years
$3.10 (Arizona median) $23,870 18.3 years21.3 years21.4 years
$4.00 $30,800 23.7 years27.5 years27.6 years
$4.50 $34,650 26.6 years31.0 years31.0 years

System size barely changes payback here: a bigger system costs more and saves more in about the same proportion.

Questions about solar in Arizona

How does Arizona pay for solar power I send to the grid?

Arizona utilities pay a Resource Comparison Proxy export rate, set each year by the Arizona Corporation Commission and cut by up to 10% a year. For APS customers applying in 2026 it is about 5.5 to 6.2 cents per kWh, locked for 10 years. We assume you use 40% of your solar power at home, which makes the average solar kWh worth 9.6¢. This summary comes from secondary sources, so confirm it with your utility. Source.

How much did the end of the federal tax credit change payback in Arizona?

With the 30% credit that ended in 2025, the same system would have paid back in about 12.8 years instead of 18.3. The credit ended for systems installed after December 31, 2025. Leased systems and power purchase agreements can still pass on a business credit, but then you do not own the panels.

Is 1,755 kWh per kW a lot?

The range across states runs from about 922 kWh in Alaska to about 1,779 in the Southwest. Sunshine matters less than people expect: the electricity rate and how your utility credits exports move payback more.

States near Arizona in the ranking