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Solar analysis: Phoenix, AZ

Phoenix homeowners have access to premium solar resources: 6.55 peak sun hours per day. See how this translates to real dollar savings below. Your area receives an average of 6.55 peak sun hours per day.

Solar Authority Score™
76 Good

Nearby Areas

Phoenix 85023 Phoenix 85024 Phoenix 85053 Glendale 85310 Phoenix 85022 Glendale 85308
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Solar Coverage Map: Phoenix, AZ

6 nearby locations
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Annual Electricity Offset

$1,306 /yr
High ROI Expected
Investment Grade: A+

Verified Solar Potential

Production
8,827 kWh per year (Est.)

Payback Period

9.5 Years

Time until system pays for itself

25-Year Lifetime Savings

$20,303

Estimated net profit after system costs

Fed. Tax Credit (30%)

$5,296
Money back in pocket

Available Incentives & Rebates

Residents of Phoenix may qualify for 5 active programs.

Federal Programs (Apply to Everyone)

Warning: 2026 Cliff
Inflation Reduction Act (Sec. 48E)
Benefit Value Pass-through Savings

If you lease your system (PPA), the solar company claims this credit and passes savings to you. Valid through 2032.

Warning: 2026 Cliff
Federal Residential Clean Energy Credit (ITC)
Benefit Value 30% (Expiring 2025)

30% Tax Credit for systems installed by Dec 31, 2025. CRITICAL: For 2026, this credit is set to expire for homeowner-owned systems unless extended. Leases (Third-Party) still qualify under Sec. 48E.

AZ State Incentives

5.6% Savings
Solar Equipment Sales Tax Exemption

100% exemption on sales tax for the solar device.

$1,000 Credit
Residential Solar Energy Credit

25% of the cost of the solar system, capped at $1,000.

100% Exemption
Energy Equipment Property Tax Exemption

100% of the added value of the solar system is exempt from property tax.

Efficiency

Code: 85027
EXCELLENT Score

6.55 Peak Sun Hours / day

Live Solar Forecast

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Production Efficiency --%

Fetching satellite data for Phoenix...

Peak Sun Hours Comparison

Excellent
Bar chart comparing Phoenix's 6.55 peak sun hours to the national average of 4.5 hours Phoenix National Avg State Avg 6.55 hrs 4.50 hrs 6.49 hrs 0h 2h 4h 6h

Phoenix receives 46% more peak sunlight than the U.S. average, indicating excellent solar production potential.

Solar Physics Simulator

Sun path trajectory for Phoenix

-4.2° Max Elevation
Sun path diagram showing summer vs winter trajectory in Phoenix East South West Summer (June) -4.2° Altitude Winter (Dec) -30.2° Altitude

In Phoenix, the sun is 26.0° lower in the sky during winter.
💡 Tip: Panels positioned at a 30.3° tilt will capture maximum energy year-round.

Why Solar in Phoenix?

Homeowners in Phoenix are positioned to benefit from 6.55 peak sun hours of daily sunlight. This translates to approximately $1,306 in annual electricity savings. With 5.7+ peak sun hours, Arizona is built for solar. Solar offsets the majority of cooling costs

True Cost Calculator

Average System Cost $17,655
🇺🇸 Federal Tax Credit (30%)
- $5,296
🏛️ AZ Rebate
- $1,000
Your Net Cost
$11,358
Financial Showdown

If you had $25k... Stock Market vs. Solar

Comparing a 20-year investment in the S&P 500 versus purchasing a solar system in Phoenix.

S&P 500 (Historical 7%) $60,981 Net Profit
Taxable
Solar Energy System $33,605 Tax-Free Gain
Winner 👑
Savings: $35,105 + Property Value: $16,000

Solar Outperforms by -45%

Unlike stock market gains which are taxed at ~15-20%, the money you save on electricity is 100% tax-free. Plus, solar increases your home's resale value immediately.

A moderate installer base in Phoenix gives you options without overwhelming choice. Focus on companies with local track records.