Solar Panels in Tempe, Arizona

Q: How much do solar panels cost in Tempe, Arizona?

A typical 8 kW system in Tempe costs approximately $22,400 installed (2026 average: ~$2.80/W). The federal solar tax credit (Section 25D) expired December 31, 2025 and is no longer available for residential buyers. Your net cost is $22,344 after the Arizona state credit.

Q: Is solar worth it in Tempe without the federal tax credit?

Tempe produces 1697.2 kWh/kWp/year. An 8 kW system saves $2,119/year and pays back in 7.1 years — even without the expired federal credit. Solar is well worth it in Tempe.

Q: How long is the solar payback period in Tempe?

The payback period in Tempe is approximately 7.1 years, based on 1697.2 kWh/kWp annual yield (PVGIS v5.3) and a 15.61¢/kWh electricity rate (EIA data, updated April 11, 2026).

Tempe receives 1697.2 kWh per kWp of solar panels per year — 11.4% above the US national average of 1,550 kWh/kWp. At Arizona's electricity rate of 15.61¢/kWh, an 8 kW system saves roughly $2,119/year and pays back in 7.1 years.

Solar is well worth it in Tempe. Note: The 30% federal solar tax credit (Section 25D) expired December 31, 2025. The numbers below reflect today's actual costs.

Annual yield:1697.2 kWh/kWp

Electricity rate:15.61¢/kWh

Payback:7.1 yrs

Location:33.42°N

Tempe Solar at a Glance

Annual solar yield1697.2 kWh/kWp/yr

Optimal tilt angle25° south-facing

Avg. daily sun hours27.4 hrs/day

Electricity rate15.61¢ per kWh

8 kW system cost (2026)$22,400

Arizona state credit− $56

Your net cost$22,344

Annual savings$2,119/yr

Payback period7.1 years

Last updated: April 11, 2026 · Sources: PVGIS v5.3, EIA

How Much Solar Power Does Tempe Get Each Month?

Monthly solar yield (kWh per kWp installed) based on PVGIS satellite data for 33.42°N, 111.94°W.

122

124

156

165

169

157

146

145

138

142

123

111

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Best month: 168.6 kWh/kWp (May)Worst month: 111 kWh/kWp (Dec)Monthly avg: 141 kWh/kWp

Live Solar Forecast for Tempe

Real-time generation estimate for an 8 kW system based on today's weather forecast. Data: forecast.solar.

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Is a Home Battery Worth It in Tempe?

A battery stores excess midday solar for use at peak evening hours. At 15.61¢/kWh in Tempe, here is the math for the two most popular options.

Tesla Powerwall 3

Capacity

13.5 kWh

Installed cost

$11,500

Annual savings

$615

Payback

18.7 yrs

10-year value: $6,150 · Based on 365 cycles/yr, 15.61¢/kWh, 80% usable capacity. Does not include backup value or utility TOU rate savings.

Generic LFP 10 kWh

Capacity

10 kWh

Installed cost

$8,000

Annual savings

$437

Payback

18.3 yrs

10-year value: $4,370 · Based on 350 cycles/yr, 15.61¢/kWh, 80% usable capacity. Does not include backup value or utility TOU rate savings.

Battery ROI improves significantly in states with Time-of-Use (TOU) rates where peak electricity can cost 2–3× the off-peak rate. California (PG&E, SCE, SDG&E), New York (ConEd), and Massachusetts (Eversource) have the strongest TOU incentives for battery storage.

What Are the 25-Year Solar Savings in Tempe?

Based on 1697.2 kWh/kWp/yr yield, 15.61¢/kWh electricity rate, and a 2026 system cost of $2.80/W. Federal tax credit expired Dec 31, 2025 — not included.

System cost

$22,400

Installed, 8 kW

State credit

−$56

Arizona only

Net investment

$22,344

Your actual cost

25-yr savings

$50,326

Est. lifetime benefit

Federal Solar Tax Credit Update: The 30% residential solar tax credit (Section 25D) expired on December 31, 2025 under the One Big Beautiful Bill. Cash and loan purchases no longer qualify for the federal credit. State and local incentives below may still apply — check with your installer.

What Solar Incentives Are Available in Tempe, Arizona?

The federal ITC expired in 2025. These state and utility incentives still apply in Arizona.

Arizona State Tax Credit

0% of cost back on your state income taxes.

Property Tax Exemption

Arizona exempts the solar-added home value from property taxes. A $22,400 system won't raise your tax bill.

Sales Tax Exemption

Solar equipment is sales-tax exempt in Arizona — saving you hundreds at purchase.

Net Metering

APS: net metering at retail rate for first 10 years, then wholesale. SRP: Customer Generation Credit (~2.8¢/kWh export).

Utility & Local Programs

25% state income tax credit (up to $1,000/year), APS/SRP utility rebates, sales tax exempt

See all Arizona incentives Solar learning guides

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Solar Panels in Tempe: Frequently Asked Questions

How much do solar panels cost in Tempe, Arizona in 2026?

In Tempe, a typical 8 kW solar system costs approximately $22,400 installed (at ~$2.80/W, the 2026 US average). The federal solar tax credit expired December 31, 2025, so that 30% rebate is no longer available for residential cash or loan purchases. Arizona's state tax credit saves an additional $56, bringing your net cost to $22,344. Prices vary by installer, panel brand, and roof complexity.

Is solar worth it in Tempe without the federal tax credit?

Tempe generates 1697.2 kWh per kWp annually — 11.4% above the US average. At Arizona's electricity rate of 15.61¢/kWh, an 8 kW system saves roughly $2,119/year and pays back in about 7.1 years — even without the expired federal credit. Solar is well worth it in Tempe.

How much electricity do solar panels produce in Tempe?

In Tempe, each kW of solar panels produces approximately 1697.2 kWh per year. An 8 kW system generates about 13,577.6 kWh annually — enough to cover the average Arizona household's electricity use. Peak production hits 168.6 kWh/kWp in May, with the lowest output of 111 kWh/kWp in Dec. Data source: PVGIS v5.3 satellite radiation model.

What solar incentives are available in Tempe, Arizona?

the expired federal tax credit (Section 25D) expired December 31, 2025 and is no longer available for residential buyers. Arizona still offers a state tax credit of 0% (up to $56). Arizona also exempts solar systems from property tax assessments. Sales tax on solar equipment is waived in Arizona. Net metering and local utility programs may provide additional savings.

How long is the solar payback period in Tempe?

In Tempe, the average payback period for an 8 kW solar system is approximately 7.1 years. This is based on 1697.2 kWh/kWp annual yield (PVGIS data), a 15.61¢/kWh electricity rate (EIA 2026 data), and an $22,400 installed cost. After payback, the system produces free electricity for 15–20 more years.

Environmental Impact & Home Value in Tempe

An 8 kW solar system in Tempe produces roughly 13,577.6 kWh/year. Here is what that means beyond your electricity bill.

🌿

CO₂ avoided per year

5.2 tonnes

5,241 kg · EPA grid avg 0.386 kg/kWh

🌳

Tree equivalent

240 trees

Trees needed to absorb same CO₂ annually

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Home value boost

+$1,546

Avg +6.9% (Lawrence Berkeley Lab / Zillow data)

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US homes powered

Avg US home uses 10,632 kWh/yr (EIA 2024)

How Many Solar Panels Do You Need in Tempe?

The right system size depends on your annual electricity usage and how much of your bill you want to offset. In Tempe, where annual solar yield is 1697.2 kWh per kWp, here is what different households typically need:

Annual usage	System size	Panels (400 W)	Est. cost	Annual savings
6,000 kWh Small home	3.6 kW	9 panels	$10,080	$937/yr
10,800 kWh Average home	6.4 kW	16 panels	$17,920	$1,686/yr
15,000 kWh Large home	8.9 kW	23 panels	$24,920	$2,342/yr
20,000 kWh Large + EV	11.8 kW	30 panels	$33,040	$3,122/yr

Costs based on $2.80/W installed (2026 US average). Panel count assumes 400 W modules. Savings based on current 15.61¢/kWh rate. State incentives not included — see above for Arizona credits.

TempeSolar Resources & 2026 Incentives

Key information for homeowners in Tempe going solar in 2026 — after the federal 30% tax credit expired December 31, 2025.

⚡ Federal Tax Credit Status (2026)

The 30% Section 25D residential solar credit expired December 31, 2025. An 8 kW system in Tempe costs $22,344 after a $56 Arizona state credit. The commercial Section 48 credit (for businesses, landlords) was not affected.

IRS Residential Clean Energy Credit →

🔌 Net Metering in Arizona

APS: net metering at retail rate for first 10 years, then wholesale. SRP: Customer Generation Credit (~2.8¢/kWh export).

DSIRE — Arizona Incentive Database →

🏛️ Arizona State Incentives

25% state income tax credit (up to $1,000/year), APS/SRP utility rebates, sales tax exempt

✓ Property tax exempt✓ Sales tax exempt

📚 Authoritative Sources