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Solar panels in Phoenix, Arizona: output, savings and payback

Solar panels in Phoenix produce about 1,788 kWh a year for each kW installed, 18% more than the average of the 400 US cities in our data (1,517 kWh). Among the 15 Arizona cities we cover, it ranks 9th of 15 for solar output, against an average there of 1,802 kWh.

Arizona’s average residential electricity price for January to August 2026 was 15.36¢ per kWh, 2.83¢ below the US average of 18.19¢, according to the Energy Information Administration.

For a home using the US average of 899 kWh a month, a 6.0 kW system would cover a year’s use and save about $1,657 in its first year, or $56,491 over 25 years. With the average sunshine of the 400 US cities in our data, the same home would need a 7.1 kW system. Because Phoenix gets more sun, it needs 15% less capacity to cover the same use, so at any price per watt the system costs 15% less and pays for itself sooner.

There is no verified US installed-price figure yet, so add the price per watt from your installer’s quote in the calculator below to see the payback period for Phoenix.

A typical home in Phoenix

System size
6.0 kW
Sized to cover 10,788 kWh a year
First-year generation
10,788 kWh
First-year savings
$1,657
At 15.36¢ per kWh
Savings over 25 years
$56,491
Prices rising 3% a year
Payback
Needs your quote
No verified US installed price yet: enter yours below

Assumes all the electricity the panels make is used at home, up to the home’s yearly use, and that panel output falls 0.5% a year. Power sent to the grid is counted at zero.

How Phoenix compares

Phoenix compared with the Arizona and US averages
PhoenixArizona averageUS average
Solar output, kWh per kW a year1,7881,8021,517
Electricity price per kWh15.36¢15.36¢18.19¢
System size for a typical home6.0 kW6.0 kW7.1 kW
First-year savings$1,657$1,657$1,962

Averages are of the 15 places in Arizona and the 400 US cities in our data, unweighted. The US column uses the US average price as well as the average sunshine.

Your home in Phoenix

All amounts in US dollars.

Your home

Sets how much electricity each kW of panels makes in a year at your location.

kWh per month

Check your utility bill: most show monthly kWh. Average your last 12 months if you can.

cents per kWh

Starts at the Arizona residential average for January to August 2026. Your bill shows your own rate.

Solar system
kW

Leave blank to size the panels to cover your yearly use, or enter the size on your quote.

Installed price
$per W

Enter the price from your installer quote to see cost, payback and return. Your quote divided by the system size in watts (for example, a 6 kW system is 6,000 W).

Assumptions you can change
% per year

Starts at 0.5%, the median of nearly 2,000 reported rates in an NREL review.

% per year

A scenario, not a forecast. Try 0% and 5% to see how much it matters.

%

Share of the panels’ output your home uses as it is made. 100% assumes all of it offsets power you would otherwise buy, up to your annual use.

A battery only adds savings when you use less than 100% of your solar power directly. Lower “Used directly at home” under assumptions to model that.

Results

Payback period

Add your installer’s quoted price to see payback

First-year savings
$1,657
Savings over 25 years
$56,491
System size
6.0 kW
Sized to cover your yearly use
First-year generation
10,788 kWh
Cumulative savings over 25 yearsAdd your quoted price to compare against the cost.
Year-by-year table
Generation and savings for each of the 25 years
YearGeneration (kWh)Price per kWhSaved that yearSaved so far
110,788$0.154$1,657$1,657
210,734$0.158$1,698$3,355
310,680$0.163$1,740$5,096
410,627$0.168$1,784$6,879
510,574$0.173$1,828$8,707
610,521$0.178$1,873$10,581
710,468$0.183$1,920$12,501
810,416$0.189$1,968$14,468
910,364$0.195$2,017$16,485
1010,312$0.200$2,067$18,552
1110,261$0.206$2,118$20,670
1210,209$0.213$2,171$22,840
1310,158$0.219$2,225$25,065
1410,107$0.226$2,280$27,345
1510,057$0.232$2,337$29,681
1610,007$0.239$2,395$32,076
179,957$0.246$2,454$34,530
189,907$0.254$2,515$37,045
199,857$0.261$2,578$39,623
209,808$0.269$2,642$42,265
219,759$0.277$2,707$44,972
229,710$0.286$2,775$47,746
239,662$0.294$2,844$50,590
249,613$0.303$2,914$53,504
259,565$0.312$2,987$56,491

Savings count only electricity your home no longer buys. Power sent to the grid is valued at zero. Grid emissions data has not been verified yet, so no carbon figure is shown. See the methodology for every formula and source.

Nearby cities

CityDistancekWh per kW a yearPrice per kWhSystem sizeFirst-year savings
San Diego, California295 miles1,74232.58¢6.2 kW$3,515
Los Angeles, California364 miles1,70732.58¢6.3 kW$3,515
San Antonio, Texas847 miles1,51216.03¢7.1 kW$1,729
Houston, Texas1,015 miles1,42816.03¢7.6 kW$1,729
Chicago, Illinois1,445 miles1,36919.23¢7.9 kW$2,075

Solar panels in Phoenix: questions

How much electricity do solar panels produce in Phoenix, Arizona?
About 1,788 kWh a year for each kW of panels, for a roof-mounted, south-facing array at a 30° tilt with 14% system losses (PVWatts). A 6.0 kW system would make about 10,788 kWh in its first year. Shade, a different roof angle or an east or west-facing roof will change this.
How much could solar panels save in Phoenix, Arizona?
At Arizona’s average residential price of 15.36¢ per kWh, a 6.0 kW system sized for an average US home would save about $1,657 in its first year and $56,491 over 25 years. That assumes the home uses all the power the panels make, electricity prices rise 3% a year and panel output falls 0.5% a year. Power sent to the grid is counted at zero. At the US average price of 18.19¢, the first-year figure would be $1,962.
How long do solar panels take to pay back in Phoenix, Arizona?
It depends on the installed price on your quote, which varies by installer and system, and we do not have a verified US average to use. Enter your quote in the calculator on this page: Phoenix’s solar output and Arizona’s electricity price are already filled in. Every $0.10 per watt adds about $600 to the price of a 6.0 kW system.
What do homes in Phoenix, Arizona pay for electricity?
Arizona’s average residential price for January to August 2026 was 15.36¢ per kWh, against 18.19¢ for the US as a whole (EIA Electric Power Monthly, Table 5.6.B). Your own rate depends on your utility and plan, so use the figure from your bill in the calculator if you can.
How does Phoenix compare with nearby cities?
Of the 5 nearest cities we cover, San Diego (295 miles away) gets the most sun at 1,742 kWh per kW, and Chicago (1,445 miles away) the least at 1,369 kWh. Phoenix gets 1,788 kWh, more than any of them. Within Arizona, it ranks 9th of the 15 cities we cover.
Where do these figures come from?
Solar output is from the PVWatts V8 tool for Phoenix’s coordinates in the Census Bureau Gazetteer, checked on 2026-11-10. The electricity price is the EIA residential average for Arizona for January to August 2026, and household use is the EIA average for US homes. Each figure is listed with its source link at the bottom of this page.

Sources for this page

  • Solar output for Phoenix: developer.nlr.gov (checked 2026-11-10)PVWatts V8.5.0 outputs.ac_annual for a 1 kW system. Weather data: 79240.csv, station at 33.56999969482422, -112.0999984741211 (940 m away).
  • Arizona electricity price: www.eia.gov (checked 2026-11-11)Arizona, residential sector, year-to-date through August 2026. Published as 15.36 cents per kilowatthour.
  • US average price: www.eia.gov (checked 2026-11-11)U.S. Total, residential sector, year-to-date through August 2026. Published as 18.19 cents per kilowatthour.
  • Typical household use: www.eia.gov (checked 2026-11-10)Average annual electricity sold to a U.S. residential utility customer in 2022: 10,791 kWh ("an average of about 899 kWh per month").
  • Panel output loss: docs.nlr.gov (checked 2026-11-10)Median of nearly 2,000 reported degradation rates: "a median value of 0.5%/year" (average 0.8%/year).
  • Location: www2.census.gov (checked 2026-11-10)Census Gazetteer INTPTLAT/INTPTLONG (internal point) for GEOID 0455000, "Phoenix city".

Methods and every other figure are on the methodology page.