Pros and Cons of Solar Panels in Arizona: 2025 Update

Are you considering solar energy for your home in Phoenix? Now is the perfect time to harness the power of the sun and take advantage of significant savings through federal and state tax credits. Our team at Phoenix Valley Solar can help you navigate these incentives and maximize your savings. You can also use our Arizona Solar Calculator to get an estimate of your potential benefits.

Arizona is one of the best states in the country for solar energy — but even here, it’s important to weigh the benefits and drawbacks before making a decision. If you're considering home solar installation in Phoenix, understanding the pros and cons of solar panels in Arizona will help you make an informed choice and maximize your investment.

Here’s a detailed breakdown of the advantages and challenges you should know.

The Pros of Installing Solar Panels in Arizona

1. Unmatched Sunshine and Solar Production

Arizona enjoys over 300 sunny days per year, making it one of the best places in the world to generate solar energy. This high solar exposure means:

• Faster return on investment

• Higher monthly electricity savings

• More reliable year-round solar production

Your panels work harder here than almost anywhere else.

2. Significant Financial Incentives

Arizona homeowners benefit from major savings opportunities, including:

• 30% Federal Solar Investment Tax Credit (ITC)

• $1,000 Arizona Solar Tax Credit

• Sales tax exemptions for solar equipment

• Property tax exemptions on added home value

With these programs, the cost of solar panels in Phoenix becomes significantly more affordable — often reducing upfront costs by 30%–40% or more.

3. Higher Home Value

Multiple national studies show that residential solar panels in Phoenix boost property value by 4% or more on average. Solar-equipped homes often sell faster as well, making solar a strong real estate investment.

Importantly, in Arizona, solar increases home value without increasing property taxes — a major benefit.

4. Protection from Rising Utility Rates

Utility rates across Arizona — especially in APS and SRP territories — have consistently increased over the past decade. Home solar installation in Phoenix helps you:

• Lock in lower electricity costs

• Produce your own clean energy

• Reduce reliance on unpredictable utility companies

5. Sustainability and Energy Independence

Switching to solar reduces your home's carbon footprint while helping conserve Arizona’s precious natural resources, especially water. It’s not just a financial decision — it’s a step toward building a more sustainable, resilient future.

The Cons of Installing Solar Panels in Arizona

1. Upfront Investment

Even with incentives, solar panel installation requires a significant initial investment. While financing options can reduce upfront costs, homeowners should plan carefully to maximize returns.

2. Roof Suitability Matters

Not every roof is ideal for solar. Challenges include:

• Heavy shading from trees or neighboring structures

• North-facing roofs (less sun exposure)

• Older roofs that may need replacement before installation

At Phoenix Valley Solar, we evaluate every roof carefully to ensure optimal system design and performance.

3. Net Metering Changes

Arizona’s original full-retail net metering program has been phased out, replaced by net billing policies. Today’s homeowners still receive credits for extra solar energy sent back to the grid — but at slightly lower rates than retail electricity prices.

To maximize savings, many homeowners add solar battery storage to capture and use their own excess energy.

Final Verdict: Is Solar a Good Investment in Arizona?

With its unbeatable sunshine, strong financial incentives, and rising utility rates, solar in Arizona remains one of the best investments homeowners can make.

By partnering with an experienced, trusted installer, you can navigate the small challenges and enjoy decades of clean, affordable energy.

Why Choose Phoenix Valley Solar?

At Phoenix Valley Solar, we help homeowners across the Valley:

• Customize residential solar panel systems

• Maximize federal and state incentives

• Offer full solar plus battery system installations

• Provide expert, honest support every step of the way

We’re proud to be known as the best solar company in Phoenix, helping families save money and build energy independence.

Ready to Take Advantage of Arizona’s Sunshine?

Contact Phoenix Valley Solar today for a free consultation and find out how much you could save by installing solar panels built for Arizona living.

Are you considering solar energy for your home in Phoenix? Now is the perfect time to harness the power of the sun and take advantage of significant savings through federal and state tax credits. Our team at Phoenix Valley Solar can help you navigate these incentives and maximize your savings. You can also use our Arizona Solar Calculator to get an estimate of your potential benefits.