Your Complete Guide to Going Solar in the Phoenix Valley

Going solar in the Phoenix Valley sounds simple until the quotes start rolling in. Different companies, different products, different financing pitches, and what seemed like a home upgrade starts feeling more complicated than it should.

This guide is for homeowners in Scottsdale, Tempe, and Paradise Valley: three communities where the solar economics are strong, the sun resource is excellent, and the specifics matter more than the sales pitch.

Why the sun resource makes these cities ideal for solar

Phoenix averages 6.5 peak sun hours per day, and Scottsdale, Tempe, and Paradise Valley sit right in the middle of that resource zone. The National Renewable Energy Laboratory consistently rates the Sonoran Desert as one of the highest solar resource areas in the country. If you are going to put panels on a roof, there are few better places to do it.

APS serves most homes in all three cities, which means the majority of homeowners here deal with the same rate structure: tiered pricing that climbs in summer, time of use charges, and rates that have gone up in recent years. APS residential rates run between $0.13 and $0.18 per kilowatt hour depending on the season and rate plan. Those numbers make the solar math work when a system is properly sized.

Scottsdale solar: what homeowners here need to know

Scottsdale has a mix of older homes in the central corridor and newer construction north of the 101, and the solar equation looks different depending on which you own.

Older homes in areas like Old Town and South Scottsdale often have higher baseline consumption because they predate modern insulation standards. More electricity to offset means more room for a solar system to do meaningful work. A properly sized system for a 2,200 square foot home built in the 1980s might run 8 to 10 kilowatts to cover 90 to 100 percent of annual usage.

North Scottsdale homes in newer developments like Desert Ridge and DC Ranch tend to be more energy efficient, but they also tend to run larger. Newer roof construction is generally easier for installation teams to work with. Permit timelines in Scottsdale typically run two to four weeks for residential solar.

Paradise Valley, which sits adjacent to Scottsdale and is also served by APS, has some of the largest homes in the Phoenix Valley. Panel counts run higher, system costs follow, and the savings accumulate faster. A 1,800 square foot Tempe home and a 5,000 square foot Paradise Valley estate are very different solar projects with very different financial profiles.

Tempe solar: the case for going solar in a dense urban market

Tempe is one of the more mature solar markets in the Valley, which means installer competition is strong and homeowners generally have more leverage when comparing quotes.

SRP serves parts of Tempe, particularly near the 202 and around the university district. SRP customers work with a different rate structure than APS customers. SRP moved away from traditional net metering in 2015 and places solar homeowners on its Customer Generation rate plan, which includes a demand charge component. Solar still makes financial sense for SRP customers in Tempe, but system sizing and usage habits matter more under that structure.

For APS customers in Tempe, the dynamics are more direct. Exported solar earns a credit at APS export rates (roughly $0.028 to $0.075 per kilowatt hour), and you draw at retail rates when the grid covers gaps. Sizing a system to offset close to 100 percent of annual consumption produces the best outcome. For a deeper look at how this credit structure works, read how net metering works in Arizona and how APS and SRP handle exported energy differently.

What solar actually costs and what you will save

This is where a lot of conversations go sideways. Companies quote system prices without connecting them to your actual consumption.

A realistic example: a Scottsdale APS customer in a 2,500 square foot home with summer electric bills around $350 per month consumes roughly 18,000 to 20,000 kilowatt hours annually. A system sized for that home runs 10 to 12 kilowatts. At current APS rates, that household spends about $2,000 to $2,500 per year on electricity. A properly sized solar system offsets most of that.

The solar payback period in Arizona depends on what you paid for the system and your consumption before solar. For homeowners who buy outright, Phoenix Valley payback periods typically run six to nine years. Quality residential solar installations in the Phoenix Valley run about $2.50 to $3.50 per watt installed. A 10 kilowatt system at $3.00 per watt comes to $30,000 before any discounts. The prepaid lease changes that equation considerably.

The prepaid solar lease and the 30 percent advantage

The prepaid solar lease is the financing option that makes the most sense for most homeowners in Scottsdale, Tempe, and Paradise Valley, and the reason is simpler than most sales pitches make it.

There is no loan. No monthly payment. No interest. You pay a discounted lump sum upfront, typically 30 percent less than what a purchased system would cost at retail, and in return the solar provider covers equipment, installation, monitoring, and maintenance for the lease term. The power your roof produces goes to your home. When APS rates go up, your fixed lease cost stays put.

For homeowners who do not want debt or are skeptical of long financing commitments, this structure is worth a serious look. Read how the prepaid solar lease works for a full breakdown of the structure, what is included, and how the math compares to buying outright or taking a loan.

How to find the best solar installer in Arizona

The worst way to go solar is to hire whoever shows up at your door first. The Phoenix Valley has no shortage of solar sales operations, and some of them prioritize moving product over building the right system for your home.

Working with a solar broker in Arizona changes that dynamic. A solar broker in Phoenix represents multiple installers and product lines rather than being committed to one company's equipment. The broker's job is to match your home, your consumption history, and your budget to the right combination. A quality 400-watt panel on a west facing Scottsdale roof performs very differently from a lower-grade panel in the same position, and the difference compounds over 25 years.

Phoenix Valley Solar works as a solar broker, so we do not push one product line or one installer. We look at your specific situation and bring options that actually fit. Use the solar calculator to get a rough sense of system size and realistic savings for your home. You can also contact us directly or learn more about how we work.

City-specific considerations before you sign

Scottsdale homeowners with HOA restrictions should confirm panel placement rules before signing anything. Under A.R.S. 33-1816, installing solar is a protected right for Arizona homeowners. HOAs cannot prohibit rooftop solar; they may set only reasonable placement or aesthetic conditions, and only so long as those conditions do not reduce the system's output or raise its cost. Knowing this before contracts are signed prevents permit delays.

Tempe homeowners near the Salt River or in certain flood zone areas occasionally run into roof-related complications that affect installation timelines. It does not come up often, but confirming your situation with an installer before the permit process starts is worth doing early.

Paradise Valley homeowners frequently deal with custom rooflines, tile roofs, or steep pitch angles that require more careful engineering. Installation takes longer and sometimes runs slightly higher in cost. Any experienced installation team handles this regularly, but it needs to be scoped correctly from the start.

Frequently asked questions about going solar in Scottsdale, Tempe, and Paradise Valley

Is solar worth it in Scottsdale, Arizona?

For most homeowners, yes. Scottsdale gets the same high solar resource as the rest of the Phoenix Valley, and APS rates make the math work. The key is working with someone who sizes the system for your actual consumption rather than for a sales metric.

What is the solar payback period in Arizona?

For homeowners who purchase outright, the typical payback period in the Phoenix Valley runs six to nine years. With a prepaid solar lease, the upfront cost is already 30 percent lower than retail, so the break-even point shifts favorably from the start.

Does solar work for SRP customers in Tempe?

Yes. SRP customers in Tempe can still benefit from solar, but the rate structure under SRP's Customer Generation plan is different from APS net metering. A solar broker with experience across both utilities can walk you through the numbers before you commit.

Do I need to own my home to go solar in Scottsdale or Tempe?

Yes. Solar panels attach to your property and tie to your electric account. The installation needs to be on a home you own.

How do I compare solar quotes in the Phoenix Valley?

Compare system size in kilowatts, projected annual production in kilowatt hours, equipment brands and warranty terms, and total cost per watt. Quality residential installations in the Phoenix Valley typically run $2.50 to $3.50 per watt. The prepaid lease option usually comes in well below that full retail range.