Scottsdale, AZ Solar Panels
In This Guide
- 01 Solar Energy in Scottsdale
- 02 Solar Cost Calculator
- 03 Scottsdale Reviews
- 04 Key Takeaways
- 05 Scottsdale Electricity Prices
- 06 Arizona Solar Incentives
- 07 Scottsdale Solar Production
- 08 Solar Installations in Scottsdale
- 09 Choosing an Installer
- 10 Leasing Solar Panels
- 11 Frequently Asked Questions
Solar Power in Scottsdale
Scottsdale’s abundant sunshine can make solar panel installation appealing, but a successful system depends on more than clear skies. Roof orientation, shade, and high summer cooling use all affect how solar may work for your home.
Explore our guide to home solar panels to understand the basics, then learn what to consider when planning solar installation in Scottsdale.
How Much Do Solar Panels Cost in Scottsdale, AZ?
Explore estimated solar installation costs in Scottsdale using Palmetto’s database of completed Arizona installations. Local data from Scottsdale and nearby communities, including Paradise Valley, Fountain Hills, and Tempe, helps make your estimate more relevant to the area—so you can better understand what solar may cost for your home.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Scottsdale’s sunshine can support strong solar production, but roof direction, shade, summer cooling use, and seasonal weather affect what your system can deliver.
- A typical 8.2-kW system is estimated at $22,405, with projected 25-year savings around $62,945; actual costs and savings vary by home and utility.
- Solar incentives and export credits depend on your utility; APS and SRP have different plans, so check current rates and program rules before installation.
Scottsdale Electricity Prices
Electricity rates are one factor Scottsdale households may consider when weighing solar; recent Arizona data show how prices have changed.
Arizona’s average electricity price rose from 12.5 cents per kWh in 2021 to 14.9 cents in 2024. It remained below the national average in each year shown.
For Scottsdale homes, solar panels can generate electricity on-site, potentially reducing how much power a household buys from its utility. The effect depends on system size, usage, and utility rules.
Over time, using solar to meet part of a home’s electricity needs may provide some insulation from rate changes. Actual bill impacts vary, and grid power may still be needed, especially after sunset.
Price of Energy: Arizona vs National Average
Scottsdale Area Utility Providers
Scottsdale homes may receive electricity from APS or SRP. In the latest available comparison, 2023, APS averaged 15.3¢ per kWh and SRP 12.5¢ per kWh.
Arizona’s 2023 average was 14.0¢ per kWh, while the national average was 16.0¢. APS was above the state average but below the national average; SRP was below both.
Electricity costs therefore vary by utility in Scottsdale. Solar can help households produce some electricity at home and manage how much they draw from the grid, though results depend on household use and system performance.
Scottsdale Utilities Electricity Rates
Arizona Solar Incentives
Scottsdale residents may be able to offset solar installation costs through Arizona and local incentives. Review the solar incentives in Arizona below.
Options include a state income-tax credit, solar-equipment sales-tax treatment, and a property-tax valuation exclusion. Export credits vary by utility and tariff; APS and TEP customers may also qualify for seasonal battery rewards.
State and local programs remain available. LightReach solar leasing simplifies incentives: Palmetto handles the commercial ITC and passes savings through lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Arizona Credit for Solar Energy Devices (Form 310) | State Income-Tax Credit | Arizona residents may claim a credit of 25% of qualifying solar-device costs, up to $1,000 per residence, with unused credit generally carried forward for up to five consecutive years. | Learn More |
| Arizona Solar-Equipment Transaction Privilege Tax (TPT) Treatment | Sales-Tax Exemption / Deduction | The qualifying retail sale of a solar energy device may be excluded from the applicable Arizona TPT tax base when sold through a properly registered solar-energy retailer. | Learn More |
| Arizona Property Valuation Treatment for On-Site Solar | Property-Tax Valuation Exclusion | Qualifying on-site solar energy equipment is treated as adding no value to the property for appraisal purposes, reducing the risk that the solar system increases assessed property value. | Learn More |
| Arizona Solar Export Compensation and Interconnection Tariffs | Net Billing / Net Metering / Export Compensation | Arizona has no single statewide solar export rate; bill credits and compensation depend on the customer’s utility, rate plan, tariff, and sometimes interconnection history. | Learn More |
| APS Storage Rewards Pilot | Battery Demand-Response Reward | Eligible APS residential customers can earn $110 per average kilowatt of battery contribution for the May–October season through performance-based conservation-event rewards. | Learn More |
An Arizona resident who is not claimed as another taxpayer’s dependent may claim a credit equal to 25% of the cost of a qualifying solar energy device installed at the resident’s Arizona home, up to a maximum of $1,000. The $1,000 limit is cumulative for the same residence, rather than a new limit for each system.
Claim the credit using Arizona Form 310 and Form 301. Unused credit may generally be carried forward for up to five consecutive tax years. A solar system that includes storage may qualify, but a stand-alone battery is not clearly covered; check the current instructions or consult ADOR or a tax professional. See ADOR Form 310 information and A.R.S. § 43-1083.
Arizona law provides favorable TPT treatment for qualifying retail sales of solar energy devices. The practical benefit is potential avoidance of applicable transaction privilege tax on the qualifying equipment purchase; the exact tax treatment depends on the transaction and the retailer’s status.
This is not a blanket exemption for every installation, labor, or contracting charge. Confirm that the seller is registered as required and ask how the exemption is reflected on your invoice. See A.R.S. § 42-5061 and ADOR contracting guidance.
Arizona law provides that qualifying on-site solar equipment is considered to add no value to the property for appraisal purposes. This can help prevent a qualifying solar installation from increasing the property’s assessed value and resulting property-tax valuation.
This is a valuation rule, not a cash rebate or a direct reduction in the home’s existing assessed value. The law covers specified solar devices and grid-tied photovoltaic systems primarily used to produce energy for on-site consumption; do not assume a stand-alone battery receives the same treatment. See A.R.S. § 42-11054.
Arizona homeowners should check their utility’s current tariff before sizing a solar system: export compensation is utility- and plan-specific, and new customers generally should not assume they will receive retail-rate net metering. APS describes Resource Comparison Proxy (RCP) net-billing arrangements that credit excess generation at an applicable purchase rate; qualifying legacy customers may have different terms. SRP uses its own price plans, which can include within-billing-cycle netting or fixed export credits.
SRP also has a separate Renewable Export Program for qualifying facilities of 100 kW AC or less. It may offer a capacity credit for customers who enroll under the program and commit to delivering capacity during an eligible period; it is not an automatic credit for every solar customer. Check the current terms, rates, interconnection requirements, and enrollment status directly with your utility: APS renewable riders, SRP solar plan comparison, and SRP Renewable Export Program.
APS states that participants can earn $110 per average kW their battery provides during the season. For example, an average contribution of 3 kW would earn $330 for the season. This is a performance-based reward, not an upfront battery-purchase rebate.
Applicants must be APS residential rate-plan customers, have an APS-approved battery and permission to operate, and meet the program’s equipment and enrollment requirements. Events take place during the May–October season, and customers may opt out of individual events. Batteries without solar may qualify. Confirm current equipment eligibility and program terms with APS Storage Rewards.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Arizona incentives.
Get a Free QuoteScottsdale Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Scottsdale’s abundant sunshine supports strong solar production, though intense summer heat, monsoon clouds, and seasonal sun angles affect monthly output. Like other climates, the right system can perform well.
Solar Production in Scottsdale by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Panel Systems in Scottsdale
We’ve organized solar installation data from across the country to create this map of Scottsdale. Explore the hexagons to see how many homes have gone solar in each area and discover the neighborhoods and communities where your neighbors have made the switch.
How to Choose a Solar Installer in Scottsdale
Verify the license
A contractor paid to install residential solar generally needs an appropriate Arizona contractor license. Solar-device installers must meet the qualifications and hold the license classification that fits the work being done. Ask for the contractor’s Arizona license number and the name it is held under, then confirm the license and relevant classification directly with the Arizona Registrar of Contractors (AZ ROC) before signing. The governing licensing law is Arizona Revised Statutes § 44-1762. A salesperson’s assurance is not a substitute for checking the contractor responsible for the installation.
Look for certified installers
Ask who will design and install the system, and whether those individuals hold a NABCEP certification. A credential can help you assess an individual installer’s qualifications, but it does not replace the required Arizona contractor license. You can also ask whether the installer has certifications from the manufacturers whose panels or inverters are in the proposal. Clarify which people hold each credential, and treat certifications as one comparison point—not a guarantee of workmanship or system performance.
Compare quotes the same way
Request written proposals with matching assumptions. Compare:
- System size in kilowatts (kW) and total price; calculate or request the price per watt.
- Panel and inverter brands and models, plus the estimated annual production in kilowatt-hours (kWh/year) and the assumptions behind it.
- Separate warranty terms for panel product and performance, inverter, workmanship, and roof penetrations. Ask who handles claims.
- Who obtains permits and manages the utility interconnection process, and what is excluded from the quoted scope.
- Total cost if purchasing, or monthly payment if financing or leasing, including any payment escalator and how it changes over time.
Compare the same system size and equipment where possible; a lower headline price may reflect a different scope, production estimate, or payment structure.
Permits, interconnection and your HOA
Building and electrical permits and inspections are handled by the local authority having jurisdiction; the correct office and requirements depend on the property address. The homeowner or installer applies to the serving utility for interconnection and an agreement. Depending on your address, the utility may be Arizona Public Service Co, Salt River Project, Tucson Electric Power Co, or UNS Electric, Inc. Municipal electric systems may have different requirements. Ask who submits the application and confirm that the required agreement is in place before the system is connected.
Arizona law generally prevents planned-community associations from prohibiting rooftop solar, while allowing reasonable placement rules that do not prevent installation or impair function, use, cost, or efficiency. There is an exception for certain older covenants, and this law does not create an easement over a neighbor’s property. Ask the installer how it will address your association’s review process.
Red flags
- Pressure to sign the same day or claims that a special offer will disappear immediately.
- A contractor who cannot show an appropriate Arizona license. Out-of-state crews are not automatically disqualified, but confirm the licensed contractor responsible for the work.
- Vague production estimates, unusually large upfront deposits, or unclear warranty and cancellation terms.
- Promises that homeowners can claim federal tax credits for purchases made in 2026; homeowner credits ended December 31, 2025.
Leasing Solar Panels
For Scottsdale homes served by Arizona Public Service Electric (APS) or Salt River Project (SRP), Palmetto lists a solar lease as available. A Power Purchase Agreement (PPA) is not listed for either utility; options depend on your address and utility.
With a lease, you pay a set monthly amount. A PPA instead charges for each kilowatt-hour the system produces, so payments can vary by season. Learn more about buying or leasing solar.
Leasing can avoid the large upfront cash purchase and shift system maintenance to the provider. With a cash purchase, you own the equipment and are generally responsible for arranging and paying for repairs. See how Palmetto LightReach works, and review the agreement for its specific terms.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Explore LightReach LeasingFrequently Asked Questions
Scottsdale does not have one citywide net-metering rate. Most homes are served by APS or SRP, which use net billing: solar electricity sent to the grid earns bill credits, generally at less than the retail price of electricity.
APS sets an export-credit rate when a system connects and requires solar customers to use a time-of-use plan. SRP credit values vary by plan and season, and unused credits can carry forward. Check your utility and current plan for exact terms.
Yes, an owned solar panel system may increase a Scottsdale home’s resale value. Zillow’s study found homes with solar sold for about 4.1% more on average. This national finding is not a guaranteed premium for every home; roof condition, system performance, utility plan, and buyer demand matter.
This potential value applies to purchased systems, not leased or third-party-owned (TPO) systems. With a lease, a buyer may need to assume the agreement, which can affect resale differently. Arizona’s property-tax valuation exclusion for qualifying solar equipment is separate from market value.
Scottsdale homeowners can go solar with a LightReach lease for a low fixed monthly payment and no upfront cost. The calculator above estimates $105/month for a typical 2,000–3,000-square-foot home, with examples ranging from $77 to $142/month by home size.
For a cash purchase, the calculator estimates $22,405 after the Arizona state incentive for a typical 8.2-kW system. The federal 30% tax credit is no longer available for residential cash purchases following the 2025 federal law change. See the calculator above for estimates by home size.
With Palmetto’s LightReach lease, Palmetto owns and installs the solar system, and you pay a set monthly amount. There is no upfront cost; one payment covers the panels, installation, monitoring, maintenance, and protection program, including a 90% Production Guarantee.
For a typical 8.20-kW system in Scottsdale, the estimated lease payment is about $105 per month, based on Arizona’s 1,624 kWh/kW annual production ratio and a $0.095/kWh rate. Payments are typically below the current electricity bill, so savings can begin once the system is operating.
Yes. Solar panels work well in Scottsdale, which averages about 6.5 peak sun hours per day. Panels also produce electricity on cloudy days, though reduced sunlight means less output. Summer heat can slightly lower panel efficiency, and monsoon clouds may temporarily reduce production.
Output changes by season: the article’s estimate for a 10-kW system is about 50.8 kWh per day in July and 34.2 kWh in December. Roof direction, shade, weather, and daylight hours affect a home’s actual production.
In Scottsdale, a typical 8.2-kW home solar system could produce about 14,400 kWh per year, based on the article’s NREL PVWatts estimate of 17,604 kWh annually for a 10-kW system.
Output is higher in sunnier months and lower in winter. Roof direction and tilt, shade, monsoon clouds, and summer heat can all change a system’s actual production.
Solar can be worth it financially in Scottsdale when the system’s cost is lower than the electricity costs it offsets. With a LightReach lease, there is no upfront investment, and the monthly lease payment is typically less than the homeowner’s current electricity bill, so savings can begin as soon as the system is active.
Your actual savings depend on your energy use, roof, and APS or SRP rates and export-credit rules. You may still have a utility bill, so compare the lease terms and estimated total costs for your home.