Best Solar Panel Installation Companies in Arizona

Arizona’s electricity bills are relatively cheap, so you’d be forgiven for thinking that an alternative to making them cheaper sounds ridiculous. But first, consider this important fact: sunlight is abundant in Arizona; in fact, there’s an average of almost 7 hours of peak daily sunlight in the state. So, do solar panels make sense for your home, and if so, what are their pros and cons in your day-to-day life?

Arizona residents are paid an average rate of less than 15 cents per kilowatt-hour for electricity in 2024, according to data from the US Energy Information Administration. Different federal and state incentives can help make solar energy an even cheaper alternative to utilities, though. The biggest federal incentive is a major tax credit included within the Inflation Reduction Act, providing a 30% rebate on clean energy additions to your household.

Arizona has a number of local incentives that help make solar panel installation an easier choice as well. A robust net metering policy makes it cheaper to own solar panel systems during periods of less sunlight, and the state has legislation exempting these additions to your house from contributing to property taxes.

Before deciding to switch to clean energy, you need to know what company to contract with for solar panel system installation. Here are CNET’s favorite national solar companies and some local solar installers to consider.

Best solar panel companies in Arizona 

Palmetto Solar

Best overall

Solar panels are typically low maintenance equipment, but they’re also unfamiliar. If you want to reap the benefits of solar but will have a bit more peace of mind if someone else is making sure it’s working, Palmetto might be a good fit for you. Just remember to add the cost of Palmetto’s monitoring service in to your payback period calculations.

EnergyPal

Most flexible

EnergyPal is more than just a middleman. It’ll handle your solar installation from beginning to end while also allowing you to benefit from its proprietary engine and competitive bidding process. The company offers a range of hardware for panels, batteries and inverters, has plentiful financing options and offers responsive customer service support.

Elevation

Whole home approach

Elevation’s focus on your home’s energy efficiency isn’t the norm in the industry. If you’re planning on addressing energy efficiency first, working with Elevation allows you to keep the whole process with one company. Elevation’s solar equipment comes from well-established and well-regarded companies. Elevation’s warranties on workmanship and weatherization could be a bit longer.

Tesla Solar

Most affordable

Tesla’s solar branch seems to be the least loved of Elon Musk’s ventures. Even Tesla’s Solar Roof seems to get more love.

If price is the thing you won’t budge on, consider Tesla. By all accounts, Tesla installs quality panels and makes the closest thing there is to a household name in solar storage: the Powerwall.

Where you might miss out is customer service. Discussion online seems to suggest Tesla’s service is a bit of a gamble.

Momentum Solar

All in-house installers

Momentum installs in 11 states without using subcontractors. While using in-house installers doesn’t guarantee a better experience, it does suggest you’re likely to get a more uniform experience from Momentum. The fact that Momentum backs its installations with a 25-year workmanship warranty hints at a strong belief in its crews’ ability. If Momentum is part of your search, consider the warranties against leaks that other companies offer. Momentum’s is five years, which isn’t the best.

Local Arizona solar panel installation companies

How to determine which solar company in Arizona is best for me

The best installer for your home is someone who has experience working with the type of solar project that you’re looking for. Make sure your installer has experience working on the type of roof that your home has, and the type of solar system you want installed, such as grid-tied or off-grid.

“As a homeowner, you also want to look for an installer that has North American Board of Certified Energy Practitioners certifications and the right licensing and bonding for their work,” said Ben Delman, a communications director with Solar United Neighbors, a clean energy nonprofit.

Reading online reviews can also help you get a better picture of an installer’s reputation. A few places to start your search for solar company reviews are Google, Yelp and Angie’s List. Delman recommends looking for solar companies that have at least 20 to 30 reviews. If you know someone who has solar installed on their home, ask them for installer recommendations, too.

Aside from certifications and reviews, there are some other things to look for in a solar company. A good installer, Delman said, will be able to:

• Provide you with good word-of-mouth references
• Clearly explain the project schedule and deadlines
• Define technical terms in an clear and easy-to-understand manner
  
• Be transparent about pricing and how financing works for your system 
  
• Know the local permit requirements and the process for interconnection with the local utility company
  
• Understand and have experience with homeowners association restrictions and help you navigate through that process
  

A reputable installer should also be able to answer any questions you have, no matter how difficult your questions are. Don’t be afraid to ask for clarification on any project, system and pricing details. To get the best price possible, make sure to shop around for multiple quotes. Delman recommends comparing at least three quotes before picking a solar installer. 

Cost of solar panels in Arizona 

Here’s a look at the average cash price for a typical solar panel system in Arizona before factoring in tax credits incentives, according to data from FindEnergy.com.

The following infographic visualizes the average total price, cost per watt and system size for solar panel systems in the United States, according to data from FindEnergy.com. The prices shown do not represent changes from tax credits or state solar incentives. If FindEnergy doesn’t have solar data for a particular state, it appears grayed out on the map.

Arizona solar panel incentives or rebates

While solar panels in Arizona can save you money on your monthly electricity bills, the upfront costs can be a deterrent. Thankfully, there are federal and state incentives to reduce the overall cost. 

The federal government offers the Residential Clean Energy Credit (formerly known as the Investment Tax Credit) as part of the Inflation Reduction Act. This tax credit provides 30% of the total cost of a solar panel system as a credit on your federal income taxes. 

The state of Arizona has additional state and local solar incentives. Find the list based on your ZIP code on the Database of State Incentives for Renewable and Efficiency. Here are a few to note:

How solar-friendly is your state?

CNET recently ranked states based on their residential solar policies: the laws and regulations affecting consumer-level solar panel installation and adoption. These policies play a major role in determining how accessible and affordable a solar panel system is to the average resident. 

Each state was evaluated through a methodology and scored based on eight categories. The final score was converted to a letter grade. 

Here’s how your state scored on CNET’s solar policy test.

Arizona

Grade: D

Incentives available:

• State tax credit worth 25% of the cost of your solar system, up to $1,000
• State-governed net billing — solar buyback at the wholesale rate
• Solar panel systems fully exempt from property and sales taxes
  
• Low-income and community solar programs (local or utility-administered)

Strongest scoring categories:

Solar panel systems are fully exempt from both property and sales taxes in Arizona. While net billing gives you crummy energy buy back rates, it’s still better than nothing.

Categories to improve:

The net billing policy and the low-income and community solar programs only being offered at a local-level rather than across the state are both half measures in their respective categories.

Solar financing options in Arizona

There are several ways to pay for solar panels in Arizona, including cash, power purchase agreements, solar loans or leases. Each option has its advantages and disadvantages. Explore the payment options to determine what works best for you.

• Cash: No interest or loan fees, but greater upfront costs. You would be eligible to apply for the Residential Clean Energy Credit.
• Personal loan: You can also borrow the money through a personal loan. The main difference between a personal loan and a home equity loan is that a personal loan is typically unsecured. That means your house isn’t at risk. The downside is they tend to have shorter terms and higher interest rates than home equity products.
• Home equity: You don’t have to use a loan from your solar company. Financial institutions offer home equity loans and lines of credit (or HELOCs) that are commonly used for home improvement projects. These loans can be used for basically any purpose, and they may be a good fit for your solar project. Shop around and make sure you’re getting the best deal.
• Power purchase agreement: Solar company owns and provides maintenance on the solar panels. You only pay for the energy used. Ineligible for solar tax credits and incentives.
• Solar lease: Pay a fixed monthly price, but the company owns the panels. Ineligible for solar tax credits and incentives.
• Solar loan: Easy to apply, not as expensive upfront, but can result in high-interest fees.

Paying with cash or solar loans provides a larger return on your investment because you pay upfront and can claim tax credits. PPAs and solar leases are best for those who do not have the upfront capital, do not qualify for loans or rent their home. Remember that solar leases and PPAs do not qualify for tax credits and other green energy incentives.

Installation factors to keep in mind

Setting up solar panels can cost thousands of dollars. Before saying yes to solar, there are a few things to consider.

• Are you a homeowner? Homeowners can make solar decisions for their homes, but renters are typically not allowed to change the property without a landlord’s consent. There are still solar options for renters, such as community solar programs, where you subscribe to services like Arcadia and receive solar power from nearby panels.
  
• Can you cover solar panels under your current home insurance? Check with your homeowner’s insurance company to ensure your policy covers solar panels.
  
• Do you have an HOA or a neighborhood association? Arizona law states that an HOA may not prohibit the installation of solar panels. Check with your HOA or other neighborhood association before installation, as it may still have rules and regulations regarding solar devices. 
  
• What is the condition of your roof? Consider the age, size, slope and tree cover of your roof. Older roofs may need maintenance before installing solar, which can be an added cost. The Department of Energy says solar panels work best on roofs sloped between 15 and 40 degrees and facing the south. Solar installers will assess your roof before installation.
  
• Where is your home located? While solar panels still work in partially shaded areas, they benefit most from direct sunlight for at least four hours a day. If your solar system is shaded most of the day, it will not generate as much electricity for your home. 
  

Read more: Just looking for an emergency backup? Check out portable solar panels and solar generators. 

How we found the best solar companies 

Arizona solar power FAQs