Solar Energy in Phoenix, Arizona

Above Average Solar Resource #1 nationally · #1 in Arizona Pop. 1,608,139

Phoenix, Arizona receives 5.78 kWh/m²/day of solar irradiance and 6.7 peak sun hours daily, representing above-average solar resources . A typical 5 kW residential solar system in Phoenix produces approximately 9,753 kWh annually, potentially saving homeowners $1,219 per year on electricity bills. After the 30% federal Investment Tax Credit, a 5 kW system has an estimated payback period of 8.6 years, leaving roughly 16 years of profitable operation within a standard 25-year warranty. For maximum annual output in Phoenix, panels should be tilted at approximately 33° and oriented true south (180° azimuth).

Solar Resource Summary

5.78
kWh/m²/day
GHI Annual
6.7
hours/day
Peak Sun Hours
7.35
kWh/m²/day
DNI Annual
GHI vs. US national average (4.5 kWh/m²/day) Above Average
0 7.5 kWh/m²/day

Monthly Solar Data

Month JanFebMarAprMayJunJulAugSepOctNovDec Annual
GHI (kWh/m²/d) 3.46 4.31 5.76 7.16 7.96 8.31 7.49 6.81 6.12 4.94 3.8 3.18 5.78
DNI (kWh/m²/d) 6.24 6.46 7.21 8.23 8.53 9.19 7.81 7.22 7.51 7.09 6.64 6.08 7.35
Source: NREL. Monthly averages in kWh/m²/day and °C.

Solar Production Estimates for Phoenix

5 kW Residential
Typical home system
Residential
9,753 kWh/yr
813 kWh/month avg
≈ $1,219/year savings
10 kW Residential
Large home system
Residential
19,506 kWh/yr
1,626 kWh/month avg
≈ $2,438/year savings
50 kW Commercial
Small commercial
Commercial
97,528 kWh/yr
8,127 kWh/month avg
100 kW Commercial
Medium commercial
Commercial
195,056 kWh/yr
16,255 kWh/month avg

Production estimates based on NREL solar resource data, 33° tilt, south-facing orientation, and 80% performance ratio.

Local Solar Conditions in Phoenix

Phoenix shows significant seasonal variation in solar output, with peak summer months receiving 8.3 kWh/m²/day compared to 3.2 kWh/m²/day in winter — a 2.6x difference. Battery storage or net metering is particularly valuable here.

Best Tilt Angle
33° (latitude-optimized)
Best Azimuth
180° (true south)
Coordinates
33.4484°N, -112.074°

Financial Overview — Solar in Phoenix

Solar is a sound investment in Phoenix. A 8.6-year payback period is in line with the national average. With electricity rates likely to increase over time, actual payback may be shorter. Estimated annual savings from a 5 kW system: $1,219/year.

Avg. Electricity Rate
$0.125/kWh (AZ avg)
Est. Annual Savings (5 kW)
$1,219/year
Est. Payback Period
8.6 years (after 30% ITC)
Federal ITC
30% of system cost
Net Metering
Available
Financial estimates assume a 5 kW system at $3,000/W installed ($15,000 pre-ITC, $10,500 after 30% credit). Actual costs vary by installer and equipment. Consult a local solar installer for firm quotes.

Solar FAQ — Phoenix, Arizona

In Phoenix, Arizona, a 5 kW residential solar system produces approximately 9,753 kWh of electricity per year. A 10 kW system produces about 19,506 kWh annually. These estimates use 5.8 kWh/m²/day average solar irradiance and an 80% system performance ratio, accounting for real-world losses from wiring, inverter efficiency, and temperature. Actual output will vary based on your specific roof orientation, shading, and equipment.

Phoenix receives an average Global Horizontal Irradiance (GHI) of 5.78 kWh/m²/day. This is 1.28 kWh/m²/day above the US national average of 4.5 kWh/m²/day, placing Phoenix above the national average. GHI measures total solar energy incident on a horizontal surface and is the primary indicator of a location's solar resource quality.

Phoenix, Arizona receives an average of 6.7 peak sun hours per day. Peak sun hours represent the equivalent number of hours when solar irradiance equals 1,000 W/m² — the standard condition used to rate solar panel output. This means a 1 kW solar panel array in Phoenix produces 6.7 kWh on a typical day. Seasonal variation is significant: summer months see peak sun hours 40–60% higher than winter months in most US locations.

Phoenix is a above average location for solar panels, with 5.78 kWh/m²/day solar irradiance — above the national average. It ranks #1 in Arizona and #1 nationally for solar potential. With an estimated payback period of 8.6 years, solar installations in Phoenix can be financially attractive, especially given Arizona's electricity rates.

The optimal tilt angle for solar panels in Phoenix is approximately 33°, which corresponds to the city's latitude. This angle maximizes annual energy production by ensuring panels receive the most direct sunlight averaged over the year. For maximum winter output, tilt panels at latitude + 15° (48°). For maximum summer output, use latitude − 15° (18°). Fixed south-facing panels at the latitude angle are the standard recommendation for residential systems in Phoenix.

A 5 kW solar system in Phoenix can save an estimated $1,219 per year on electricity bills, based on Phoenix's average electricity rate of $0.125/kWh. Over a 25-year system lifetime, that represents $30,475 in total savings before accounting for electricity rate increases. After the 30% federal Investment Tax Credit, the net system cost of approximately $10,500 for a 5 kW system yields a payback period of 8.6 years.

Phoenix ranks #1 in Arizona for solar potential based on annual GHI. This means 0 cities have higher solar irradiance in the state. As a top-ranked solar location, Phoenix offers particularly strong economics for solar installations.Browse other Arizona cities on our Arizona solar data page to compare locations.

For a typical home in Phoenix using 1,000 kWh/month, a 5 kW solar system producing 813 kWh/month would offset approximately 81% of a typical household's electricity use. Most residential installations in similar climates range from 5 to 12 kW depending on energy consumption, roof size, and budget. Use SolarScope's Site Studio to get a personalized system size recommendation based on your specific address and energy bills.

Based on local solar irradiance and electricity rates, a 5 kW residential solar system in Phoenix has an estimated payback period of 8.6 years. This calculation assumes a net system cost of $10,500 (after the 30% federal ITC) and annual savings of $1,219. Modern solar panels carry 25-year performance warranties, so systems in Phoenix would operate profitably for roughly 16 years after payback. Electricity rate increases over time typically reduce the effective payback period.
Learn more: Solar irradiance · Peak sun hours · GHI explained · Net metering · How solar analysis works

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Quick Stats

Annual GHI
5.78 kWh/m²/day
Peak Sun Hours
6.7 h/day
5kW Production
9,753 kWh/yr
Payback (5kW)
8.6 years
Rank in Arizona
#1
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