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Is Installing Solar Panels Worth It in Tempe, AZ?

Installing solar panels in Tempe, AZ is absolutely worth it. With an average of 300 sunny days per year, installing solar panels in Tempe, Maricopa County, Arizona, becomes a highly rewarding and worthwhile decision.

Investing in solar power is a crucial step toward clean energy and reducing greenhouse gases, helping to combat the greenhouse effect. In 2014, the city council implemented several solar projects across Tempe to work on the goal of generating a minimum of 20% of its energy from renewable sources by 2025. Additionally, Tempe’s local government has made the permitting process much quicker for residents compared to other cities in the valley.

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Join the solar revolution and get a free quote for a system built around your needs.

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How it Works

Looking to go solar and simplify the installation process? Look no further than our streamlined solar panel installation services, where our team of energy experts takes care of everything from design to monitoring—all in one place.

1 Consultation

Consultation

We offer free consultation to homeowners in Tempe to help you start saving right from the get-go. Our team will begin maximizing your potential savings by assessing all the incentives available to your specific address—from the utility company to federal and state tax credits.

2 Design & Permitting

Design & Permitting

Next, we’ll design a solar energy system best suited to your needs. Icon Power will factor everything from energy usage to roof space while handling the entire permitting process.

3 Installation

Installation

Icon Power personally handles every aspect of a solar panel and battery storage installation. We are 100% vertical, meaning we’ll take care of your project from start to finish. Thousands of homeowners across the Phoenix area trust us with commercial and residential solar installations.

4 Monitoring

Monitoring

With our mobile app, you can monitor solar production and savings. Communicate directly with our team and refer family and friends to earn cash.

Benefits of Solar Panel Installation in Tempe

Save on Electricity Bills

Make the switch to solar and you can save on electricity costs. It can lead to significant cost savings on monthly energy bills as Tempe has 300 sunny days per year on average—considerably more than the national average of 205 days. So, cost saving is the primary benefit for property owners. Homeowners can save 30% or more on electricity annually once solar panels are installed.

Tempe Solar Incentives, Tax Credits, and Rebates

We'll help you save on energy bills by utilizing available incentives from state and federal tax credits. Homeowners who choose to install solar panels at their residences are eligible for federal solar incentives, allowing them to receive 30% of the total installation cost back. Under solar tax exemption, homeowners are exempted from paying sales tax on their solar equipment. After the installation of solar systems, property owners in Tempe can take advantage of net metering by signing an agreement with the local utility company. This allows you to sell back the excess energy produced, further maximizing the benefits of solar panel installation.

Homeowners can Increase Property Value

Having solar panels installed on a home translates to long-term savings for the owners. A study by the National Bureau of Economic Research found that homes with solar panels sell for an average of $15,000 more than homes without solar panels. Additionally, homes in Tempe that are equipped with solar power tend to attract more potential buyers.

Key Factors to Consider Before Installing Solar Panels in Tempe, AZ

When considering solar panel installation in Tempe, it’s crucial to understand the various factors that can influence the overall solar installation costs. Here’s what you should keep in mind:

System Size

The size of your solar panel system plays a significant role in determining the cost. At Icon Power, our experts can guide you in selecting the right system size based on your energy consumption needs. While larger systems can generate more electricity, they may require a higher initial investment.

Energy Requirements

Assess your household or business’s energy consumption to determine the appropriate size of the solar panel system. Our knowledgeable Tempe solar team can provide valuable insights to help you make an informed decision. Higher energy needs may necessitate a larger system, which can affect the overall cost.

Roof Characteristics

The type and condition of your roof can impact installation costs. Factors such as roof material, slope, and age may require additional labor or specialized equipment for proper installation.

Sun Exposure

Tempe enjoys an abundance of sunny days throughout the year, making it an ideal location for harnessing solar energy. This natural advantage makes Icon Power the premier choice for optimal solar installation solutions in the area.

Our Clients

Don’t just take our word for it.

Rated 5 out of 5
Amazing experience! I recommend Jordan and Icon Power to everyone I know! Easy process, upfront and honest, reliable and we love seeing all the savings! We had been on the fence about solar for a few years and finally chose Icon because of how well everything was explained and they made it all make sense! So glad we went with them!
Belinda G.
Tempe, AZ.
Rated 5 out of 5
Great overall experience (Quote, design phase, installation, power on and communication) working with Kurt at Icon Power! The reason I went with Icon was because and great feedback of the company - sure enough; we are very happy with our choice - I would highly recommend Icon Power. Icon, provided one of the best quotes, the system used great components (panels, inverters and racking), the installers were knowledgeable and experienced and there were no city/ AHJ rejections hence the time to power on the system was very short. Icon also helped improve our house efficiency by improving our roof insulation! Thank you Icon!
Brian F.
Tempe, AZ.
Rated 5 out of 5
Very professional organization. Every individual encountered were polite, responsive, and extremely dedicated. When an issue occurred, contacting anyone in the company (from sales to installer) will assist and find the right people to fix it. Work quality is top notch and they show up when they say they will. Overall, we are extremely happy with their work and the follow up. Highly recommend!
Mario C.
Tempe, AZ.
2021 Top Solar Contractor
Ace Award Arizona Corporate Excellence
Inc. 5000 #146 award
Inc. Regionals Southwest #25
SRP - Preferred Solar Installer

How Much Does a Solar System Cost in Tempe?

The cost of installing solar panels in Arizona’s Tempe will vary based upon several factors, including property size, size of the system, and energy requirements. Additional equipment needed, like battery storage, may increase the cost of solar installation.

Affordable Solar Financing Options in Tempe, AZ

Financing Your Solar System in Tempe

At Icon Power, we understand that every customer’s financial situation is unique. That’s why we offer a range of flexible financing options to make solar panel installation accessible to everyone in Tempe, regardless of budget or circumstances.

One important update: the 30% federal residential solar tax credit (Section 25D) expired on December 31, 2025. Homeowners who buy a system with cash or a loan in 2026 receive no federal tax credit. The 30% credit does still exist under Section 48E — but only on third-party owned systems, where the system’s owner claims it and passes the value to you through lower payments. If a solar company is still promising you 30% back on a purchase, ask them to put it in writing.

Solar Lease / PPA

  • Start with a $0 down payment
  • Low, predictable monthly payments with a locked-in rate
  • 25-year production guarantee
  • The only remaining path to federal tax credit value. The system owner claims the 30% credit under Section 48E and passes it through as a lower rate
  • No tax liability required to benefit

Solar Loan

  • Start with $0 down
  • Own the solar panel system outright
  • Low monthly payments with a locked-in rate
  • 25-year performance guarantee
  • Terms available: 10, 15, 20, and 25 years
  • Best for homeowners who want ownership and the full long-term savings — you keep every kilowatt-hour your system produces for 25+ years

Cash Purchase

  • Purchase the solar panel system outright
  • Own the system with no monthly payments
  • 25-year performance guarantee
  • Lowest lifetime cost and fastest payback, with no interest and no monthly payment

Arizona incentives still apply to purchased systems: a 25% state tax credit (up to $1,000), no sales tax on solar equipment, and no property tax increase from the added home value.

Whether you prefer leasing, financing, or purchasing outright, Icon Power offers tailored solar solutions. Our experts will walk you through what each option actually costs you in Tempe — under current law, not last year’s. Contact us today to explore your options.

This is general information, not tax advice. Please consult a tax professional about your specific situation.

Why Choose Icon Power as Your Solar Installation Company?

For residents of Tempe, Arizona, Icon Power is a top choice for installing solar panels. We are the fourth-largest residential installer in Arizona and are proud to have Tempe as our national headquarters! Our solar experts will take care of the end-to-end process, including designing, installation, activation, and monitoring.

25 years of solar panels performance warranty

Get a free solar estimate

No upfront cost

100% Customer satisfaction

Communicate directly with our solar experts

Transparent pricing

Let's Start Something Iconic.

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and See How Much You Can Save.

Arizona City Pages Form

Tempe Solar Panel Installation FAQs

Most of Tempe is SRP territory, but the boundary runs by neighborhood, not city line — some Tempe addresses are served by APS. Check your electric bill or enter your address at srpnet.com or aps.com. This matters more than almost anything else about your solar decision: SRP credits exported solar at roughly 3¢/kWh and bills demand charges based on your single highest peak hour, while APS credits exports at closer to 7.6–10¢ with no demand charges. On SRP, a battery is usually what makes the numbers work.

Not for cash or loan purchases. The federal residential credit (Section 25D) expired December 31, 2025. If you buy a system outright in 2026, your federal credit is $0. The 30% credit does still exist under Section 48E for third-party owned systems (lease/PPA), where the system’s owner claims it and passes the value to you as a lower payment. Arizona’s state credit — 25% of system cost, capped at $1,000 — still applies to purchased systems, along with the sales tax and property tax exemptions

If your system was installed and operational before December 31, 2025, you claim the credit on the tax return for the year it was placed in service — that right isn’t retroactively removed. If you’re installing in 2026 or later, no federal residential credit is available for a purchase. Talk to a tax professional about your specific situation.

It depends on your actual usage, roof space, and shading — not a rule of thumb. Tempe homes run hard on air conditioning through the summer, which means annual averages hide the peak that actually drives system sizing. We’ll pull your 12-month usage and size to your real load. Get a free estimate to see your number.

Yes, though how much depends on your utility. Solar reduces what you buy from the grid, and every kilowatt-hour you use directly from your panels is worth more than one you export — especially on SRP, where exports earn about 3¢. Rather than quote you an average, we’ll model your bill against your actual rate plan.

Enough that it’s worth running your real numbers rather than trusting a range. Savings depend on your utility, your usage, your system size, and whether you add storage. Our estimate tool gives you a ballpark in about a minute using your utility and monthly bill.

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