Solar ROI in Phoenix
Stop renting your power and start owning it. For residents of Phoenix, the transition to solar is becoming a financial no-brainer. Grid rates have been climbing, currently sitting at $0.14/kWh.
By leveraging the 6.5 hours of sunlight your roof receives every day, you can lock in your energy costs for the next 25 years.Your city's exceptional solar potential makes this investment perform even better than in most regions.
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Solar Potential Report
Prepared for property in Phoenix
April 5, 2026
Executive Summary
Input Parameters
| Current Monthly Bill | $150 |
| Electricity Rate | $0.14/kWh |
| Daily Peak Sun Hours | 6.5 hours |
| Location | Phoenix, USA |
| Govt. Subsidy Eligible | $6,154Federal Solar Tax Credit (ITC) |
Why Solar Works Here
Phoenix receives an average of 6.5 hours of sunlight per day. With current electricity rates at $0.14/kWh, switching to solar replaces a permanent rental cost (utility bill) with a temporary investment cost (solar system). After the 5.7-year payback period, your energy production is essentially free.
Generated by CostSmart Solar Calculator. Estimates are based on average irradiance data and standard installation costs.
Visit https://costsmart.app for live updates.
How Solar Panels Save You Money
How do Solar Panels Work? (TED-Ed)
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Local Solar Stats
- Daily Sun Hours6.5 hrs
- Grid Cost0.14/kWh
- Install Cost~2400/kW
Solar ROI FAQs for Phoenix
How accurate is the solar ROI calculator?
Our calculator uses official solar irradiance data and current electricity rates to provide estimates within ±10% accuracy. Actual savings may vary based on system efficiency, maintenance, and weather patterns.
What factors affect solar panel ROI?
Key factors include: local electricity rates, average daily sunlight hours, system installation cost, available subsidies, system efficiency, maintenance costs, and electricity consumption patterns.
How long does it take to recover solar investment?
In most Indian cities, the payback period ranges from 4-7 years depending on electricity rates and system size. After this, you essentially get free electricity for the remaining 20+ years of panel life.
Are government subsidies included in calculations?
Yes, our calculator factors in central government subsidies for residential solar installations up to 10 kW capacity. State-level subsidies vary and should be verified locally.