Solar ROI Calculator

Accurate analysis for Arizona homeowners using real APS Time-of-Use rates (March 2026)

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Solar System Configuration

Customize for your home — all calculations use current APS TOU rates

8 kW

~24 panels (8000W system)

$2.85/W
Budget ($2.00)Average ($2.85)Premium ($4.00)
35%

Without battery: 25-40% typical. With battery: 60-85%. Rest is exported at $0.076/kWh.

Your Solar ROI

Net Cost

$21,800

Gross: $22,800

Year 1 Savings

$1,448

$121/mo

Payback

12.9 yrs

Within warranty

25-Year ROI

123.9%

$48,821

Year 1 Savings Breakdown

Self-consumed savings$698
Net billing export$750
Annual production15,184 kWh
LCOE$0.063/kWh

Incentives Applied

Federal Solar ITC$0 (Expired 2025)
AZ State Credit (25%)-$1,000

The federal solar ITC expired in 2025. Adding a battery qualifies for a separate 30% federal tax credit through 2032 — see the Battery Calculator.

25-Year Cumulative Savings

The federal solar Investment Tax Credit (ITC) expired in 2025. Solar-only systems no longer receive a federal tax credit. Consider adding a battery (30% ITC still available through 2032).

APS Rates Used: Peak (4-7pm) $0.3439/kWh summer, $0.2145/kWh winter. Off-peak $0.1235/kWh summer, $0.1035/kWh winter. Export: $0.076/kWh net billing.

Assumptions: 6.5 peak sun hours (Phoenix avg), 0.75% annual degradation (AZ heat), 3% annual rate escalation, inverter replacement at year 12.

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Solar ROI Calculator — Arizona APS | Clean Energy Hub