How much do solar panels save?
Savings depend on three numbers from your own utility, not on a national average. Here's the math and what it gives in real cities.
A 7 kW system saves about $1,204 a year, or $100 a month, with Arizona Public Service in Phoenix. Savings = power used at home × your energy charge + power exported × the export credit. Across the utilities below a 7 kW system saves $1,125–$2,641 a year.
Savings by utility and system size
Yearly and monthly savings with 50% of production used at home, today's energy charges and export credits:
| City | Utility | 5 kW | 7 kW | 10 kW |
|---|---|---|---|---|
| Phoenix | Arizona Public Service | $860 · $72/mo | $1,204 · $100/mo | $1,720 · $143/mo |
| Phoenix | Salt River Project | $808 · $67/mo | $1,131 · $94/mo | $1,616 · $135/mo |
| Tucson | Tucson Electric Power | $889 · $74/mo | $1,244 · $104/mo | $1,777 · $148/mo |
| Austin | Austin Energy | $958 · $80/mo | $1,342 · $112/mo | $1,917 · $160/mo |
| Chandler | Salt River Project | $807 · $67/mo | $1,130 · $94/mo | $1,615 · $135/mo |
| Scottsdale | Arizona Public Service | $855 · $71/mo | $1,197 · $100/mo | $1,710 · $143/mo |
| Scottsdale | Salt River Project | $804 · $67/mo | $1,125 · $94/mo | $1,607 · $134/mo |
| Gilbert | Salt River Project | $806 · $67/mo | $1,128 · $94/mo | $1,612 · $134/mo |
| Glendale | Salt River Project | $808 · $67/mo | $1,131 · $94/mo | $1,615 · $135/mo |
| Tempe | Salt River Project | $807 · $67/mo | $1,130 · $94/mo | $1,614 · $134/mo |
| Peoria | Arizona Public Service | $868 · $72/mo | $1,215 · $101/mo | $1,736 · $145/mo |
| Surprise | Arizona Public Service | $875 · $73/mo | $1,225 · $102/mo | $1,750 · $146/mo |
| Toms River | Jersey Central Power & Light | $1,344 · $112/mo | $1,881 · $157/mo | $2,687 · $224/mo |
| New York | Consolidated Edison Co of New York | $1,886 · $157/mo | $2,641 · $220/mo | $3,772 · $314/mo |
| Elizabeth | Public Service Electric & Gas | $1,120 · $93/mo | $1,568 · $131/mo | $2,240 · $187/mo |
| Yonkers | Consolidated Edison Co of New York | $1,837 · $153/mo | $2,572 · $214/mo | $3,675 · $306/mo |
Utilities without a single export rate (PG&E and SDG&E net billing, CPS Energy) are left out; the calculator handles them with your bill. Method on the methodology page.
Savings change every month
Panels make more in spring and summer. A 7 kW system in Phoenix with Arizona Public Service, by month (NREL PVWatts):
| Month | kWh made | Savings |
|---|---|---|
| Jan | 826 | $81 |
| Feb | 861 | $84 |
| Mar | 1,057 | $104 |
| Apr | 1,190 | $117 |
| May | 1,246 | $122 |
| Jun | 1,211 | $119 |
| Jul | 1,106 | $108 |
| Aug | 1,085 | $106 |
| Sep | 1,029 | $101 |
| Oct | 994 | $97 |
| Nov | 868 | $85 |
| Dec | 819 | $80 |
Why your bill won't drop to $0
- Fixed charges stay. Monthly service and grid charges are billed with or without solar.
- Exports earn less. Arizona Public Service credits exports at 5.55¢ against about 14.1¢ for power you buy.
- Night and cloudy hours. You still buy power when panels aren't producing.
Raise your savings
- Use more power while the sun is up: run the dishwasher, laundry, pool pump or EV charging in the day.
- Pick the utility plan made for solar customers if it fits your use.
- Don't oversize the system where exports earn little: how many panels you need.
From savings to payback
Payback = (price − state credits and rebates) ÷ yearly savings. At today's Phoenix average quote the 7 kW system above pays back in 12.4 years: is solar worth it in 2026.
Run your own numbers
Enter your ZIP and bill to estimate savings with your own utility's rates.
Keep reading
- How much solar panels cost in 2026 — Average price per watt by state and city, and what a 5, 7 or 10 kW system costs before incentives.
- Is solar worth it in 2026? — Payback without the federal credit in the cities I cover, and when solar is a weak deal.
- Disadvantages of solar panels — Nine downsides to weigh before you sign, with numbers from real tariffs.
Installer records by city: solar companies in Phoenix, solar companies in Tucson, solar companies in San Antonio, solar companies in Austin, solar companies in San Diego, solar companies in Fresno, solar companies in Chandler, solar companies in Scottsdale, solar companies in Gilbert, solar companies in Glendale, solar companies in Tempe, solar companies in Peoria, solar companies in Surprise, solar companies in San Jose, solar companies in Bakersfield, solar companies in Clovis, solar companies in Chula Vista, solar companies in Oceanside, solar companies in Carlsbad, solar companies in Toms River, solar companies in New York, solar companies in Elizabeth, solar companies in Yonkers.
Updated 2026-09-26.