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 $865–$1,244 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 | $618 · $52/mo | $865 · $72/mo | $1,236 · $103/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.
Updated 2026-09-15.