Summary of Arizona solar incentives 2021
Arizona is one of the sunniest states in the country. Just because of this fact alone, you can save a lot of money here with solar. Arizona’s renewable portfolio standards require utilities to generate a portion of their renewable output from distributed energy technologies -- 30% to be exact. Half of this requirement must be derived from residential installations.
Luckily for you, this requirement can be fulfilled by residential solar systems, but it is not limited to just solar panels. These conditions have created the right environment for utility companies in Arizona to offer residential solar incentives.
In addition to reading on to see what incentives you qualify for, use our calculator above to see how much you can save with solar.
On this page, you can:
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Learn what solar incentives are available to Arizona homeowners
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See what Arizona solar incentives you qualify for based on your utility company and city
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Find out how much these incentives and/or Arizona solar tax credits will reduce your cost to go solar and add batteries
Federal solar investment tax credit
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Arizona
This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% off the entire cost of the system including equipment, labor and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 26% = $5,200.
The federal tax credit falls to 22% at the end of 2022.
Net energy metering in Arizona
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
Net metering policy lets you store the extra solar energy you produce and aren’t able to use at home with the utility. They then credit your bill at night when the sun ain’t shining. So, no batteries needed.
While Arizona’s net metering policy is not as strong as other states, you can still save quite a bit of money even with the extra fees on solar owners and reduced payments for your electricity that APS has successfully lobbied for.
There are a whole host of confusing solar rate plans offered by the three major utility companies here, which sound like they are an exceptional deal for solar owners. However, the average net metering rates for APS, SRP, and TEP are about $0.03/kWh, significantly less than your retail rates, but at least it’s something.
If anything, this low net metering rate encourages solar owners to store more energy onsite with home battery systems.
Arizona solar rebates
With its strong renewable portfolio standard, Arizona once had a great variety of solar panel rebate programs offered by nearly all the state's electric utilities. However, many of those generous solar panel rebate programs have been exhausted because utilities are getting close to meeting their requirements for off-site solar electricity production.
The good news is some rebates still exist for certain homeowners. The bad news is that they only exist for customers of a handful of rural electric co-ops. If you're a customer of any of the co-ops listed below, you're in luck.
Home energy storage rebate
SRP offers a battery storage incentive program that offers direct rebates to homeowners who install solar batteries. The current incentive offers $300 per kWh of storage, up to $3,600 maximum. At $300/kWh, this accounts for about half of the cost of the battery itself (not including installation).
At that price, home batteries begin to make a lot more sense, especially given their ability to eliminate your daily peak usage and reduce demand charges associated with net metering rates.
Arizona solar tax credit
Every resident in Arizona who installs solar panels gets a State Tax Credit of 25% of the total system cost, up to $1,000, to be used toward State income taxes.
That is a nice bonus to add to the 26% Federal Solar Tax Credit. There's no cap on the federal tax credit and it can be claimed over multiple years if necessary.
Solar sales and property tax exemptions in Arizona
Your solar installation will increase your property value by an average multiple of twenty times your annual electricity savings. In Arizona, that can amount to an average amount north of $30,000. Luckily, that home value increase is exempt from property tax assessments.
Moreover, solar equipment is also exempt from sales taxes, so you save more upfront here by avoiding that.
Cost of solar panels in your part of Arizona after all applicable solar incentives
Showing data for:
Prices based on a 8.3kW system, after 26% federal tax credit
Solar prices near you
Payback period
7.3-8.9 years
Net profit (savings less system cost)
$35,212-$43,037
Average size system installed in AZ in 2021
8.3kW
Solar panel cost calculator
Best 10 solar companies in Arizona
105 solar companies in Arizona provide pricing on SolarReviews. Here are the best rated companies near you.
4.95 281 Reviews
Latest review
Arizona Vince, 4 days ago
The sales and installation teams were top of their game efficient and well trained. Very good customer service. I will recommend them to our neighbor
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Latest review
Arizona Vince, 4 days ago
The sales and installation teams were top of their game efficient and well trained. Very good customer service. I will recommend them to our neighbor
4.92 206 Reviews
Latest review
Gary Shapiro, over 1 month
I don't often write reviews, but was so happy with my recent solar installation by Black Platinum Solar and Electric, I asked them if I could write a review! I started discussing my solar needs with four different solar companies in December of 2020. Black Platinum came onto my radar due to their many positive reviews in Nextdoor.com. In late January I chose them because the sales manager David Armstrong was most informative and the most responsive to my many questions. There was no sales pitch, just an honest desire to help me make an informed decision. My system was designed in early February and installed in early March. Everything went exactly on schedule. The crew was on time and cleaned up after themselves. The owner John Black personally phoned me several times to ensure I was informed about the progress and answer any questions I had. My system is now up and running, and I could not be happier. And John followed up again to be sure I was happy. I truly am.
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Latest review
Gary Shapiro, over 1 month
I don't often write reviews, but was so happy with my recent solar installation by Black Platinum Solar and Electric, I asked them if I could write a review! I started discussing my solar needs with four different solar companies in December of 2020. Black Platinum came onto my radar due to their many positive reviews in Nextdoor.com. In late January I chose them because the sales manager David Armstrong was most informative and the most responsive to my many questions. There was no sales pitch, just an honest desire to help me make an informed decision. My system was designed in early February and installed in early March. Everything went exactly on schedule. The crew was on time and cleaned up after themselves. The owner John Black personally phoned me several times to ensure I was informed about the progress and answer any questions I had. My system is now up and running, and I could not be happier. And John followed up again to be sure I was happy. I truly am.
4.79 114 Reviews
Latest review
Gabe, 1 month ago
A friend of ours from Glendale recommended Sun Valley Solar Solutions to us. A couple of year later that was the company we called. All their employees were courteous and professional. The installation was spotless and we started producing electricity in January of 2021. Everything has worked spectacularly. Six stars for Sun Valley Solar!
Read more
Latest review
Gabe, 1 month ago
A friend of ours from Glendale recommended Sun Valley Solar Solutions to us. A couple of year later that was the company we called. All their employees were courteous and professional. The installation was spotless and we started producing electricity in January of 2021. Everything has worked spectacularly. Six stars for Sun Valley Solar!
4.78 78 Reviews
Latest review
Jerry M , over 1 month
We contracted w/ TFS at the end of 2019. Then the pandemic hit and we weren't sure what was going to happen to our business. TFS was willing to put the solar installation on hold until we were ready, no pressure to move forward. We eventually got back on track and had our solar installed. It works great! Our electric bill last month (July) was $18.
Read more
Latest review
Jerry M , over 1 month
We contracted w/ TFS at the end of 2019. Then the pandemic hit and we weren't sure what was going to happen to our business. TFS was willing to put the solar installation on hold until we were ready, no pressure to move forward. We eventually got back on track and had our solar installed. It works great! Our electric bill last month (July) was $18.
4.76 70 Reviews
Latest review
Russell Lowes, over 1 month
We received 4 quotes, with Net Zero Solar giving us the best bid. There was one national company, Sungevity, in the mix of bids (since gone out of business) with by far the highest quote. The other quotes were reasonably within range, but Net Zero Solar had the most complete bid and information. Installed in 2013, we have had no problems with the LG panels or Enphase microinverters, or any other part of the system. We have already broken even and are enjoying a great photovoltaic system. The staff there is great -- I highly recommend them.
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Latest review
Russell Lowes, over 1 month
We received 4 quotes, with Net Zero Solar giving us the best bid. There was one national company, Sungevity, in the mix of bids (since gone out of business) with by far the highest quote. The other quotes were reasonably within range, but Net Zero Solar had the most complete bid and information. Installed in 2013, we have had no problems with the LG panels or Enphase microinverters, or any other part of the system. We have already broken even and are enjoying a great photovoltaic system. The staff there is great -- I highly recommend them.
4.74 111 Reviews
Latest review
Bob R, 7 hours ago
After extensive research, we determined that adding solar made sense in our situation. After additional research, and discussion with other providers, we determined that Sunny Energy was the best choice. Each person’s case for solar is different, but the math and physics are relatively simple. Sunny Energy proactively managed every step of the process from the initial engineering to permitting, installation, inspection and approvals through to commissioning. No hard sell, just results.
Read more
Average cost (5kW system)
$13,750 ($2.75 per watt)
Latest review
Bob R, 7 hours ago
After extensive research, we determined that adding solar made sense in our situation. After additional research, and discussion with other providers, we determined that Sunny Energy was the best choice. Each person’s case for solar is different, but the math and physics are relatively simple. Sunny Energy proactively managed every step of the process from the initial engineering to permitting, installation, inspection and approvals through to commissioning. No hard sell, just results.
4.66 68 Reviews
Latest review
Patrick, 4 weeks ago
This team mimicked the best formula 1or Indy crew for teamwork and performance. They got to work and got the roof supports installed and pressed on to the panels. They were quickly put in place, hooked up, tested and passed. I was sure it was a two day job but only 4 hours it was done. Impressive is an understatement.
Read more
Latest review
Patrick, 4 weeks ago
This team mimicked the best formula 1or Indy crew for teamwork and performance. They got to work and got the roof supports installed and pressed on to the panels. They were quickly put in place, hooked up, tested and passed. I was sure it was a two day job but only 4 hours it was done. Impressive is an understatement.
4.62 58 Reviews
Latest review
William Baughman, over 1 month
My 8kw system works great. On a sunny day in spiring time I get over 60 kw/hrs a day. Many months I pay the APS minimum monthly charge plus build up my bank for hotter months. If you have not already get a solar system buy one.
Read more
Average cost (5kW system)
$10,250 ($2.05 per watt)
Latest review
William Baughman, over 1 month
My 8kw system works great. On a sunny day in spiring time I get over 60 kw/hrs a day. Many months I pay the APS minimum monthly charge plus build up my bank for hotter months. If you have not already get a solar system buy one.
4.62 35 Reviews
Latest review
Timothy & Janice Carlton, over 1 month
(no comments provided)
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Latest review
Timothy & Janice Carlton, over 1 month
(no comments provided)
4.62 25 Reviews
Latest review
NM_dissapointed, 2 weeks ago
Bill range before:50-80/month Bill range after:9-25/month + 61/month solar payoff over 20 years Initialization: 3 stars (downgraded due to promises not being honored) Worked with a few vendors on quotes and FE gave the best deal right off the bat (annual production/cost). Door to door guy was very friendly and professional connecting us and informing me on FE practices. Both discussed incentives and guarantees that For Energy would honor. Claims made that sold me vs their competitors: 1. For Energy will handle all the headaches of setup (dealing with installers, getting permits, setups with utility, inspections, etc.) - True 2. your system will be monitored for issues and handled proactively - kind of false. If your system is broken, the installer may act, but not sure, what they certainly wont do is make sure your contracted annual production amount will be met. This was a big sales point for me. The sales people confidently claimed they would not just meet a production amount but likely exceed it just to make the customer happy. 3. "Your system is eligible for state refunds and we'll help you with the info you need to get it" - kinda true. state refund is proving more problematic, they gave me the wrong form and none of the identification numbers like CRS id number. told me to work with an accountant Install: 4 stars (downgraded due to survey claims) Titan did the survey and install. Before hand I was told the best location on my roof but requested an apparently less optimal spot over garage so any future leaks would have minimal impact on the home. I was told the location may be effected by a tree nearby and asked they take that into consideration in the survey. If the survey showed it would impact annual production, then put it where they needed to to meet their promises. I was told the location would be fine given the shallow slope of our roof and how panels would be mounted. This ended up not being true so the surveyer/For energy failed on this front and should have just put it in the original spot like I asked. In the end though, they made it all look clean and well sealed and it worked. FE walked me thru the hardware and basic troubleshoot advice like post storm checks and home insurance updates. Then looked over hardware via teleconference to see final looks. Operation: 2 stars Almost 1 year in and the system is 20% short of contracted annual production. I was told they'd watch for issues and handle it ahead of time but I had to reach out to them and after a month I still hadn't been followed up with beyond the "we will look into it" line. Upon a second corporate request I finally got someone to engage with on the matter. Customer service: 2 stars Everyone I worked with on my setup and that made promises, no longer works there. A company can use temp workers in this manner to falsely advertise then back out as a corporation. They would have probably worked with me had I been able to find evidence. I thought I kept everything in gmail, but since I can't find it, I must have used something else. I know they have a portal site they use a lot so if your chatting over that, print and save everything. I will credit them 2 stars for at least trying to work with me. They offered me a "break even" price which is where I pay a no profit cost to increase production to what they promised up front, but once you lose that trust, its hard to justify letting someone continue to cost you. Last thing I need is second rate rushed installation for example causing damage to the roof or existing hardware, and the system is modular and I could honestly just add on to it myself if I want to later. Lessons Learned: Solar brokers (like For Energy) simplify install process but your local solar installer may do the same steps already, if you have been working with a door to door initiated person, get good records of everything as the long term corp only seems to honor functional hardware and proper install...again though, this is through the solar installer.
Read more
Latest review
NM_dissapointed, 2 weeks ago
Bill range before:50-80/month Bill range after:9-25/month + 61/month solar payoff over 20 years Initialization: 3 stars (downgraded due to promises not being honored) Worked with a few vendors on quotes and FE gave the best deal right off the bat (annual production/cost). Door to door guy was very friendly and professional connecting us and informing me on FE practices. Both discussed incentives and guarantees that For Energy would honor. Claims made that sold me vs their competitors: 1. For Energy will handle all the headaches of setup (dealing with installers, getting permits, setups with utility, inspections, etc.) - True 2. your system will be monitored for issues and handled proactively - kind of false. If your system is broken, the installer may act, but not sure, what they certainly wont do is make sure your contracted annual production amount will be met. This was a big sales point for me. The sales people confidently claimed they would not just meet a production amount but likely exceed it just to make the customer happy. 3. "Your system is eligible for state refunds and we'll help you with the info you need to get it" - kinda true. state refund is proving more problematic, they gave me the wrong form and none of the identification numbers like CRS id number. told me to work with an accountant Install: 4 stars (downgraded due to survey claims) Titan did the survey and install. Before hand I was told the best location on my roof but requested an apparently less optimal spot over garage so any future leaks would have minimal impact on the home. I was told the location may be effected by a tree nearby and asked they take that into consideration in the survey. If the survey showed it would impact annual production, then put it where they needed to to meet their promises. I was told the location would be fine given the shallow slope of our roof and how panels would be mounted. This ended up not being true so the surveyer/For energy failed on this front and should have just put it in the original spot like I asked. In the end though, they made it all look clean and well sealed and it worked. FE walked me thru the hardware and basic troubleshoot advice like post storm checks and home insurance updates. Then looked over hardware via teleconference to see final looks. Operation: 2 stars Almost 1 year in and the system is 20% short of contracted annual production. I was told they'd watch for issues and handle it ahead of time but I had to reach out to them and after a month I still hadn't been followed up with beyond the "we will look into it" line. Upon a second corporate request I finally got someone to engage with on the matter. Customer service: 2 stars Everyone I worked with on my setup and that made promises, no longer works there. A company can use temp workers in this manner to falsely advertise then back out as a corporation. They would have probably worked with me had I been able to find evidence. I thought I kept everything in gmail, but since I can't find it, I must have used something else. I know they have a portal site they use a lot so if your chatting over that, print and save everything. I will credit them 2 stars for at least trying to work with me. They offered me a "break even" price which is where I pay a no profit cost to increase production to what they promised up front, but once you lose that trust, its hard to justify letting someone continue to cost you. Last thing I need is second rate rushed installation for example causing damage to the roof or existing hardware, and the system is modular and I could honestly just add on to it myself if I want to later. Lessons Learned: Solar brokers (like For Energy) simplify install process but your local solar installer may do the same steps already, if you have been working with a door to door initiated person, get good records of everything as the long term corp only seems to honor functional hardware and proper install...again though, this is through the solar installer.
Solar guides for your Arizona city
For more information about going solar near where you live, check out the following resources:
Useful links
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