Federal ITC 30% (tax credit)
State tax credit: Yes ($1,000)
Net metering (by utility)
There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
Arizona is one of the sunniest states in the country. Because of this fact alone, you can save a lot of money here with solar. But your solar savings can be even higher when you take advantage of the rebates and incentives the state has in place.
Many of the incentives that used to be available to Arizonians have since expired. But, there are still enough incentive programs left that can save you thousands of dollars on a solar installation and your electricity bills.
Read on to see what incentives you qualify for, or use our calculator above to see how much you can save with solar.
Learn what solar incentives are available to Arizona homeowners
See what Arizona solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or Arizona solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Arizona
If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% 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 30% = $6,000.
The federal tax credit falls to 26% starting in 2033.
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.
Technically, Arizona does not require full retail net metering for solar homeowners. Instead, utilities in The Grand Canyon State offer net billing. Net billing works almost exactly like net metering, but instead of paying full price for the excess solar energy you send to the grid, the utility will pay you at a slightly lower rate called the excess generation credit rate.
Don’t worry - net billing can still save you a pretty penny on your electricity bill. The exact rate excess solar energy is worth depends on your utility company, but generally, the excess generation credit rate is only about $0.03 cheaper than the full retail rate. These rates still allow for a decent return on your investment in solar.
Arizona doesn't have as many solar incentives as it used to, mostly because utilities have started meeting their renewable portfolio standard goals. But Arizona still has a handful of statewide solar incentives available to homeowners, and a couple of utilities and electric co-ops have solar and energy storage rebates as well.
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’s a nice bonus to add to the 30% federal solar tax credit, which has no incentive cap and can be claimed over multiple years if necessary.
Just like any home upgrade, a solar installation will increase your property value. While this is great if you’re going to sell your home, you might be worried about what it’ll do to your property taxes. Luckily, any home value increase from solar panels is exempt from your property taxes.
Not only that, solar equipment is exempt from state sales taxes, so the price of your equipment will be a bit lower as well.
Solar batteries are becoming more and more popular each year. While the price of pairing solar with storage has definitely gone down, it’s still pretty expensive. Some utilities have started to roll out energy storage rebates to help homeowners reduce the cost of battery installations while also helping out the utility grid.
Arizona Public Service (APS) customers, for example, can receive a rebate of up to $3,750 when they install qualified energy storage systems! This makes installing energy storage a better investment for homeowners.
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Prices based on a 8.3kW system, after 30% federal tax credit
113 solar companies in Arizona provide pricing on SolarReviews. Here are the best rated companies near you.
4.95 339 Reviews
Hemant Modi, 5 days ago
It has been a pleasure working with Mike and Brad for our System at home. Mike was very helpful upfront and took time and patience to explain everything in details. Brad followed it up with the permitting, install and start up. We had our Inverter not working and Brad was on top of the solution. We got a knock on our door by their technician informing us of the problem, he replaced the inverter but had issue getting it started. He and Brad followed up and got us up and running in 2 days. Brad was available by phone and kept us informed. I would suggest that you call Mike if you are in the market for a Solar system.
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Hemant Modi, 5 days ago
It has been a pleasure working with Mike and Brad for our System at home. Mike was very helpful upfront and took time and patience to explain everything in details. Brad followed it up with the permitting, install and start up. We had our Inverter not working and Brad was on top of the solution. We got a knock on our door by their technician informing us of the problem, he replaced the inverter but had issue getting it started. He and Brad followed up and got us up and running in 2 days. Brad was available by phone and kept us informed. I would suggest that you call Mike if you are in the market for a Solar system.
4.91 212 Reviews
Roxanne Pastore, over 1 month
I was very happy with Black Platinum Solar. They managed to come within a day or two of contacting them. They were always available to answer questions and gave good instructions on how to operate the equipment and troubleshoot.
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Roxanne Pastore, over 1 month
I was very happy with Black Platinum Solar. They managed to come within a day or two of contacting them. They were always available to answer questions and gave good instructions on how to operate the equipment and troubleshoot.
4.82 167 Reviews
Denise Treat, 2 weeks ago
We first heard of Sunny Energy as a result of a presentation being held at our community, which was super informative. The entire process from contract signing, to initiating the project once we knew when our new construction home was closing, to the installation process was seamless. The text/e-mail communications throughout the installation process were super helpful. Would recommend Sunny Energy to anyone looking to go solar!
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Average cost (5kW system)
$13,750 ($2.75 per watt)
Denise Treat, 2 weeks ago
We first heard of Sunny Energy as a result of a presentation being held at our community, which was super informative. The entire process from contract signing, to initiating the project once we knew when our new construction home was closing, to the installation process was seamless. The text/e-mail communications throughout the installation process were super helpful. Would recommend Sunny Energy to anyone looking to go solar!
4.78 78 Reviews
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.
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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
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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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.
4.68 74 Reviews
LouK, over 1 month
Rooftop Solar provided an excellent and accurate proposal. Follow-up was very good. Price increased from original proposal due to panel availability.
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LouK, over 1 month
Rooftop Solar provided an excellent and accurate proposal. Follow-up was very good. Price increased from original proposal due to panel availability.
4.67 122 Reviews
AG-archs, over 1 month
Unfortunately, the operator named Charles decided that it was easier to continue disconnecting our conversation than to tell me whether or not Sun Valley Solar was interested in providing a fee for a commercial solar design project. So I couldn't even get to the point of talking with someone who could assist me. I'd love to be able to give a review based on the company's solar abilities, but the customer service was lacking to the point that I couldn't even get there. Hopefully, you all have a better operator experience than I did. Sun Valley Solar came highly recommended to me, but I guess I won't have the opportunity to find out.
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AG-archs, over 1 month
Unfortunately, the operator named Charles decided that it was easier to continue disconnecting our conversation than to tell me whether or not Sun Valley Solar was interested in providing a fee for a commercial solar design project. So I couldn't even get to the point of talking with someone who could assist me. I'd love to be able to give a review based on the company's solar abilities, but the customer service was lacking to the point that I couldn't even get there. Hopefully, you all have a better operator experience than I did. Sun Valley Solar came highly recommended to me, but I guess I won't have the opportunity to find out.
4.62 59 Reviews
Wally W, over 1 month
Straight talk, no jive, no hard sell, no hidden details. Best price (on best quality components) among half a dozen that I talked to. I was able to pay cash avoiding the extra cost and hassle of a loan or lease. Good workmanship, showed up when they said they would. System has worked well and I haven't paid APS a dime since it was installed end of September. These guys are a fine local company, I have only good things to say about them.
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Average cost (5kW system)
$10,250 ($2.05 per watt)
Wally W, over 1 month
Straight talk, no jive, no hard sell, no hidden details. Best price (on best quality components) among half a dozen that I talked to. I was able to pay cash avoiding the extra cost and hassle of a loan or lease. Good workmanship, showed up when they said they would. System has worked well and I haven't paid APS a dime since it was installed end of September. These guys are a fine local company, I have only good things to say about them.
4.62 35 Reviews
Timothy & Janice Carlton, over 1 month
(no comments provided)
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Timothy & Janice Carlton, over 1 month
(no comments provided)
4.61 76 Reviews
Liz, over 1 month
Dave is a professional. He is not only very knowledgeable about solar, but is an excellent communicator, honest and has a team of very hard working individuals. They are thorough, and respectful of your property. Dave returns emails and phone calls in a timely manner. I would highly recommend him. I interviewed several companies, and his company was by far the best.
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Liz, over 1 month
Dave is a professional. He is not only very knowledgeable about solar, but is an excellent communicator, honest and has a team of very hard working individuals. They are thorough, and respectful of your property. Dave returns emails and phone calls in a timely manner. I would highly recommend him. I interviewed several companies, and his company was by far the best.
For more information about going solar near where you live, check out the following resources: