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
118 solar companies in Arizona provide pricing on SolarReviews. Here are the best rated companies near you.
4.94 348 Reviews
Gilbert Davila, 2 days ago
I highly recommend Arizona Solar Wave to anyone choosing to have a solar system installed. From our first contact with Brad, we knew we found our contractor. Brad’s knowledge and professionalism was evident as he explained how solar panels/inverters work, the process for determining system size, and especially that all work is completed by Arizona Solar Wave employees. Best of all, Brad is our direct contact with Arizona Solar Wave. There is no chance for miscommunication. Brad answered our questions quickly whether we called, text or emailed him. This home project was by far the best experience we’ve had with contractors. We are very happy with quality of work of our solar system.
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Gilbert Davila, 2 days ago
I highly recommend Arizona Solar Wave to anyone choosing to have a solar system installed. From our first contact with Brad, we knew we found our contractor. Brad’s knowledge and professionalism was evident as he explained how solar panels/inverters work, the process for determining system size, and especially that all work is completed by Arizona Solar Wave employees. Best of all, Brad is our direct contact with Arizona Solar Wave. There is no chance for miscommunication. Brad answered our questions quickly whether we called, text or emailed him. This home project was by far the best experience we’ve had with contractors. We are very happy with quality of work of our solar system.
4.93 399 Reviews
Tony Carrillo, over 1 month
I was so excited to buy my new house in the Cathedral City cove! After completing the never ending stack of Escrow documents I was finally into my new place. I then started getting the new home bills and new I needed to get solar on my house in order to reduce the outrageously high SCE bills. I contacted Renova and began working with Cory Hartman. He made the process of putting solar onto my house so easy and the documents he presented were easy to understand and the few questions I had were answered to satisfaction. The customer service received was absolutely stellar! This is the second home with Renova and both installs were seamless. -Tony C.
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Tony Carrillo, over 1 month
I was so excited to buy my new house in the Cathedral City cove! After completing the never ending stack of Escrow documents I was finally into my new place. I then started getting the new home bills and new I needed to get solar on my house in order to reduce the outrageously high SCE bills. I contacted Renova and began working with Cory Hartman. He made the process of putting solar onto my house so easy and the documents he presented were easy to understand and the few questions I had were answered to satisfaction. The customer service received was absolutely stellar! This is the second home with Renova and both installs were seamless. -Tony C.
4.91 215 Reviews
Ron Wagner, over 1 month
Black Platinum installed my Solar System and had it commissioned in 2008: 40 Solar Panels delivering 8.4KW of power. Last month, I had to have the 25 year-old roof replaced. No roofing contractor could handle the complications inherent with Solar Panel removal before, and replacement after, the new roof was installed. Black Platinum Solar & Electric, however, stepped up to the plate and managed the complete job with astonishing speed and completeness. To me, it was like John Black loaded the bases with his team . . .then, smashed a Homer. Thank you, Black Platinum Solar & Electric. Ron Wagner Surprise, AZ
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Ron Wagner, over 1 month
Black Platinum installed my Solar System and had it commissioned in 2008: 40 Solar Panels delivering 8.4KW of power. Last month, I had to have the 25 year-old roof replaced. No roofing contractor could handle the complications inherent with Solar Panel removal before, and replacement after, the new roof was installed. Black Platinum Solar & Electric, however, stepped up to the plate and managed the complete job with astonishing speed and completeness. To me, it was like John Black loaded the bases with his team . . .then, smashed a Homer. Thank you, Black Platinum Solar & Electric. Ron Wagner Surprise, AZ
4.83 174 Reviews
Jeffrey, over 1 month
Great process from start to finish. Install was done very quickly. No issues throughout entire process.
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Average cost (5kW system)
$13,750 ($2.75 per watt)
Jeffrey, over 1 month
Great process from start to finish. Install was done very quickly. No issues throughout entire process.
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.
4.73 71 Reviews
Cochise County Solar, over 1 month
It doesn't get any better than this. Net Zero's entire staff is super professional know what they are talking about and will astound you with their customer service. They took care of the County permitting, co-ordination with my current electricity provider, specs, diagrams, etc. Don't bother looking at other companies. Net Zero is the best. Chad, Trace, and Louis know what they are doing and have trained their staff to perfection. I'm happy to recommend them to the fullest extent.
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Cochise County Solar, over 1 month
It doesn't get any better than this. Net Zero's entire staff is super professional know what they are talking about and will astound you with their customer service. They took care of the County permitting, co-ordination with my current electricity provider, specs, diagrams, etc. Don't bother looking at other companies. Net Zero is the best. Chad, Trace, and Louis know what they are doing and have trained their staff to perfection. I'm happy to recommend them to the fullest extent.
4.68 123 Reviews
Virginia, over 1 month
We highly recommend Sun Valley Solar Solutions. We selected Sun Valley after reading extensively and interviewing six firms. Sun Valley stood out for providing unfailingly accurate, credible and useful information. We liked that Sun Valley is a local company with roots and a solid presence in Arizona and many years of solar experience. We're now operational and can say that every step of the way, Sun Valley confirmed that we made the right choice. Every Sun Valley person we worked with through the proposal, design, installation, and commissioning impressed us with their knowledge and commitment to getting the details right. All were wonderfully agreeable to boot. Thanks so much to Sam and Adrianne, and forgive us for not calling out each other contributor by name! Thanks to you all!
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Virginia, over 1 month
We highly recommend Sun Valley Solar Solutions. We selected Sun Valley after reading extensively and interviewing six firms. Sun Valley stood out for providing unfailingly accurate, credible and useful information. We liked that Sun Valley is a local company with roots and a solid presence in Arizona and many years of solar experience. We're now operational and can say that every step of the way, Sun Valley confirmed that we made the right choice. Every Sun Valley person we worked with through the proposal, design, installation, and commissioning impressed us with their knowledge and commitment to getting the details right. All were wonderfully agreeable to boot. Thanks so much to Sam and Adrianne, and forgive us for not calling out each other contributor by name! Thanks to you all!
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.
4.62 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.
4.61 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.
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