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
107 solar companies in Arizona provide pricing on SolarReviews. Here are the best rated companies near you.
4.95 288 Reviews
Latest review
Adam Legere, 1 week ago
The staff was friendly from the beginning and not pushy about the slaw like most others. The minor issues I have had I was ably call Brad any day including weekends and he has been a big help with us being new to this solar adventure. I have never used a solar company before but we did get five quotes and this one was the best with the best customer service by far. I would recommend using them!
Read more
Latest review
Adam Legere, 1 week ago
The staff was friendly from the beginning and not pushy about the slaw like most others. The minor issues I have had I was ably call Brad any day including weekends and he has been a big help with us being new to this solar adventure. I have never used a solar company before but we did get five quotes and this one was the best with the best customer service by far. I would recommend using them!
4.92 209 Reviews
Latest review
Howard Jow, 3 weeks ago
We started taking bids for solar earlier in 2021. Some companies only wanted to push an expensive lease option that would have cost us more than $60000 out of pocket by the end of the lease! Sure, they take care of all maintenance and repairs, but when you do a little bit more research you can find that reputable companies have 25 year warranties on their products. Luckily, I started reading about microinverters and decided that I wanted an Enphase microinverter instead of a string inverter. From there, I searched Enphase's website for an installer in my zip code and Black Platinum showed up as a "platinum" level installer. At the time, the next one listed had a "gold" status. We got a quote for $38000 for 13.3kW with LG Panels and Enphase microinverters. The payoff at the time was ten years, but recently Arizona is pushing APS to cut the off peak time from 3pm to 8pm to 4pm to 7pm and they are forcing them to stop charging people with solar for a grid connection fee. These changes will definitely shorten our payoff time a little. Black Platinum had us make the payments in four phases which worked out for us to help space out the large checks. The first phase involves getting city permits, the second phase is installation, and the last phase is APS approving the install and giving you the go ahead to flip the switch and turn on the system. We opted for no battery in our system since our solar buyback rate is locked for ten years. After ten years, I'm anticipating battery technology to be much more superior along with the Enphase technology for being able to go "off grid" while still being connected to the grid in the event of a power outage. After the install, we had a few hiccups that either we solved or Black Platinum solved: 1. One of the trees that the previous owners planted was shading my roof and blocking sun to three of my panels. I had my landscaper trim the tree down beneath the roof line on my house. He still needs to work with my neighbor to trim the same tree on my neighbor's side. The three panels are probably running at about 60% right now (up from 16% when they were shaded). 2. Three panels did not have power after the system was turned on. Two of them weren't plugged in correctly and the third needed a new microinverter. I coordinated with David (Sales Manager) to get the repair team to my home to fix these three panels. I love the Enphase Enlighten app for my Android phone. It shows your energy use so you know when you are doing things during peak energy charges. It helped us realize that if we shower between 3pm and 8pm it uses 5kW just to refill the water heater. Now we shower outside of that window given that our APS bill is negative at the moment (it could be even more negative). The way our system is designed we are expecting to get money back during the cooler months and we're expecting to pay some money during the four hot months in the summer. It should balance itself out. We are looking forward to getting the rebate next year and hope that the solar tax credit is extended to help more people get solar in the future. During each phase of getting solar, David was in touch with me constantly via text on my phone. I was also in touch with John Black (owner), Melia (permits), and David via email. All of their estimates for the time frame for permits, construction, and APS were pretty spot on. They had to cut into the wall in my daughter's room and garage to help hide the power conduits and it's very professional. The drywall people patched it up like it never happened and we just happened to have painted my daughter's room recently as part of a kitchen remodel (using the same painters). A few coats of left over paint and we can't even tell anything happened. I highly recommend Black Platinum if you are considering going solar and I have given their information to a few of my neighbors who are thinking about it for themselves.
Read more
Latest review
Howard Jow, 3 weeks ago
We started taking bids for solar earlier in 2021. Some companies only wanted to push an expensive lease option that would have cost us more than $60000 out of pocket by the end of the lease! Sure, they take care of all maintenance and repairs, but when you do a little bit more research you can find that reputable companies have 25 year warranties on their products. Luckily, I started reading about microinverters and decided that I wanted an Enphase microinverter instead of a string inverter. From there, I searched Enphase's website for an installer in my zip code and Black Platinum showed up as a "platinum" level installer. At the time, the next one listed had a "gold" status. We got a quote for $38000 for 13.3kW with LG Panels and Enphase microinverters. The payoff at the time was ten years, but recently Arizona is pushing APS to cut the off peak time from 3pm to 8pm to 4pm to 7pm and they are forcing them to stop charging people with solar for a grid connection fee. These changes will definitely shorten our payoff time a little. Black Platinum had us make the payments in four phases which worked out for us to help space out the large checks. The first phase involves getting city permits, the second phase is installation, and the last phase is APS approving the install and giving you the go ahead to flip the switch and turn on the system. We opted for no battery in our system since our solar buyback rate is locked for ten years. After ten years, I'm anticipating battery technology to be much more superior along with the Enphase technology for being able to go "off grid" while still being connected to the grid in the event of a power outage. After the install, we had a few hiccups that either we solved or Black Platinum solved: 1. One of the trees that the previous owners planted was shading my roof and blocking sun to three of my panels. I had my landscaper trim the tree down beneath the roof line on my house. He still needs to work with my neighbor to trim the same tree on my neighbor's side. The three panels are probably running at about 60% right now (up from 16% when they were shaded). 2. Three panels did not have power after the system was turned on. Two of them weren't plugged in correctly and the third needed a new microinverter. I coordinated with David (Sales Manager) to get the repair team to my home to fix these three panels. I love the Enphase Enlighten app for my Android phone. It shows your energy use so you know when you are doing things during peak energy charges. It helped us realize that if we shower between 3pm and 8pm it uses 5kW just to refill the water heater. Now we shower outside of that window given that our APS bill is negative at the moment (it could be even more negative). The way our system is designed we are expecting to get money back during the cooler months and we're expecting to pay some money during the four hot months in the summer. It should balance itself out. We are looking forward to getting the rebate next year and hope that the solar tax credit is extended to help more people get solar in the future. During each phase of getting solar, David was in touch with me constantly via text on my phone. I was also in touch with John Black (owner), Melia (permits), and David via email. All of their estimates for the time frame for permits, construction, and APS were pretty spot on. They had to cut into the wall in my daughter's room and garage to help hide the power conduits and it's very professional. The drywall people patched it up like it never happened and we just happened to have painted my daughter's room recently as part of a kitchen remodel (using the same painters). A few coats of left over paint and we can't even tell anything happened. I highly recommend Black Platinum if you are considering going solar and I have given their information to a few of my neighbors who are thinking about it for themselves.
4.79 114 Reviews
Latest review
Gabe, over 1 month
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, over 1 month
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.
4.76 114 Reviews
Latest review
Jestin, 1 week ago
I called at least 20 different companies to get estimates. Sunny Energy wasn't the cheapest but I knew they were the right choice. To help me make my decision they did bring their price down. I would recommend this company to anyone. My system is out performing their estimates every day. I love it and Love Sunny Energy.
Read more
Average cost (5kW system)
$13,750 ($2.75 per watt)
Latest review
Jestin, 1 week ago
I called at least 20 different companies to get estimates. Sunny Energy wasn't the cheapest but I knew they were the right choice. To help me make my decision they did bring their price down. I would recommend this company to anyone. My system is out performing their estimates every day. I love it and Love Sunny Energy.
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.
Read more
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.
4.67 69 Reviews
Latest review
bahaway, 3 weeks ago
From the start Michelle asked the right questions and from those questions came up with an estimate to not only meet our needs but made suggestions to improve our systems. No high pressuring, no badgering and only honest quotes with no hidden costs. The project manager Dannielle was on top of the project from day 1 and if needed was quickly on the phone with me if something was not going as schedule. She coordinated with all of the contractors and keep me in the loop as the solar system was being installed. I would highly recommend Rooftop Solar to anyone and have recommended them to all of my neighbors. 7 months later I contacted Michelle for some questions and she responded immediately with answer to my concerns.
Read more
Latest review
bahaway, 3 weeks ago
From the start Michelle asked the right questions and from those questions came up with an estimate to not only meet our needs but made suggestions to improve our systems. No high pressuring, no badgering and only honest quotes with no hidden costs. The project manager Dannielle was on top of the project from day 1 and if needed was quickly on the phone with me if something was not going as schedule. She coordinated with all of the contractors and keep me in the loop as the solar system was being installed. I would highly recommend Rooftop Solar to anyone and have recommended them to all of my neighbors. 7 months later I contacted Michelle for some questions and she responded immediately with answer to my concerns.
4.63 1,530 Reviews
Latest review
Wayne, 2 days ago
Up to tis point I am very satisfied with all aspects of Blue Raven Solar the salesman was very knowledgeable about the product he was selling and the installing crew was very professional about takin care of my property and informing me about all aspects of the installation. Both were excellent at informing me what was the next step toward being energy efficient on my own.
Read more
Latest review
Wayne, 2 days ago
Up to tis point I am very satisfied with all aspects of Blue Raven Solar the salesman was very knowledgeable about the product he was selling and the installing crew was very professional about takin care of my property and informing me about all aspects of the installation. Both were excellent at informing me what was the next step toward being energy efficient on my own.
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)
Read more
Latest review
Timothy & Janice Carlton, over 1 month
(no comments provided)
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