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. Just 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.
A lot of the incentives that used to be available to Arizonians have since expired. But, there are still enough incentive programs left that can potentially save you thousands of dollars on a solar installation - and thousands of dollars on your electricity bills.
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.
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 in general, the excess generation credit rate is only about $0.03 cheaper than the full retail rate. You can read more details about exactly how net billing works and what your utility company offers solar homeowners here.
Arizona doesn't have as many solar incentives as it used to, mostly because utilities have started meeting their renewable portfolio standard goals. But don’t worry, 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 26% 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
112 solar companies in Arizona provide pricing on SolarReviews. Here are the best rated companies near you.
4.95 320 Reviews
CynthiaW, 4 days ago
Arizona Solar Wave did a great job, they were helpful with sever steps before my panel installation. They coordinated my new roof installation and my electrical panel upgraded!!
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CynthiaW, 4 days ago
Arizona Solar Wave did a great job, they were helpful with sever steps before my panel installation. They coordinated my new roof installation and my electrical panel upgraded!!
4.92 211 Reviews
Jim Lee, over 1 month
Our solar purchase and installation with Black Platinum Solar was more than exceptional! The information provided during the sales presentation was easy to understand for a novice on solar panel energy and with no sales pitch pressure. The installation was completed as scheduled with a very good crew who kept the work area impeccably clean during and after the installation. Once signing the contract, we had nothing else to do as Black Platinum coordinated the required meetings with the City of Scottsdale and Arizona Public Service. We were kept informed of those meetings as well as installation progress. We have no regrets and only the highest of praise for Black Platinum Solar and recommend them to our neighbors and friends interested in solar panel energy.
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Jim Lee, over 1 month
Our solar purchase and installation with Black Platinum Solar was more than exceptional! The information provided during the sales presentation was easy to understand for a novice on solar panel energy and with no sales pitch pressure. The installation was completed as scheduled with a very good crew who kept the work area impeccably clean during and after the installation. Once signing the contract, we had nothing else to do as Black Platinum coordinated the required meetings with the City of Scottsdale and Arizona Public Service. We were kept informed of those meetings as well as installation progress. We have no regrets and only the highest of praise for Black Platinum Solar and recommend them to our neighbors and friends interested in solar panel energy.
4.80 150 Reviews
Alex, 4 days ago
Sunny Energy LLC is the absolute best solar company out there! From their sales team, Sean Turgeon, to the installation team, inspection team, design team, to the account management team, overseen by Michael McCaffrey, everyone is absolutely amazing and goes above and beyond to help ensure all questions are answered and that you're aware of every step taking place. I was totally against solar, and now am reaping the benefits of earning monthly APS credits. Please give this company a chance to provide a consult for you and I promise you won't regret it.
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Average cost (5kW system)
$13,750 ($2.75 per watt)
Alex, 4 days ago
Sunny Energy LLC is the absolute best solar company out there! From their sales team, Sean Turgeon, to the installation team, inspection team, design team, to the account management team, overseen by Michael McCaffrey, everyone is absolutely amazing and goes above and beyond to help ensure all questions are answered and that you're aware of every step taking place. I was totally against solar, and now am reaping the benefits of earning monthly APS credits. Please give this company a chance to provide a consult for you and I promise you won't regret it.
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.
4.75 121 Reviews
Keith C, over 1 month
My experience with Sun Valley Solar (SVSS) was superb. I found the sales (Mark), project management (Adrianne), installation (Fernando), and final acceptance (Bill) personnel all competent and very customer friendly. Only negative for me (not fault of SVSS) was waiting 2 weeks after install for APS meter installation. I highly recommend SVSS for anyone considering residential rooftop solar.
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Keith C, over 1 month
My experience with Sun Valley Solar (SVSS) was superb. I found the sales (Mark), project management (Adrianne), installation (Fernando), and final acceptance (Bill) personnel all competent and very customer friendly. Only negative for me (not fault of SVSS) was waiting 2 weeks after install for APS meter installation. I highly recommend SVSS for anyone considering residential rooftop solar.
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.
4.63 26 Reviews
Parker Williams, over 1 month
Great experience with the guys at FOR Energy getting my Solar system installed. Haven't paid the city for electricity in 3 months and building up a nice little stock pile of credits for the hot summer months. Thanks!
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Parker Williams, over 1 month
Great experience with the guys at FOR Energy getting my Solar system installed. Haven't paid the city for electricity in 3 months and building up a nice little stock pile of credits for the hot summer months. Thanks!
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)
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