Federal ITC 26% (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. 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.
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
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.
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.
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.
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.
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.
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.
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Prices based on a 8.3kW system, after 26% federal tax credit
110 solar companies in Arizona provide pricing on SolarReviews. Here are the best rated companies near you.
4.95 305 Reviews
John White, over 1 month
From start to finish there were no surprises. Brad and Jesse keep us up to date on the status of every step of the process which made our experience hassle free. Brad the operation manager coordinated everything and was on top of all the details of the process. Brad's communication went above and beyond expectations. Jesse and his install crew were professional, on time and and took the time to answer all my questions. We turned on our solar system 2 days ago and we have already generated 117 kWh! We could not be happier. I highly recommend Arizona Solar and Energy for their exceptional service. They are definitely a 5 star company. You will not be disappointed!
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John White, over 1 month
From start to finish there were no surprises. Brad and Jesse keep us up to date on the status of every step of the process which made our experience hassle free. Brad the operation manager coordinated everything and was on top of all the details of the process. Brad's communication went above and beyond expectations. Jesse and his install crew were professional, on time and and took the time to answer all my questions. We turned on our solar system 2 days ago and we have already generated 117 kWh! We could not be happier. I highly recommend Arizona Solar and Energy for their exceptional service. They are definitely a 5 star company. You will not be disappointed!
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.
4.80 134 Reviews
Taniya Hamidi , 1 week ago
Update- We have had Solar Energy Panels installed through Sunny in 2021 and it May 2022 and we love paying no electricity bills so far
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Average cost (5kW system)
$13,750 ($2.75 per watt)
Taniya Hamidi , 1 week ago
Update- We have had Solar Energy Panels installed through Sunny in 2021 and it May 2022 and we love paying no electricity bills so far
4.80 118 Reviews
Jeanette, over 1 month
There were a lot of steps in this process and each Sun Valley Solar representative (Bobby, Chris, Bill) I worked with was punctual, explained each step, and made sure they answered all my questions (even when I asked multiple times!). My coordinator, Misty, was exceptionally helpful and kept me informed of all steps and worked through several APS schedule challenges with a much appreciated sense of humor (I rated "On Schedule" a three out of five but this was entirely due to APS requirement changes after system installation). If you are thinking about installing a solar system, this is the company you want to partner with!
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Jeanette, over 1 month
There were a lot of steps in this process and each Sun Valley Solar representative (Bobby, Chris, Bill) I worked with was punctual, explained each step, and made sure they answered all my questions (even when I asked multiple times!). My coordinator, Misty, was exceptionally helpful and kept me informed of all steps and worked through several APS schedule challenges with a much appreciated sense of humor (I rated "On Schedule" a three out of five but this was entirely due to APS requirement changes after system installation). If you are thinking about installing a solar system, this is the company you want to partner with!
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.
4.67 71 Reviews
Renewable P, over 1 month
From the appointment to installation Rooftop Solar was great. They were very informative and everyone was great. I felt like a real person even when I asked questions. And I asked a LOT! Love my new solar system!! Thanks Rooftop Solar!
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Renewable P, over 1 month
From the appointment to installation Rooftop Solar was great. They were very informative and everyone was great. I felt like a real person even when I asked questions. And I asked a LOT! Love my new solar system!! Thanks Rooftop Solar!
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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