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. 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
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.
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.
Showing data for:
Prices based on a 8.3kW system, after 26% federal tax credit
113 solar companies in Arizona provide pricing on SolarReviews. Here are the best rated companies near you.
4.95 310 Reviews
Garth M, 1 week ago
We started this process by going out and getting 3 quotes. I contacted friends in the electrical business to see if they could recommend anyone and in the process of reading reviews and doing my research I realized that there are several different types of companies in the market. Some companies appear to be solar installers (installing packages they are getting from suppliers), and some companies seem to just collect your money and then subcontract the entire project to installers (skimming their fee of the top of course).<br />Arizona Solar Wave is a full-service solar supplier. They design the system, pull the permits, specify and purchase all of the components, coordinate with the inspectors and with the utility company and most importantly warranty the entire installation for 25 years.<br />Brad is the general manager of the company and I actually spoke to him a couple of times during the course of the project (he returns phone calls!) I dealt with Mike starting with a quote and then proceeding thru the contract signing, design and installation phases.<br />I not only got a competitive price on my system, I also got very good financing which made the decision to proceed a "no brainer."<br />Everything went without a hitch. I was guaranteed installation in a certain time frame, but the actual installation went faster than I was promised. Everything was completed within 60 days of when I signed the contract and I'm currently producing power. I'm very impressed by how efficiently the whole project was managed.
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Garth M, 1 week ago
We started this process by going out and getting 3 quotes. I contacted friends in the electrical business to see if they could recommend anyone and in the process of reading reviews and doing my research I realized that there are several different types of companies in the market. Some companies appear to be solar installers (installing packages they are getting from suppliers), and some companies seem to just collect your money and then subcontract the entire project to installers (skimming their fee of the top of course).<br />Arizona Solar Wave is a full-service solar supplier. They design the system, pull the permits, specify and purchase all of the components, coordinate with the inspectors and with the utility company and most importantly warranty the entire installation for 25 years.<br />Brad is the general manager of the company and I actually spoke to him a couple of times during the course of the project (he returns phone calls!) I dealt with Mike starting with a quote and then proceeding thru the contract signing, design and installation phases.<br />I not only got a competitive price on my system, I also got very good financing which made the decision to proceed a "no brainer."<br />Everything went without a hitch. I was guaranteed installation in a certain time frame, but the actual installation went faster than I was promised. Everything was completed within 60 days of when I signed the contract and I'm currently producing power. I'm very impressed by how efficiently the whole project was managed.
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.
4.80 136 Reviews
R.D., 4 days ago
In June of 2022 Sunny energy installed a 10.95kw DC solar system on my house consisting of 30 REC solar panels, 7.6kw Generac inverter, 4 optimizers, and a Generac PWCELL 18kwh Battery for a total cost of over $47 thousand. The system also provides emergency power for 6 critical circuits. All of the wiring conduit, switches, circuit breakers, meter boxes, etc. were included. A phone app and computer web app was provided for monitoring the performance of the system As of this writing, in the summer, the energy I am consuming from the power grid is near zero, and the battery still has 30% to 50% of charge remaining by morning. Winter will be more challenging, but I don’t have that data yet. Sunny Energy, is a real and honorable company. They did what they said they would do with no significant surprises. Their sales engineer was knowledgeable and answered many questions, better than 2 other companies I also considered. Their project management team is well organized and their web tool provided good project tracking. They handled all permits and interface with the electrical utility (APS). The installation team was capable, polite, and fast. Their customer service people were knowledgeable and responsive. I can honestly recommend them. There is a lot to learn and understand about any solar system of this type. It is not as simple as cutting a check and having free power for life. The long term reliability and maintenance costs are yet to be determined. The components of my system are of good quality from honorable suppliers with good warranties, but the future is unknown. The cost of replacing my roof, when it eventually wears out is unknown. The future cost of energy is probably higher, but unknown. For now, my electricity bill is minimal, but not zero. The credit I get from APS for the considerable amount of power I provide to the grid is also minimal, but not zero.
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Average cost (5kW system)
$13,750 ($2.75 per watt)
R.D., 4 days ago
In June of 2022 Sunny energy installed a 10.95kw DC solar system on my house consisting of 30 REC solar panels, 7.6kw Generac inverter, 4 optimizers, and a Generac PWCELL 18kwh Battery for a total cost of over $47 thousand. The system also provides emergency power for 6 critical circuits. All of the wiring conduit, switches, circuit breakers, meter boxes, etc. were included. A phone app and computer web app was provided for monitoring the performance of the system As of this writing, in the summer, the energy I am consuming from the power grid is near zero, and the battery still has 30% to 50% of charge remaining by morning. Winter will be more challenging, but I don’t have that data yet. Sunny Energy, is a real and honorable company. They did what they said they would do with no significant surprises. Their sales engineer was knowledgeable and answered many questions, better than 2 other companies I also considered. Their project management team is well organized and their web tool provided good project tracking. They handled all permits and interface with the electrical utility (APS). The installation team was capable, polite, and fast. Their customer service people were knowledgeable and responsive. I can honestly recommend them. There is a lot to learn and understand about any solar system of this type. It is not as simple as cutting a check and having free power for life. The long term reliability and maintenance costs are yet to be determined. The components of my system are of good quality from honorable suppliers with good warranties, but the future is unknown. The cost of replacing my roof, when it eventually wears out is unknown. The future cost of energy is probably higher, but unknown. For now, my electricity bill is minimal, but not zero. The credit I get from APS for the considerable amount of power I provide to the grid is also minimal, but not zero.
4.80 119 Reviews
Netty, over 1 month
I HIGHLY recommend SVSS for anyone considering a solar installation. SVSS recently installed a 10.08kW system on my roof and is connected to SRP. From start to finish, the team of people I worked with were diligent, knowledgeable, hard-working and just an absolute pleasure to work with. Bobby spent 3 hours educating me on the complex SRP residential price plans and what options made sense with solar. His time was invaluable, and so much easier for me to sort through the other solar estimates that I was getting. As a mechanical engineer, I really appreciated his time and willingness to sort through the details. What was also clear is that SVSS is in it for the long-term. Not all solar companies intend to stay in business beyond the solar rebate period. This became even more clear as I began speaking to representatives from other solar companies. SVSS also has a commercial solar business that will keep them in business beyond the solar rebate period if it does not get extended. All of this made SVSS, the clear choice for me. Adrianne, my project manager, was on top of things from the start. Everything was scheduled quickly and efficiently. Due to it’s age, my roof required preparation prior to the solar installation. I was educated on how to roll that into my solar installation costs for the tax rebate. Alonzo (work-site supervisor) and Adrianne also identified an issue with the roofing preparation work during the installation. They brought it to my attention and the roofing company agreed it was less than ideal and repaired the issue. I would not of know of the issue potentially for years. This is just one example of how thorough and conscientious this team of people are. All of the workers I came in contact with were very knowledgeable and professional during the installation. Bill, the technician who commissioned the system spent nearly 4 hours on-site. He spent a great deal of that time explaining the inverter and demand management system that I would be monitoring. Also, expectations regarding system efficiency and inverter clipping. In addition, I circled back around with Bobby to make sure I understood the system size and how to get the most out of my system. Both super knowledgeable and thorough with their explanations. I’ve always wanted my very own power plant, and the process that I went through with SVSS made it all the more enjoyable. Thank you SVSS! Looking forward to working more with you over the years! 10.08 kW residential solar customer
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Netty, over 1 month
I HIGHLY recommend SVSS for anyone considering a solar installation. SVSS recently installed a 10.08kW system on my roof and is connected to SRP. From start to finish, the team of people I worked with were diligent, knowledgeable, hard-working and just an absolute pleasure to work with. Bobby spent 3 hours educating me on the complex SRP residential price plans and what options made sense with solar. His time was invaluable, and so much easier for me to sort through the other solar estimates that I was getting. As a mechanical engineer, I really appreciated his time and willingness to sort through the details. What was also clear is that SVSS is in it for the long-term. Not all solar companies intend to stay in business beyond the solar rebate period. This became even more clear as I began speaking to representatives from other solar companies. SVSS also has a commercial solar business that will keep them in business beyond the solar rebate period if it does not get extended. All of this made SVSS, the clear choice for me. Adrianne, my project manager, was on top of things from the start. Everything was scheduled quickly and efficiently. Due to it’s age, my roof required preparation prior to the solar installation. I was educated on how to roll that into my solar installation costs for the tax rebate. Alonzo (work-site supervisor) and Adrianne also identified an issue with the roofing preparation work during the installation. They brought it to my attention and the roofing company agreed it was less than ideal and repaired the issue. I would not of know of the issue potentially for years. This is just one example of how thorough and conscientious this team of people are. All of the workers I came in contact with were very knowledgeable and professional during the installation. Bill, the technician who commissioned the system spent nearly 4 hours on-site. He spent a great deal of that time explaining the inverter and demand management system that I would be monitoring. Also, expectations regarding system efficiency and inverter clipping. In addition, I circled back around with Bobby to make sure I understood the system size and how to get the most out of my system. Both super knowledgeable and thorough with their explanations. I’ve always wanted my very own power plant, and the process that I went through with SVSS made it all the more enjoyable. Thank you SVSS! Looking forward to working more with you over the years! 10.08 kW residential solar customer
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 73 Reviews
Glen, 1 week ago
Working with Rooftop Solar was great. They sought to understand my energy needs and designed a system to meet the requirements. With a solid plan, installation was swift and smooth. They coordinated with APS and took care of the connection details. When one panel failed to produce, they promptly replaced it for free. Great staff and friendly experience all around.
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Glen, 1 week ago
Working with Rooftop Solar was great. They sought to understand my energy needs and designed a system to meet the requirements. With a solid plan, installation was swift and smooth. They coordinated with APS and took care of the connection details. When one panel failed to produce, they promptly replaced it for free. Great staff and friendly experience all around.
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)
For more information about going solar near where you live, check out the following resources: