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.
4.93 350 Reviews
Ann Waananen, over 1 month
Arizona Solar Wave was very thorough when installing the panels on top of the house. They guided me through the process of getting all the necessary paperwork into the various HOA's and APS. The only problem now is understanding the Enphase Energy System and getting it set up properly. Once this gets set-up, my experience will be 5 stars.
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Ann Waananen, over 1 month
Arizona Solar Wave was very thorough when installing the panels on top of the house. They guided me through the process of getting all the necessary paperwork into the various HOA's and APS. The only problem now is understanding the Enphase Energy System and getting it set up properly. Once this gets set-up, my experience will be 5 stars.
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
4.90 402 Reviews
Jbaus, 3 weeks ago
I am unhappy with the installation and this companies disregard for customer satisfaction. And they know I am and they knew I was before the installation was done and they DO NOT CARE. I was told in the beginning I would not see panels from the front of the house. I caught the problem during the install (I could that I would be able to see panels from the front of the house and from my pool.) They said "let us finish this part and we will come back and fix the issue." Stupid me believed them - they did not. I paid around $80k for the system and I was told it would be around $1,300 to move the offending panels - but I would have to pay the cost. They did not even offer to split the difference with me. Their solution - lay the panels flat (which they and I know makes them less efficient - aka I pay for that in the long run with less production and then requires more cleaning). I pointed out that for a measly 1300 they could have a very happy client. They did (do) not care. So now I have a bunch of flat less efficient panels that I can still see - just not as much. Will I use them for anything ever again - NO! Not even panel cleaning. I used Hot Purple for my first house and I wish I had used them for this one.
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Jbaus, 3 weeks ago
I am unhappy with the installation and this companies disregard for customer satisfaction. And they know I am and they knew I was before the installation was done and they DO NOT CARE. I was told in the beginning I would not see panels from the front of the house. I caught the problem during the install (I could that I would be able to see panels from the front of the house and from my pool.) They said "let us finish this part and we will come back and fix the issue." Stupid me believed them - they did not. I paid around $80k for the system and I was told it would be around $1,300 to move the offending panels - but I would have to pay the cost. They did not even offer to split the difference with me. Their solution - lay the panels flat (which they and I know makes them less efficient - aka I pay for that in the long run with less production and then requires more cleaning). I pointed out that for a measly 1300 they could have a very happy client. They did (do) not care. So now I have a bunch of flat less efficient panels that I can still see - just not as much. Will I use them for anything ever again - NO! Not even panel cleaning. I used Hot Purple for my first house and I wish I had used them for this one.
4.81 176 Reviews
JRH, over 1 month
In reading the one star ratings…I am totally perplexed. Sunny Energy is one of the best contractors I have experienced in a long time. As a licensed general contractor…..I know subs and Sunny is top notch. From the sales cycle to setting expectations, scheduling and installation it was as smooth a process as one can imagine. We were notified of every step along the way from permitting to each step of the install as to what to expect. The techs were top notch and very detail oriented. They worked efficiently and left the site immaculate each time they were out. A big shoutout to the entire Sunny Team! What a great experience.
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Average cost (5kW system)
$13,750 ($2.75 per watt)
JRH, over 1 month
In reading the one star ratings…I am totally perplexed. Sunny Energy is one of the best contractors I have experienced in a long time. As a licensed general contractor…..I know subs and Sunny is top notch. From the sales cycle to setting expectations, scheduling and installation it was as smooth a process as one can imagine. We were notified of every step along the way from permitting to each step of the install as to what to expect. The techs were top notch and very detail oriented. They worked efficiently and left the site immaculate each time they were out. A big shoutout to the entire Sunny Team! What a great experience.
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.
4.69 125 Reviews
Rob B., 1 week ago
Salesperson was honest and educated. Excellent communication during the permitting phase. Installers were personable and did a great job. I'd recommend Sun Valley Solar to friends and family.
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Rob B., 1 week ago
Salesperson was honest and educated. Excellent communication during the permitting phase. Installers were personable and did a great job. I'd recommend Sun Valley Solar to friends and family.
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 23 Reviews
Fred , 17 hours ago
I have been very happy with Lumex from the sales reps to the installers. The system is working very well and I am happy to recommend Lumex.
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Fred , 17 hours ago
I have been very happy with Lumex from the sales reps to the installers. The system is working very well and I am happy to recommend Lumex.
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.
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