Arizona Solar Rebates, Tax Credits & Incentives (2026)

Complete guide to solar incentives in Arizona. See how much you can save with the federal tax credit, state programs, utility rebates, and local incentives.

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$13,000 Avg. System Cost (8 kW)
$4,850 Net Cost After Incentives
2 yrs Break-Even Timeline
$44,498 20-Year Savings
6.5 hrs Peak Sun Hours/Day
$0.13/kWh Avg. Electricity Rate

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Solar Incentives Available in Arizona

Here is a breakdown of every solar incentive available to Arizona homeowners, from federal tax credits to state-specific programs.

IncentiveValueDetails
Federal ITC (30%)$3,900Tax credit on federal return
State Tax Credit (25%)$3,250State income tax credit
State Rebate$1,000Direct rebate from state program
Property Tax ExemptionYesSolar adds value without raising property taxes
Net MeteringpartialCredit for excess solar energy exported
Additional Programs: Arizona Residential Solar Tax Credit up to $1,000. SRP offers EarthWise Solar incentives.

Explore Solar Financing for Arizona

$0 down options available. Own your system and claim the 30% federal tax credit. Save up to $2,467/year.

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ROI Analysis: Solar Investment in Arizona

Based on a 8 kW system at $13,000 with 6.5 peak sun hours per day and electricity at $0.13/kWh.

System Cost 13000
Federal ITC Savings 3900
State Incentives 4250
Year 1 Electric Savings 2467
20-Year Net Savings 44498

Annual Energy Production: 18,980 kWh

Annual Electric Bill Savings: $2,467

Total Incentive Savings: $8,150

Net System Cost: $4,850

Break-Even: ~2 years

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⚠ The 30% federal solar tax credit is available through 2032. It drops to 26% in 2033. Lock in maximum savings in Arizona now.

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Best Solar Options in Arizona

ProviderTypeHighlightRatingAction
EnergySageMarketplaceCompare local Arizona installers4.8/5Get Quotes
SunrunInstaller$0 down solar in Arizona4.5/5View Plans
SunPowerPremiumTop efficiency panels4.6/5Get Quote

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Frequently Asked Questions

Homeowners in Arizona can claim the 30% federal ITC, a 25% state tax credit, a $1,000 state rebate. Net metering status: partial.
The average solar installation in Arizona costs approximately $13,000 for a 8 kW system before incentives. After the federal tax credit and state incentives, the net cost is approximately $4,850.
Based on average electricity rates of $0.13/kWh and 6.5 peak sun hours per day, a solar system in Arizona typically pays for itself in approximately 2 years.
Net metering in Arizona is currently classified as "partial". This affects how much credit you receive for excess solar energy exported to the grid. Check with your specific utility for current rates.
Based on our calculations, a typical 8 kW solar system in Arizona can save approximately $44,498 over 20 years, factoring in all available incentives.

SolarSavingsAI Research Team

Solar Energy Analysts

Our team analyzes solar incentive data from federal (DOE, IRS), state (DSIRE), and utility sources to provide accurate savings estimates. Data is reviewed quarterly and cross-referenced with NREL benchmarks.

Sources: DOE, IRS, DSIRE, NREL, EIA Updated: 2026 Full Methodology Editorial Standards

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