Solar in Arizona
Arizona solar guide covering state incentives, average costs, payback times, and top installers for 2025
Key Solar Facts for Arizona
Free quotes • No high-pressure sales • Local certified installers
Why Arizona is Perfect for Solar
Arizona Solar Advantages
Available Solar Incentives
💰 Available Incentives
Federal Investment Tax Credit (ITC)
FederalAvailable for all residential solar installations through 2032.
Property Tax Exemption
StateSolar installations don't increase property tax assessments in Arizona.
Sales Tax Exemption
StateSolar equipment purchases are exempt from Arizona's sales tax.
Important: Incentives are subject to change. Always verify current rates and availability with your installer and local authorities.
Solar Investment Analysis
📈 Solar Payback Timeline
Great news! After 5.5 years, your solar system will generate pure savings of approximately $1,900/year for the remaining 15+ years of its warranty period.
Additional Information
Solar in Arizona: incentives, costs and payback (2025)
Arizona is one of America's premier solar states, with abundant sunshine, supportive policies, and strong economics that make solar an excellent investment for most homeowners.
Arizona solar incentives
Federal tax credit (30%) The federal solar Investment Tax Credit (ITC) allows you to deduct 30% of your solar installation cost from your federal taxes. This credit is available through 2032.
Arizona state tax credit Arizona offers a state tax credit equal to 25% of the system cost, up to $1,000. This credit can be combined with the federal credit for maximum savings.
Utility rebates Many Arizona utilities offer additional rebates:
- APS: Up to $0.40/watt for solar installations
- SRP: Environmental Portfolio Standard incentives
- TEP: Solar rebate programs for qualified customers
Net metering Arizona requires utilities to offer net metering, allowing you to sell excess power back to the grid at retail rates. This significantly improves your system's economics.
Cost and payback in Arizona
Average installation cost Solar panels in Arizona cost an average of $2.70 per watt before incentives. A typical 6kW system costs:
- Gross cost: $16,200
- After federal tax credit (30%): $11,340
- After state credit ($1,000): $10,340
Payback time With Arizona's high electricity rates (average $0.14/kWh) and excellent sun exposure (6+ hours daily), most solar systems pay for themselves in 6-8 years.
Annual savings A typical 6kW system in Arizona generates about 10,500 kWh annually, saving homeowners $1,470 per year on electricity bills.
Net metering and electricity rates
Arizona's net metering rules are favourable to solar customers:
- Full retail rate credit for excess power exported to the grid
- Monthly netting allows you to carry credits forward
- No limit on system size for residential installations
Average electricity rates in Arizona are $0.14/kWh, making solar savings substantial.
Best solar companies in Arizona
Arizona has many qualified solar installers. We recommend getting quotes from:
- SunPower: Premium panels with industry-leading warranties
- Tesla Solar: Competitive pricing with Powerwall integration
- Sunrun: Comprehensive financing options including leases
Get quotes from at least three installers to compare pricing and proposals.
Next steps
- Calculate your potential savings with our solar calculator
- Get multiple quotes from certified installers
- Check your roof condition and orientation (south-facing is ideal)
- Review financing options including cash, loans, and leases
- Apply for permits (your installer typically handles this)
Arizona's combination of excellent solar resources, supportive policies, and strong economics make it one of the best states to go solar in 2025.
Subpages: cost, incentives, and best companies.