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
115 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.
4.90 216 Reviews
The West Family, over 1 month
We first met Black Platinum Solar in 2009 and after a very lengthy due diligence process decided to choose them to install our Photovoltaic Solar System in 2010. They did a panel expansion for us in 2013 then an inverters upgrade in 2018. Every time we've worked with them we feel so thankful that we found them... which is now 15 years ago. Continued superior customer service. We wouldn't even consider using a different company for any future solar needs.
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The West Family, over 1 month
We first met Black Platinum Solar in 2009 and after a very lengthy due diligence process decided to choose them to install our Photovoltaic Solar System in 2010. They did a panel expansion for us in 2013 then an inverters upgrade in 2018. Every time we've worked with them we feel so thankful that we found them... which is now 15 years ago. Continued superior customer service. We wouldn't even consider using a different company for any future solar needs.
4.90 402 Reviews
Jbaus, over 1 month
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, over 1 month
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.
4.78 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., over 1 month
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., over 1 month
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.
4.67 179 Reviews
LS, 1 week ago
This company is the worst to get in contact with . I purchase a home with their Solar System. I emailed them a copy of new deed and owner info . We are trying to get the system online and on our phones. THEY WILL NOT RETURN CALLS OR ANSWER ANY EMAILS . THEY SHOULD BE ASHAMED OF THEMSELVES. WE KNOW NOTHING ABOUT THE SYSTEM . WE CANT GET INFO. ALSO THEY FILED CHAPTER 11 BANKRUPCY
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Average cost (5kW system)
$13,750 ($2.75 per watt)
LS, 1 week ago
This company is the worst to get in contact with . I purchase a home with their Solar System. I emailed them a copy of new deed and owner info . We are trying to get the system online and on our phones. THEY WILL NOT RETURN CALLS OR ANSWER ANY EMAILS . THEY SHOULD BE ASHAMED OF THEMSELVES. WE KNOW NOTHING ABOUT THE SYSTEM . WE CANT GET INFO. ALSO THEY FILED CHAPTER 11 BANKRUPCY
4.62 60 Reviews
Anita C, 3 weeks ago
Verde Solar Power gets a AAAAA+ rating for going above and beyond in helping me; a retired senior with my portable solar system hookup. I purchased two portable generators and solar panels, but had problems with hooking it up. After going to another Solar company in town for help, I was quickly dismissed and told they couldn’t assist. I inquired at Verde Solar Power and they scheduled an appointment for me to come in and meet with Caleb, Matt and Ryan. The three of them studied my systems and quickly determined that I was missing two cable connections. Caleb was able to configure and make adjustments to one cable but the other one was proprietary and could only be obtained from the manufacturer. Fortunately, with Caleb’s ingenuity and handy work he was able to make one system ready to use and the other one ready to use upon replacement of the missing proprietary cable! Verde Solar Power helped me out of the goodness of their hearts with no charge! They are a company who truly values their community and neighbors. Kudos to Dean and his crew Caleb, Matt, Ryan and Tracey for their helpfulness and kindness!
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Average cost (5kW system)
$10,250 ($2.05 per watt)
Anita C, 3 weeks ago
Verde Solar Power gets a AAAAA+ rating for going above and beyond in helping me; a retired senior with my portable solar system hookup. I purchased two portable generators and solar panels, but had problems with hooking it up. After going to another Solar company in town for help, I was quickly dismissed and told they couldn’t assist. I inquired at Verde Solar Power and they scheduled an appointment for me to come in and meet with Caleb, Matt and Ryan. The three of them studied my systems and quickly determined that I was missing two cable connections. Caleb was able to configure and make adjustments to one cable but the other one was proprietary and could only be obtained from the manufacturer. Fortunately, with Caleb’s ingenuity and handy work he was able to make one system ready to use and the other one ready to use upon replacement of the missing proprietary cable! Verde Solar Power helped me out of the goodness of their hearts with no charge! They are a company who truly values their community and neighbors. Kudos to Dean and his crew Caleb, Matt, Ryan and Tracey for their helpfulness and kindness!
4.61 76 Reviews
Liz, over 1 month
Dave is a professional. He is not only very knowledgeable about solar, but is an excellent communicator, honest and has a team of very hard working individuals. They are thorough, and respectful of your property. Dave returns emails and phone calls in a timely manner. I would highly recommend him. I interviewed several companies, and his company was by far the best.
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Liz, over 1 month
Dave is a professional. He is not only very knowledgeable about solar, but is an excellent communicator, honest and has a team of very hard working individuals. They are thorough, and respectful of your property. Dave returns emails and phone calls in a timely manner. I would highly recommend him. I interviewed several companies, and his company was by far the best.
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