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Arizona – Solar Incentives & Resources

Arizona – Solar Incentives & Resources

Save money by installing solar panels in Arizona.

Frequently Asked Questions

What incentives are available for residential solar?

Homeowners do have access to 26% Federal Investment Tax Credit (ITC).
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Does AZ offer a state tax credit?

Yes. The State of Arizona offers residents that install solar PV a credit on their state income taxes worth 25% of the total system cost up to a maximum credit of $1,000. Tax forms can be found here.
solar tax credits
property tax

Does AZ offer a solar sales or property tax exemption?

Arizona offers both a property and sales tax exemption. This exempts homeowners that install solar from acquiring increased state tax liability due to an increase in home value from a solar installation and also can limit potential soft costs associated with solar sales tax.

Does AZ offer a rebate?

There is not a solar specific-rebate in Arizona Public Service (APS) or Salt River Project (SRP) utility territories at this time. SRP is offering an energy storage incentive at this time, but the program is set to expire on April 30th, 2021.
solar rebate
Do any utilities in Arizona offer 1:1 net metering?
Neither Arizona Public Service (APS) or Salt River Project (SRP) offer a traditional 1:1 net metering program, however, both utilities do credit customers for their net excess solar generation.

Does AZ have a Solar Renewable Energy Credit (SREC) market?

Arizona does have a renewable portfolio standard that includes solar, but due to the current incentive structure, there is not a variable SREC market.

Solar Panel Cost in Arizona

Average solar panel cost by system size in Arizona

solar panel cost arizona

Average payback period, savings, and cost of a 5 kW system

The number of years to recover your solar energy investment. (for a 5 kW System)

7.04 Years

20-year savings comparing total cost vs. utility cost for the same amount of electricity, including all costs, incentives, and inflation. (for a 5 kW system)

$42,853

The price of the system on a per-Watt basis. (for a 5 kW system)

$2.60

Arizona Solar Incentives & Rebates

Homeowners in Arizona have access to:

  • 26% Federal Tax Credit
  • State Tax Credit up to $1,000
  • Exemption from increased Property Tax due to solar
  • 100% Solar Sales Tax Exemption
  • 1:1 Net Metering (partial)
solar financing

Arizona Electric Utilities

Check with your local utility company for:

  • Incentive Programs
  • Net Metering Policy
  • Maximum System Size
  • Maximum Power Offset
  • Other Requirements

Dean Solar - Arizona

Arizona Solar
The City of Tucson at dawn.
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Arizona - USA

Eligibility & Redemption

Solar incentives apply to eligible residential customers. 

Incentive programs are offered and administered by government agencies. 

Eligibility and availability vary and are outside of Dean Solar’s control. 

Most programs are limited to a total dollar amount that can be dispersed or will expire on a certain date. 

Be sure to visit the program’s website for the most up-to-date information on availability, eligibility, and redemption requirements.

Your eligibility for income tax credits depends on your personal tax situation. 

Dean Solar recommends speaking with a tax professional for guidance.