Export credits: Arizona’s two largest investor-owned utilities credit exported power far below the retail rate: APS at 5.554¢/kWh (Rate Rider RCP, from September 1, 2026) and TEP at 5.13¢/kWh (Rider R-14 RCP, from October 1, 2025), so a home that exports part of its output saves less than the retail rate alone suggests.
What to Compare on a Arizona Solar Quote
We print no modelled system cost, first-year savings or payback for Arizona: the national median price per watt Berkeley Lab publishes is not a local price. The table that stood here showed our own model assumptions and was withdrawn on October 17, 2026. Get at least three itemised quotes and price them against your own bill with our payback calculator; the federal §25D credit expired for 2026 purchases.
Export credits: Arizona’s two largest investor-owned utilities credit exported power far below the retail rate: APS at 5.554¢/kWh (Rate Rider RCP, from September 1, 2026) and TEP at 5.13¢/kWh (Rider R-14 RCP, from October 1, 2025), so a home that exports part of its output saves less than the retail rate alone suggests.
Top Solar Providers in Arizona
| Provider | Notes | Link |
|---|---|---|
| Sunrun | National residential installer; active in Arizona | Visit Site → |
| Tesla Energy | Powerwall battery storage; primarily direct through Tesla.com | Visit Site → |
| SunPower | Residential monocrystalline systems; brand now operated by SunPower Inc. — confirm current warranty and service terms directly | Visit Site → |
| Freedom Forever | Production guarantee included; active in Arizona | Visit Site → |
| Ion Solar | Dealer network; competitive pricing in Arizona | Visit Site → |
| Sun Valley Solar Solutions | AZ-based installer (Chandler, since 2006); residential solar + battery storage | Visit Site → |
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Arizona Law and Requirements
Arizona solar policy: net metering under APS ~75% retail rate; SRP no traditional NEM (flat credit)Installations are subject to local permitting — timelines vary by municipality (typically 1–8 weeks). Arizona incentives: AZ state income tax credit (25% up to $1,000, AZ Form 310) · AZ sales tax exemption on installations · AZ property tax exemption. Federal: The residential Section 25D credit (IRS) expired for purchased systems installed after December 31, 2025; for third-party-owned systems (lease/PPA), installers may claim the 30% commercial credit under Section 48E (for systems placed in service by December 31, 2027) (IRC §48E, IRS) on Form 3468. Verify current incentive availability at. This is general information, not tax advice. DSIRE.
Key Terms
- ITCInvestment Tax Credit — a 30% federal solar tax credit (IRC §48E, for systems placed in service by December 31, 2027) available to installers and owners of third-party-owned systems (such as leases and PPAs) that reduces income tax dollar-for-dollar. Homeowner-purchased systems installed after December 31, 2025 no longer qualify for a federal credit under Section 25D (IRS).
- Net MeteringPolicy allowing solar owners to sell excess electricity to the grid, reducing their utility bill.
- kWpKilowatts-peak — rated maximum output of a solar panel under standard test conditions.
- Payback PeriodYears until savings equal total installation cost.
- NABCEPNorth American Board of Certified Energy Practitioners — gold-standard installer certification.
- Battery StoragePaired lithium-ion battery stores excess solar energy for outages or off-peak use.
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How to Get Solar in Arizona — Step by Step
Audit your electricity usage first
Pull 12 months of utility bills. Solar system sizing is based on annual kWh consumption. Oversizing wastes capital; undersizing means continued utility dependency. Most NABCEP installers provide a free usage analysis.
Get at least 3 quotes from NABCEP-certified installers
Verify installer certification at NABCEP.org. In Arizona, prices can vary 20–40% between installers for the same system. Get itemized quotes showing panel brand, inverter brand, warranty terms, and production estimates.
Understand Arizona net metering terms
Arizona net metering: APS ~75% retail rate; SRP no traditional NEM (flat credit). The compensation rate for exported power directly affects your payback calculation. Ask your installer to model your bill with the actual utility net metering rate — not a generic estimate.
Verify all Arizona incentives before signing
Current Arizona solar incentives: AZ state income tax credit (25% up to $1,000, AZ Form 310) · AZ sales tax exemption on installations · AZ property tax exemption. Note: the federal residential Section 25D credit (IRS) expired for homeowner-purchased systems installed after December 31, 2025 and is not available for a 2026 purchase; third-party owners of leased/PPA systems may claim the 30% Section 48E (IRS) commercial credit (for systems placed in service by December 31, 2027). Check availability at DSIRE — programs open and close throughout the year. Your installer should document every incentive in the contract.
Review production guarantee and warranty terms
Ask for a written production guarantee (kWh/year). Workmanship warranty should cover 10+ years; panel warranty 25 years; inverter 10–25 years. If the system underperforms by more than 10% of guarantee, the installer should remedy at no cost.
Time your tax credit correctly
The 30% federal solar tax credit (IRC §48E, for systems placed in service by December 31, 2027) applies to third-party-owned systems (leases and PPAs) where the installer or owner claims the credit — not to homeowner-purchased systems installed after December 31, 2025, which no longer qualify under Section 25D (IRS). For third-party-owned systems, if the owner's tax liability is less than the credit, the excess carries forward. Consult a CPA if your AZ tax situation is complex — particularly if layering state incentives. This is general information, not tax advice.
Frequently Asked Questions — Arizona Solar
How much does solar cost in Arizona in 2026?
We print no modelled system cost for Arizona: the national median price per watt Berkeley Lab publishes is not a local price, so compare itemised quotes. Note that the federal residential solar tax credit (Section 25D, IRS) expired for homeowner-purchased systems installed after December 31, 2025, so a 2026 purchase no longer qualifies for the 30% federal Investment Tax Credit. Homeowners who instead choose a solar lease or PPA may still benefit indirectly, as installers/owners can claim the 30% commercial credit under Section 48E (IRS) (for systems placed in service by December 31, 2027) and often pass savings through as a lower rate. State and local incentives in Arizona remain unaffected and can reduce costs further: AZ state income tax credit (25% up to $1,000, AZ Form 310). This is general information, not tax advice.
What solar incentives are available in Arizona?
Arizona solar incentives in 2026: AZ state income tax credit (25% up to $1,000, AZ Form 310) · AZ sales tax exemption on installations · AZ property tax exemption. The federal residential Section 25D credit (IRS) expired for homeowner-purchased systems installed after December 31, 2025 and does not apply to a 2026 purchase; however, installers/owners of third-party-owned systems (lease/PPA) may claim the 30% Section 48E (IRS) commercial credit (for systems placed in service by December 31, 2027) nationwide, often passing savings to customers as lower rates. Check current program availability at DSIRE (dsireusa.org) before signing a contract — funding levels change frequently. This is general information, not tax advice.
How does net metering work in Arizona?
Arizona's net metering policy: APS ~75% retail rate; SRP no traditional NEM (flat credit). Net metering credits your electric bill for excess solar energy exported to the grid. The compensation rate significantly affects your payback period — higher retail-rate credits yield faster payback than reduced export rates.
How many peak sun hours does Arizona get?
Sun hours are only one input to solar economics in Arizona: your electricity rate, installed cost and your utility's export credit decide the payback, which our payback calculator models by metro.
What is the payback period for solar in Arizona?
We print no modelled payback for Arizona: your installed price, your usage and your electricity rate (the Arizona average residential rate is published by the EIA, July 2026) decide it, and financing and incentives move it. After payback, the rest of a 25-year system's life is production you no longer pay for.
How do I choose a reputable solar installer in Arizona?
Verify NABCEP certification at nabcep.org/installer-locator. Check BBB ratings, Google reviews, and ask for 3 local references. Get a written production guarantee and confirm warranty terms. Avoid high-pressure sales tactics or installers who won't provide itemized quotes. Pull AZ contractor license verification at https://difi.az.gov.
Is solar worth it in Arizona?
For most homeowners in Arizona, yes — especially given the available state incentives. Note that the federal residential Section 25D credit (IRS) expired for homeowner-purchased systems installed after December 31, 2025, so a 2026 purchase does not qualify for the 30% federal ITC. Homeowners using a solar lease or PPA may still benefit indirectly, as installers can claim the 30% Section 48E (IRS) commercial credit (for systems placed in service by December 31, 2027) and often pass savings through as a lower rate. Key factors: your current electricity rate, roof condition and orientation, available financing, and how long you plan to stay in the home. This is general information, not tax advice.
Can I get solar with no money down in Arizona?
Yes — solar loans (typically 5–20 year terms), solar leases, and power purchase agreements (PPAs) allow Arizona homeowners to go solar with $0 upfront. However, for systems installed in 2026, the federal residential Section 25D credit (IRS) has expired for homeowner-purchased systems, so cash purchases and solar loans no longer qualify for the 30% federal ITC. With leases and PPAs, the installer/owner may claim the 30% commercial credit under Section 48E (IRS) (for systems placed in service by December 31, 2027) and often passes savings through as a lower rate. Your choice of financing should be evaluated carefully given this change — consult a tax professional to understand your specific situation. This is general information, not tax advice.
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