Arizona Solar Guide 2026
Everything Arizona homeowners need to know: costs, incentives, net metering policy, and what makes this state unique for solar.
Quick answer
Arizona solar economics depend mainly on 6.2 average peak sun hours, an estimated $2.65/W installed cost, 13.0¢/kWh electricity, and the state's current net-metering rules.
Reviewed 2026-07-26
- Best for
- Arizona homeowners comparing solar costs, incentives, and payback assumptions.
- Inputs needed
- annual kWh usage, utility rate, installed $/W, net-metering policy
- Formula used
- Typical production = system kW × peak sun hours × 365.
- Source checked
- state incentive data, utility tariff checks, Wattcrunch price benchmarks
Key fact about Arizona solar
Arizona has the best solar resources in the continental US (6.2+ peak sun hours), but the shift away from full retail net metering has made batteries increasingly important to capture full value.
Peak sun hours
6.2
hrs/day avg
Avg electricity rate
13.0¢
per kWh
Median install cost
$2.65/W
before incentives
Typical payback
9 yrs
8 kW system, avg usage
Typical 8 kW system in Arizona
Annual production
18,104 kWh
Year-1 savings
$2,354
System cost (est.)
$21,200
No federal tax credit — Section 25D expired December 31, 2025.
Arizona Net Metering Policy
Net billing (export at lower than retail)
APS and other Arizona utilities shifted from full retail net metering to net billing arrangements. Exported solar is credited at 60–80% of retail. TOU rates are common — battery pairing is increasingly important.
Arizona Solar Incentives
Available in addition to any utility rebates. Federal 25D credit is $0 for homeowner-owned systems from 2026.
- ✓State income tax credit (25%, up to $1,000)
- ✓Sales tax exemption
- ✓Property tax exemption
Top Utilities in Arizona
Interconnection timeline: 3–7 weeks
State-specific decision guide
What to verify before signing a Arizona solar quote
In Arizona, the financial result depends on more than sunshine or the headline installation price. Confirm the export rule, program eligibility date, and interconnection timeline for your exact utility before treating a payback estimate as a promise.
Export value
This page models net billing (export at lower than retail). Ask which tariff and export credit apply to your account, not only which program name appears in the proposal.
Incentive eligibility
Check equipment, income, installer, application, and placed-in-service rules before subtracting an incentive from the quote. Programs can close or change terms.
Interconnection
Budget for the published 3–7 weeks and confirm who pays for a required meter, service upgrade, or engineering review.
Source trail: production assumptions use NREL PVWatts; incentive discovery should be checked against DSIRE; electricity-market context is available from the EIA. Confirm final tax treatment with the IRS and your utility.
Calculate your Arizona solar economics
Our calculators are pre-filled with Arizona data. Run any tool below.