Arizona Solar Guide 2026
Everything Arizona homeowners need to know: costs, incentives, net metering policy, and what makes this state unique for solar.
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
Calculate your Arizona solar economics
Our calculators are pre-filled with Arizona data. Run any tool below.