Solar in Arizona
Here's what generally applies to solar in Arizona. This page is educational: Power Done Better installs in Southwest Florida, so for Arizona we can point you toward what applies and, where we can, refer you to a trusted local pro.
What you get for exported power
Policy type: Net billing (below-retail export credit) — varies by utility.
Full-retail net metering ended by the AZ Corporation Commission's Value-of-Solar case (Decision No. 75859, 2016/2017). New systems get net billing under the Resource Comparison Proxy (RCP) export rate, locked 10 years, decreasing up to 10%/yr for new enrollees. APS export ~$0.06171/kWh; TEP ~$0.057/kWh (vs. ~$0.15 retail). SRP (municipal, not ACC-regulated) retired net metering Nov 2025 → TOU net billing.
- Typical export credit
- ~$0.057–0.062/kWh (vs. ~$0.15 retail)
- Rate lock
- 10 years
- Varies by utility
- Yes
Programs on the table
Program terms and budgets change — treat these as a starting point and confirm current status.
Arizona Residential Solar Energy Tax Credit
activeState income tax credit for residential solar — one of the few real state credits. Confirm current cap against AZ DOR before quoting.
- Amount: 25% of cost, up to $1,000
Solar Property Tax Exemption
activeAdded solar value exempt from property tax.
Solar Equipment Sales Tax Exemption
activeSolar equipment exempt from transaction privilege (sales) tax in many jurisdictions.
Credits & exemptions
State solar tax credit
YesArizona offers a residential solar energy tax credit (25% of cost, up to $1,000) — one of the few states with a real state credit. Confirm current cap against AZ DOR before quoting.
Property tax exemption
YesAdded solar value exempt from property tax.
Sales tax exemption
YesSolar equipment exempt from transaction privilege (sales) tax in many jurisdictions.
SREC market
NoneNo meaningful residential SREC market.
Who most homeowners have here
Your exact terms depend on your utility — this is the shortlist most visitors fall under.
- Arizona Public Service (APS)
- Tucson Electric Power (TEP)
- Salt River Project (SRP, municipal)
What this means for you
Arizona swapped full net metering for net billing — your exported power is credited well below retail (~6¢ vs ~15¢), locked for 10 years, so self-use and batteries matter. But Arizona is one of the few states with a real state tax credit (25%, up to $1,000) plus property- and sales-tax exemptions.
Read this the right way
Rules, rates, and incentives change and vary by utility — confirm current terms with your utility and a licensed installer before deciding. Any figures shown here are cited educational estimates, not a quote, and not a guarantee of savings or eligibility. Nationwide in 2026: the federal residential solar tax credit (IRC Section 25D, the 30% ITC) expired 12/31/2025, so a cash or loan purchase placed in service in 2026 gets $0 federal residential credit — there is no 2026 residential credit. Lease/PPA (third-party-owned) systems may still access the business credit (Section 48E) through 2027. This is general information, not tax, legal, or financial advice. Sources are listed below, last verified 2026-08-17.
Sources
- Solar United Neighbors — Net metering in Arizona — Solar United Neighbors (secondary, verified 2026-08-17)
- SolarTopps — APS Buyback Rates 2026 — SolarTopps (secondary, verified 2026-08-17)
- DSIRE — Arizona programs — DSIRE (NC Clean Energy Technology Center) (primary, verified 2026-08-17)
We install in Southwest Florida
We don't install in Arizona, so we won't pretend to be your local expert. If you're in Arizona, use the sources on this page to check your utility and DSIRE — and if you want, we can point you toward a trusted local pro.