Solar Incentives in Arizona (2026)
Every solar system in Arizona qualifies for the 30% federal Residential Clean Energy Credit, a dollar-for-dollar reduction in your federal taxes worth about $5,700 on a typical system. Arizona layers additional state and utility incentives on top, and its net-metering rules determine how much your panels save once they're running.
Federal tax credit
The federal credit covers 30% of the total installed cost — panels, inverter, labor, permitting, and battery storage included — with no cap. It applies the year your system is placed in service and can carry forward if it exceeds your tax liability. (This is a tax credit, not a refund; consult a tax professional.)
Arizona state & utility incentives
| Incentive | What it offers |
|---|---|
| State solar tax credit | 25% of system cost, up to $1,000, against Arizona income tax. |
| Sales tax exemption | Solar equipment is exempt from state sales tax. |
| Property tax exemption | The added value from solar is exempt from property tax. |
Net metering in Arizona
Net billing — exports credited at an avoided-cost rate set by your utility (typically below retail), so self-consumption and batteries add value.
See solar panel costs near you
Compare local solar prices by city, then stack these Arizona incentives on top.
Solar panel cost by city →Frequently asked questions
- What solar incentives are available in Arizona?
- Every Arizona system qualifies for the 30% federal Residential Clean Energy Credit. On top of that, Arizona offers State solar tax credit, Sales tax exemption, Property tax exemption.
- How much is the federal solar tax credit in Arizona?
- The federal credit is 30% of the installed system cost. On a typical $19,000 Arizona system that's about $5,700, bringing the net cost to roughly $13,300.
- Does Arizona have net metering?
- Net billing — exports credited at an avoided-cost rate set by your utility (typically below retail), so self-consumption and batteries add value.
Incentive programs change often — verify current details on DSIRE and with your utility before deciding.