Complete Guide to Solar Energy in Arizona

Your complete resource for solar energy. Everything you need to know about solar laws, solar costs, solar financing, and solar installation in Arizona.

$2.77
Cost per Watt (2025)
6-8 years
Average Payback Period
300+
Sunny Days Per Year
$1,000
Arizona Solar Tax Credit

Why Arizona is Perfect for Solar Energy

Exceptional Sunshine

Arizona receives over 300 sunny days per year and ranks #1 nationally for solar radiation, providing the most optimal conditions in the United States for solar energy generation year-round.

High Electricity Rates

With peak rates reaching $0.15-$0.22/kWh from major utilities (APS, SRP, TEP), solar provides substantial savings on monthly utility bills, with rates expected to increase 2-14% through 2026.

Strong Financial Incentives

Arizona offers 25% state credit up to $1,000 of installation cost as well as property tax exemption.

Robust Legal Protections

Arizona law (A.R.S. § 33-1816) protects homeowners’ rights to install solar systems. HOAs cannot prohibit solar installations and restrictions must not reduce efficiency by more than 10% or add over $1,000 in costs.

Quick Solar Facts

Average System Size: 6-7 kW
Annual Generation: 9,500-11,500 kWh
Arizona Solar Tax Credit: Up to $1,000
Typical Payback: 6-8 years
System Lifespan: 25-30 years

Quick Solar Savings Calculator

Important 2026 Updates

Federal ITC Expired

The 30% federal Investment Tax Credit expired on December 31, 2025. Systems installed after this date no longer qualify for the incentive.
Learn about federal incentives →

Net Billing Rate Reductions

Arizona utilities continue reducing export compensation rates. As of September 2025: APS (6.17¢/kWh), TEP (5.70¢/kWh), SRP (6.80¢/kWh) – 60-70% below retail rates, making battery storage essential.
Understand net billing policy →

Arizona Solar Laws & Regulations

Arizona Solar Tax Credit

State incentives offer up to $1,000 off installation costs, directly lowering upfront expenses
Learn More →

Solar Rights Act

Arizona Revised Statutes § 33-1816 protects homeowners’ rights to install solar energy devices. HOAs cannot prohibit installations and must allow reasonable solar access.
Learn More →

State Tax Credit

Arizona offers 25% of solar system costs or $1,000 maximum (whichever is less) as a personal income tax credit for system owners using Arizona Form 310.
Learn More →