Arizona Solar Incentives (2026)
Arizona homeowners qualify for the 30% federal solar tax credit plus a 25% state tax credit and a $1,000 state rebate. Net metering policy: Full Net Metering. Average payback period: 6.8 years.
30%
Federal ITC
25%
State Tax Credit
$1,000
State Rebate
Full Net Metering
Net Metering
Federal Solar Incentives (Available in Arizona)
Federal Solar Investment Tax Credit (ITC)
Tax Credit30% of system cost
The federal ITC allows homeowners to deduct 30% of solar installation costs from federal taxes. Available for systems installed through 2032, stepping down to 26% in 2033 and 22% in 2034.
Expires: 2034-12-31
Arizona-Specific Solar Incentives
Arizona Net Metering
Net MeteringRetail rate credit
Arizona utilities offer net metering that credits solar owners at retail electricity rates for excess generation.
Arizona Residential Solar Tax Credit
Tax Credit25% up to $1,000
Arizona offers a personal income tax credit of 25% of the cost of a solar energy device, up to $1,000.
Arizona Solar Overview
Peak Sun Hours
6.5 hrs/day
Avg Payback Period
6.8 years
20-Year Savings
$42,500
Electricity Rate
14.78¢/kWh
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Data verified March 2026 · Source: DSIRE, NREL, EIA