How much can I save with solar in Arizona?

Arizona homeowners typically save $1,200–$1,800 per year on electricity. With 6.5 peak sun hours per day, systems produce significantly more energy than in most states.

Solar panels on residential homes in Arizona — aerial view of neighborhood rooftop solar installations — SunLynk solar companies Arizona

Solar by State›Arizona

#2 Sunniest State

Solar Panels in Arizona

#2 Sunniest State -- Solar Pays Off Fast

$1,500/yr

Avg. Annual Savings

6.5 peak hrs/day

Peak Sun Hours

9–12 years

Payback Period

$13,000–$20,000

Avg. System Cost

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Overview

Is Solar Worth It in Arizona?

Arizona is the second sunniest state in the country, with an average of 6.5 peak sun hours per day. This exceptional solar resource means Arizona homeowners can generate more electricity per panel than almost anywhere else in the nation, resulting in faster payback periods and higher lifetime savings.

Arizona also offers a state income tax credit and strong property and sales tax exemptions that stack on top of the federal incentive.

Benefits

Why Go Solar in Arizona

Reduce Your Electric Bill

Arizona homeowners save an average of $1,500/yr after going solar.

State & Local Incentives

Arizona offers property tax exemptions, net metering credits, and other state-level incentives that reduce your net cost. The federal 30% ITC expired Dec 31, 2025.

Increase Home Value

Solar panels increase your home's resale value — and are excluded from property tax in most states.

Energy Independence

Lock in your electricity rate and protect against rising utility costs for 25+ years.

Available Incentives

Arizona Solar Incentives & Tax Credits

AZ State Solar Tax Credit

Tax Credit

Arizona offers a 25% state income tax credit on the cost of your solar system, up to $1,000. Note: the federal 30% residential solar tax credit (Section 25D) expired December 31, 2025 and is no longer stackable with state credits for 2026 purchases. This state credit now stands on its own.

25% credit (up to $1,000)

Sales Tax Exemption

Tax Exemption

Arizona exempts solar energy equipment from the state's 5.6% sales tax, saving you hundreds on your system purchase.

5.6% sales tax savings

Property Tax Exemption

Tax Exemption

Arizona exempts the added value of solar installations from residential property tax assessments.

100% exemption on added value

Federal Solar Tax Credit (Expired)

Tax Credit

Note: The federal 30% residential solar tax credit (Section 25D) expired December 31, 2025 and is no longer available for new purchases in 2026. Arizona homeowners should focus on the state's 25% income tax credit (up to $1,000), property tax exemption, and net metering programs.

Expired Dec 31, 2025

Common Questions

Arizona Solar FAQ

Arizona Public Service (APS) has moved to a "Resource Comparison Proxy" rate for net metering, which is lower than the old retail rate. However, the exceptional solar resource in Arizona still makes solar highly profitable.

Local Solar Companies

Solar Companies by City in Arizona

Find pre-vetted local solar installers in your city. Compare quotes and start saving.

Tucson$1,400/yr avg savings

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