Tucson · AZ
Solar Companies in
Tucson, AZ
Tucson homeowners pay $13,000–$19,500 for a typical 7 kW solar system in 2026. The federal 30% residential tax credit expired December 31, 2025; Arizona's property tax and sales tax exemptions remain active. At Tucson Electric Power (TEP)'s rate of $0.128/kWh, most systems pay back in 8–13 years.
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6.5 hrs/day
Peak Sun Hours
$1,400/yr
Avg. Annual Savings
8–13 yrs
Payback Period
$13,000–$19,500
Avg. System Cost
2026 update: The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025. Homeowners purchasing systems in 2026 cannot claim it. Solar leases and PPAs are the exception — the installer can still claim commercial credits and pass savings through in the monthly rate. Full 2026 ITC guide →
About Solar in Tucson
Why Tucson Homeowners Are Going Solar in 2026
Tucson is one of the best solar markets in the United States — 6.5 peak sun hours per day, the highest of any Batch 3 city. Arizona's 25% state tax credit (up to $1,000) partially offsets the loss of the federal ITC. Combined with property tax and sales tax exemptions, Tucson homeowners can expect payback periods of 8–13 years. TEP's below-retail export rate means right-sizing your system to your consumption is optimal.
Key solar facts for Tucson
- 6.5 peak sun hours per day
- Tucson Electric Power (TEP) average rate: $0.128/kWh
- Average monthly bill: $150
- Popular system size: 7 kW
- Permit timeline: Tucson solar permits typically take 2–4 weeks through the City of Tucson Development Services. Pima County jurisdictions outside the city are typically similar. HOA approval (if applicable) can add 2–6 weeks.
Active Incentives
Tucson Solar Incentives in 2026
Arizona Residential Solar Tax Credit
State CreditArizona offers a 25% state income tax credit on residential solar installations, capped at $1,000. This credit is available in 2026 and applies to purchased systems.
Value: Varies
Arizona Property Tax Exemption
Property TaxSolar installations are fully exempt from Arizona property tax assessment. The added home value from solar is not taxed.
Value: Varies
Arizona Sales Tax Exemption
Sales TaxResidential solar equipment is exempt from Arizona's 5.6% state sales tax, saving approximately $728–$1,092 on a typical system.
Value: Varies
Net Metering in Tucson
Arizona net metering (Excess Generation Credit) credits excess solar generation at the export rate, which is lower than the retail rate. TEP's export rate is set by the Arizona Corporation Commission and adjusts periodically.
Solar Leases & PPAs in Tucson
Solar loans and cash purchases are the most common financing options in this market. Lease/PPA availability varies by installer.
How much does solar cost in Tucson?
Detailed cost breakdown, financing options, and payback analysis for Tucson homeowners.
Want national solar cost data? How Much Do Solar Panels Cost in 2026? →
Common Questions
Tucson Solar FAQ
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Tucson Solar at a Glance
Solar Installers Serving Tucson and Surrounding Areas
Our network of pre-vetted solar installers serves Tucson and these nearby communities:
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