Home Solar in Arizona:

Local installers, tax credits, and rebates.

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Arizona residents who experienced power outages in a span of ten years¹


Prices have fallen 54% over the last 10 years²


Average yearly savings for homeowner's who switch to solar³

Arizona Solar

Arizona is one of the sunniest places in the United States and boasts over 170,000 solar system installations across the state. As much of Arizona is desert, that’s a lot of solar opportunity. In addition to favourable climate, Arizona state government policies favor solar tax incentives. Despite relatively low energy prices and only moderately encouraging utility policies, the tax incentives and sheer abundance of sun make Arizona a favorable place for businesses and residents to install solar panels and battery systems as an investment.

Below we will list some of those incentives, the utility policies associated with interconnection and setup, and special solar financing plans for solar panels and battery systems in Arizona.

Top 3 Installers in Arizona

SunPowerSunnova SolarTitan Solar Power
Known forProduct quality and complete warrantiesIncredible installation and battery warrantiesGreat installation pricing and warranties
Purchase OptionsLease, PPA, Loan, CashLease, PPA, Loan, CashLease, PPA, Loan, Cash
Workmanship Warranty25 Years25 Years25 Years
Equipment Warranty25 Years25 Years25 Years

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Your Installer is SunPower.

Why EnergyPal Recommends:

  1. Maxeon panels give you the most energy per watt and over time.
  2. Incredible product quality and complete warranties.
  3. The only integrated Manufacturer, Contractor and Warranty Holder.
  4. Selected by NASA, Apple headquarters and other top institutions.

Installer Strengths:

  • Multi-billion dollar public company on the NASDAQ [SPWR].
  • Founded in 1985, SunPower pioneered solar manufacturing.
  • Maxeon panels have the highest efficiency with a lower degradation rate.
  • 25-year Complete Confidence solar and roof warranty.
  • Excellent project management to get your job done.


  • Sometimes project communication is underwhelming. Overall quality of product, warranty and post installation service are top notch.


4.6 ★ ★ ★ ★ ★


51 Rio Robles San Jose, CA 95134

Service Area:


Sunnova Solar Power


Your Installer is Sunnova Solar Power.

Why EnergyPal Recommends:

  1. Production guarantee on all financing (loan/lease/PPA).
  2. Incredible 25-year solar installation and battery warranties.
  3. Access to many great local installers within the network.

Installer Strengths:

  • Multi-billion dollar public company on the NYSE [NOVA].
  • Most consumer-friendly power purchasing agreements.
  • All-inclusive 25-year Protect Plan provides extra coverage.
  • Extended 25-year battery warranty best in the industry.


  • Strictest underwriting guidelines disqualify many applicants.
  • Project communication can sometimes be confusing, but installation process and warranties are top-notch.


4.2 ★ ★ ★ ★ ★


20 Greenway Plaza, Houston TX, 77046

Service Area:


Titan Solar Power


Your Installer is Titan Solar Power.

Why EnergyPal Recommends:

  1. No frills approach results in great installation pricing.
  2. Access to many top financing options.
  3. Excellent warranties.

Installer Strengths:

  • 25 Year workmanship and roof penetration warranties.
  • Grew from an electrical contractor with 35 years of history.
  • Great low pricing due to large scale (1000+ installs/month).


  • Large installation territory can result in slower communications and issue resolution.


4.1 ★ ★ ★ ★ ★


525 West Baseline Road, Mesa AZ, 85210

Service Area:


Incentive Programs, Tax Credits, and

Solar Rebates in Arizona

Federal ITC - 30%Solar PV systems installed in 2022 - 2032 are eligible for a 30% tax credit. The credit can only be claimed by on the original installation of the solar equipment located at a residence of yours. You must also purchase it using cash or financing, but you're not leasing the system or paying a solar company for the electricity produced by the system.
Instant Rebate from EnergyPalEnergyPal secures group discounts by leveraging the depth of our network. We pass these savings onto homeowners every day!
Mohave SunWatts Renewable Energy Rebate ProgramIncentives for residential and small commercial photovoltaic and wind systems are 5 cents per watt, up to a maximum system size of 50 kW. The incentive cap is $2,500 for residential and small commercial. Leased systems are not eligible for incentives.
Tax CreditThe Residential Arizona Solar Tax Credit reimburses you 25 percent of the cost of your solar panels, up to $1,000, right off of your personal income tax in the year you install the system.

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Arizona Rebates and Tax Breaks

Here are more details about the incentives available in Arizona:

  • Residential Arizona Solar Tax Credit is the principal solar incentive in the state of Arizona. Residential property owners can be reimbursed 25% of the cost of solar panels, solar systems, solar hot-water heaters, etc. The maximum rebate amount is $1,000, and the credit comes off of your income taxes for the year in which you install the equipment.
  • The Solar Equipment Sales Tax Exemption is a tax break where you don’t pay any sales tax on solar panels, systems or related equipment in Arizona.
  • The Energy Equipment Property Tax Exemption is a tax break where you won’t pay additional property taxes if your property value increases when you add a solar system (and with solar, your property value does go up!).
  • The Salt River Project pays up to $3,600 for battery storage systems if you agree to participate in their battery study.

Other Solar Energy Incentives

The US federal government helps residents and businesses pay for their solar systems. The federal investment tax credit (ITC) allows for a tax deduction of 30% of the cost of a solar system currently. Tax credits can be rolled over if you can’t use the whole credit this year. The ITC cannot be claimed for solar leases or power purchase agreements (PPAs) where the third party financier takes the credits themselves, but that is typically baked into a reduced lease/PPA monthly for you.

If you purchased a $20,000 system, your savings from the federal tax credit would look like this:

$20,000 X 0.30 = $6,000 savings

You also would save an additional $1,000 by taking advantage of the Arizona tax credit. So if you spent $20,000 on that system, your cost would go down to $14,000.

Find out about other residential rebate programs in Arizona such as programs for electric vehicles and battery storage incentives by exploring the Arizona Solar Center website or the Governor's Office of Energy Policy.

Utility Policies

Utility policy factors determine what your utility provider pays you for the excess power you produce and what you save on your power bill by reducing electricity usage. Utility policies have the potential to be the most influential factor of the ROI on your installed solar, but in Arizona policies have moved away from favoring residential solar owners.

Utility Policies

One important policy for solar customers is called Net Metering. Net Metering is a billing mechanism that allows solar customers to push electricity to the grid for credit that can be used later, like at night when your solar panels aren’t generating power. This incentivizes people to go solar, provides clean energy for others to use and prevents waste. Some states have poorer net metering policies than others, meaning that credits may not be able to be rolled over to the next month or year, or that you don’t earn full watt-for-watt credit for your excess energy.

Arizona’s Net Metering program is less than favorable, but it does have one. You are not paid full retail credit for your excess energy. Your export rate ranges from $0.03 to $0.11 per kWh, which is below the going retail rate. Your rate is set when you install your solar system and locked for 10 years. Credits can be carried over into the next month and sometimes into the next year, and you can connect a system up to 100 kW in size - an unusually large system size. The exact details depend on your electricity provider’s policies.

Solar Setup Fees

You must have a bi-directional meter (necessary for Net Metering), which is installed at no cost.

Electricity Prices

Electricity prices in Arizona are on the low end, which is great for homeowners but means that margins for savings are slim for going solar. According to the US Energy Information Administration, the average total cost of electricity in Arizona is $0.117 per kWh for residents. The national average for all states is $0.134 per kWh, ranging from $0.967 to $0.288 per kWh. For most Arizonians this means that solar is an investment that pays dividends in the long-term, not always in the short term.

Rate Design

Rate designs are comprised of monthly fees and either a flat or tiered rate you pay for electricity. Good rate designs, which save you money when you conserve energy, are tiered and have low fixed monthly fees. Poor rate designs have flat rates and high fixed monthly fees.

Arizona is about average when it comes to the quality of its electricity bill rate design. It has many tiered rate programs but low fixed fees (around $10–$15 per month).

You still pay fixed monthly fees when you go solar because you are still tied to the grid. Being tied to the grid is a good thing, because otherwise you might not have power at night or if your system stopped working suddenly. Even if you go off of the grid and rely on a battery source, the high cost of the battery would not outweigh the low monthly fee and the savings obtained from a net metering program.

PACE Programs

PACE stands for Property Assessed Clean Energy and is a financing program for solar projects that is tied to the home instead of the homeowner. The PACE program is not available in Arizona - and there are some solar advocates who say the PACE program could be doing more harm than good to homeowners and to the residential solar industry.

Home Solar Financing in Arizona

There are three pathways to powering your home with solar energy in Arizona: purchasing the solar system outright, obtaining a loan for its financing, or opting for a leasing program. Solar systems can be financed by bank loans, solar installer financing, new home mortgages, energy loans and home equity loans or lines of credit. Cash works too. Regardless of your choice, solar panels can reduce your home energy expenses, contributing to financial savings and a cleaner power supply. Our Energy Advisors can guide you to the best solar deals in Arizona. Here's a comparison:

Solar Purchase

  • Optimal Return-On-Investment
  • Potential Reduction of Bills to near $0
  • Enhances Property Value

Outright Solar Purchase: Homeowners with a stronger financial position often cover the full cost of solar upfront, yielding the highest return-on-investment over the system's lifespan. By paying in cash, homeowners in Arizona can claim tax credits and rebates, avoid interest charges, and directly enjoy the savings on their electricity bills. Some of our customers experience virtually no electricity expenses from the moment they install solar. We offer top-tier products at attractive cash prices.

Solar Loan

  • No Initial Expenses
  • Ownership of the System
  • Appreciates Property Value

Solar Loan Financing: Utilizing a solar loan enables you to save and own your solar system, as our financiers cover the upfront expenses (similar to an auto loan). Homes equipped with solar systems command higher value due to their lower operational costs. Depending on the chosen solar loan, you can achieve greater monthly savings or complete your financing earlier. Our team will help you secure the most favorable rates and terms to match your requirements. To learn about our latest offerings, connect with us

Solar Lease

  • No Initial Investment Required
  • Complete Maintenance Coverage
  • Lower Monthly Payments
  • Guaranteed Rates

Solar Leasing: Leasing solar panels provides an accessible and cost-effective path to solar adoption. With zero upfront costs—often referred to as “$0 down solar financing“—installation and maintenance are entirely managed, and your home benefits from the energy generated by the solar panels. You pay a consistent monthly fee and save compared to your existing electricity bill. The reduced electricity rate are what many homeowners like about this option.

Talk to your EnergyPal Advisor about financing solar options in Arizona. We regularly source the best deals and terms for our customers. Let us guide you through the finance and application process from A-Z.

Find The Best Deals On Home Solar In Arizona

Step 1 of 4

Do you own or rent your property?

In sum, here are the most advantageous solar incentives in AZ:

Arizona Solar Incentives

Arizona provides multiple solar energy rebates and incentives that help to reduce the overall cost of solar systems. Our EnergyPal Advisors can help you navigate all of the solar incentives available in Arizona and also apply them to the available solar panel offerings.

  • Arizona offers a 25% credit, up to $1,000, on a solar, solar-battery or battery system. It’s applied to your owed income taxes.
  • No sales tax on solar panels, systems and related equipment.
  • No property tax on any increase in property value from installing solar.
  • The Salt River Project pays up to $3,600 for battery storage systems if you agree to participate in their battery study.

Understanding the solar industry, advantages and possible risks can be complex and changes frequently, so even after doing your own research if you are not sure - that’s not surprising! If you’re interested in seeing if solar will benefit you, talk to your EnergyPal Advisor about financing solar options in Arizona. We regularly source the best deals and terms for our customers.

Frequently Asked Questions

Is it worth going solar in Arizona?

In most cases, yes, solar will save you a significant amount of money. Solar panels produce electricity and reduce how much power you have to purchase from your electric company. The typical homeowner in Arizona pays around 14.3¢ cents per Kilowatthour.

What is the payback period for solar panels in Arizona?

Homeowners who install a solar array sized to meet 100 percent of their energy needs can still pay off the upfront cost in as little as 5-6 years. The typical payback period in Arizona averages 5.8 years.

How much are solar panels in Arizona?

As of August 2023, the average solar panel cost in Arizona is $2.44/W. Given a solar panel system size of 6 kilowatts (kW), an average solar installation in Arizona is $10,248 with 30% tax credit applied.

What incentives are available for solar in Arizona?

Solar installations in Arizona are eligible for the 30% solar tax credit. Connect with us to learn more about all the local Arizona incentives, tax credits & rebates you qualify for.




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