Estimated Savings for a Typical Arizona Home
Based on a standard 8 kW home system
System Size
8 kW
Gross Cost
$21,600
State Incentive
-$1,000
Net Cost
$20,600
Annual Savings
$1,944
Payback Period
10.6 yrs
25-Year Savings
$45,787
CO₂ Offset/yr
13,969 lbs
Arizona Solar Incentives
✕
Federal Tax Credit (Expired Dec 31, 2025)
The 30% federal Residential Clean Energy Credit ended for purchased systems on December 31, 2025. Homeowners buying with cash or a loan in 2026 can no longer claim it. A solar lease or PPA can still pass through a federal credit through 2027 — the installer claims it and lowers your payments.
$1,000
Arizona State Incentive
Arizona offers a 25% state tax credit up to $1,000.
Net Metering Policy: Avoided Cost
Top utility in Arizona: Arizona Public Service. View full incentives detail →
Solar Costs by City in Arizona
| City | Annual Savings | Payback (yrs) | Population ↓ | Utility |
|---|---|---|---|---|
| Phoenix | $1,973 | 10.4 | 1,608,139 | Arizona Public Service |
| Tucson | $2,156 | 9.6 | 542,629 | Tucson Electric Power |
| Mesa | $1,742 | 11.8 | 504,258 | Arizona Public Service |
| Chandler | $1,974 | 10.4 | 275,987 | Arizona Public Service |
| Gilbert | $2,189 | 9.4 | 267,918 | Arizona Public Service |
| Scottsdale | $2,168 | 9.5 | 258,069 | Arizona Public Service |
| Glendale | $2,082 | 9.9 | 248,325 | Arizona Public Service |
| Tempe | $1,804 | 11.4 | 195,805 | Arizona Public Service |
| Peoria | $2,108 | 9.8 | 190,985 | Arizona Public Service |
| Surprise | $2,183 | 9.4 | 144,416 | Arizona Public Service |
Solar Savings Calculator
Instant estimate — no email required
$
Quick Facts: Arizona
- ⚡ Avg rate: $0.128/kWh
- 🌞 Peak sun: 6.5 hrs/day
- 🏭 Top utility: Arizona Public Service
- 📋 Net metering: Avoided Cost