Arizona Solar Incentives & Tax Credits
Every solar incentive available to Arizona homeowners in 2026.
⚠️
Federal Tax Credit — Expired for Purchases
The 30% federal Residential Clean Energy Credit (Section 25D) expired on December 31, 2025. Homeowners who buy a system with cash or a loan in 2026 can no longer claim it — a $16,226 system that once carried a $4,868 credit now has none.
- ✅ Solar leases and PPAs can still capture a federal credit through 2027 — the installer claims it and lowers your monthly payment
- ✅ State incentives and net metering below still apply to purchased systems
- ✕ No federal credit for cash or financed purchases placed in service after Dec 31, 2025
$1,000
Arizona State Incentive
Arizona offers a 25% state tax credit up to $1,000.
Net Metering in Arizona
Arizona has Avoided Cost net metering. Your top utility, Arizona Public Service, credits you for excess solar power fed to the grid.
Policy Type
Avoided Cost
Electricity Rate
$0.128/kWh
Top Utility
Arizona Public Service
Utility Net Metering Policies in Arizona
| Utility | Rate/kWh | Net Metering | Capacity Limit |
|---|---|---|---|
| Arizona Public Service | $0.128 | Full Retail | 125% of annual consumption |
| Tucson Electric Power | $0.128 | Full Retail | 125% of annual consumption |
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