Arizona Solar Incentives & Tax Credits
Every solar incentive available to Arizona homeowners in 2026.
30%
Federal Investment Tax Credit (ITC)
The Residential Clean Energy Credit lets you claim 30% of your total solar installation cost as a credit against your federal income taxes. On a $16,226 system, that's a $4,868 credit.
- ✅ No dollar cap — applies to full system cost including installation
- ✅ Available through December 31, 2032
- ✅ Unused credit can carry forward to future tax years
- ✅ Applies to batteries added at the same time as solar
$1,000
Arizona State Incentive
Arizona offers a 25% state tax credit up to $1,000.
Net Metering in Arizona
Arizona has Full Retail net metering. Your top utility, Arizona Public Service, credits you for excess solar power fed to the grid.
Policy Type
Full Retail
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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