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Home solar in Arizona

APS and UNS export credits dropped 10% again on September 1, 2026, to about 5.55 cents/kWh; new customers lock in the rate in effect when they apply, so applying sooner keeps a higher credit.

Facts checked 2026-11-01, each with a source link below. Programs change often: confirm with your utility, installer and a tax professional before you sign.

15.1¢average home price per kWh (EIA, August 2026)
Solar can workStrong sun, a 25% state tax credit (up to $1,000), and no property or sales tax on solar. But exports earn only about 5.5 cents/kWh and fall up to 10% each year, so savings depend on using your own power or adding a battery.

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Net metering Replaced by a lower credit

Arizona replaced net metering in 2017. ACC-regulated utilities (APS, TEP, UNS) pay for exported power at the Resource Comparison Proxy (RCP) rate, which can fall up to 10% a year. You lock in the RCP in effect when you file your interconnection application (for 10 years under ACC rules). APS's RCP went from 6.171 to 5.554 cents/kWh on 9-1-2026. SRP is not ACC-regulated and sets its own solar rules. Source

  • 2025-09-01: APS RCP 6.171 cents/kWh
  • 2026-09-01: APS/UNS RCP 5.554 cents/kWh
  • 2027-09-01: next possible 10% step-down

Solar credits (SRECs) No market

Arizona has no SREC market for homes. The utility gets the renewable credits from exported power. Source

Rebates and incentives

Residential Solar Energy Credit (A.R.S. §43-1083)

25% of cost, up to $1,000 total per home; unused credit carries forward up to 5 years

Arizona residents who install solar on their own home

open tax credit Source

Taxes

Property tax: Exempt: rooftop solar and grid-tied PV for on-site use are considered to add no value to the property (A.R.S. §42-11054(C)(2)).
Sales tax: Exempt: registered solar retailers and contractors deduct solar device sales and installation from transaction privilege (sales) tax (A.R.S. §§42-5061, 42-5075). Source

Solar laws

  • HOA solar access, A.R.S. §33-1816 (). An HOA may not ban solar. It may set reasonable placement rules only if they do not block, hinder, or make the system cost more or work less well. A homeowner who wins in court gets attorney fees. Source
  • ACC RCP export rate and 2026 APS update (2026). Export rate for APS and UNS cut 10% to 5.554 cents/kWh from 9-1-2026; a similar TEP cut was set for an ACC vote the following month. Source

Community solar

No: Arizona has no statewide community solar program.

Timeline

  1. ACC replaces net metering with RCP export rate
  2. ACC approves APS RCP of 6.171 cents/kWh (effective 9-1-2025)
  3. Federal 30% homeowner tax credit (25D) ends
  4. APS files for 10% RCP cut
  5. APS/UNS RCP falls to 5.554 cents/kWh

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

We give free home reviews in Maryland, DC and Virginia today. How to compare solar options