Solar Cost Index

Solar by state › Arizona

Is solar worth it in Arizona? (2026 numbers)

For a typical Arizona home with a $158/month electric bill, a 6.9 kW system costs about $17,900 before incentives and saves about $1,430 in year one, paying back in roughly 12 years if you buy it. The federal 25D credit ended for systems installed after 2025, so many Arizona homeowners now compare cash purchase against a lease or PPA.

Updated 2026-10-20. Figures are estimates being refreshed against EIA and NREL data. See methodology.

Avg. electricity rate15¢/kWh
Typical system6.9 kW
Est. cost before incentives$17,900
Year-1 savings$1,430
25-yr net savings$30,900

Net metering: Resource Comparison Proxy (RCP) export rate

APS and TEP credit exports at an RCP rate that is below retail and steps down over time, so self-consumption and batteries matter.

Incentives still available

Major utilities

APS, SRP, Tucson Electric Power

Solar by city in Arizona

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Frequently asked questions

Is solar worth it in Arizona in 2026?

For a typical Arizona home with a $158/month electric bill, a 6.9 kW system costs about $17,900 before incentives and saves about $1,430 in year one, paying back in roughly 12 years if you buy it. The federal 25D credit ended for systems installed after 2025, so many Arizona homeowners now compare cash purchase against a lease or PPA.

How does net metering work in Arizona?

Resource Comparison Proxy (RCP) export rate: APS and TEP credit exports at an RCP rate that is below retail and steps down over time, so self-consumption and batteries matter.

What solar incentives are left in Arizona?

The 30% federal homeowner credit (25D) ended for systems installed after December 31, 2025. State and local programs still include: State residential solar tax credit (25%, up to $1,000); Sales and property tax exemptions. Leases and PPAs can still pass through a federal business credit claimed by the system owner.

Should I add a battery in Arizona?

Because exported solar earns less than retail in Arizona, a battery that stores daytime solar for evening use usually improves savings, and it also gives you outage backup.