Solar Incentives in Arizona (2026): State Tax Credit & Rebates

Looking at solar in Arizona? Here is every incentive and rebate you can stack in 2026, starting with the 30% federal tax credit and then Arizona’s own programs. Arizona has some of the best sun in the country plus its own state solar tax credit, making it a top solar state.

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Arizona Solar Incentives & Rebates in 2026

  • Federal tax credit (30%) on the full system cost.
  • Arizona state solar tax credit (25% of cost, up to $1,000).
  • Solar equipment sales tax exemption.
  • Property tax exemption on the added home value.
  • Net metering / net billing (varies by utility), plus exceptional sun.

What Solar Costs in Arizona

Arizona's sun hours are among the highest in the U.S. A typical 7 kW system runs about $21,000 before incentives, less after the 30% federal credit and any Arizona programs. Use the calculator above for your estimate.

Is Solar Worth It in Arizona?

Yes for most Arizona homeowners, with the state credit and top-tier production speeding payback. See our full breakdown: Is Solar Worth It in 2026?

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FAQ

Are there solar rebates in Arizona?

Yes. On top of the 30% federal tax credit, Arizona offers the incentives listed above. Confirm current amounts before purchasing.

Can I combine Arizona and federal incentives?

Yes. The federal credit stacks with Arizona rebates and tax exemptions.

Related

General 2026 guidance, not tax advice. Verify current Arizona program rules before purchasing.

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