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, and the headline has changed: the 30% federal tax credit expired at the end of 2025, so Arizona’s own programs are what is left. 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

  • No federal tax credit on a 2026 cash or loan purchase - Section 25D expired 31 December 2025.
  • 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. There is no federal tax credit in 2026, so only Arizona programs reduce that. 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, at the state and utility level. The 30% federal tax credit expired 31 December 2025, but Arizona still offers the incentives listed above. Confirm current amounts before purchasing.

Can I combine Arizona and federal incentives?

There is no federal credit left to stack on a 2026 cash or loan purchase. Arizona rebates and exemptions still stack with each other.

Related

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

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