Arizona Solar Incentives

_{Published: July 7, 2008}

_{Updated: June 12, 2024}

Arizona has become one of the foremost states for solar since its Renewable Energy Standard was instituted alongside a solar sales tax exemption in the early 2000s.

Arizona gets a lot of sunshine! More than 300 sunny days each year, to be exact. The sun shines often, and the air isn’t humid, which is perfect for solar power.

Arizona Solar Incentives

Federal Tax Credit (ITC): 30%
State Tax Credit: 25% for Residential
6 Utility Rebate Programs

Federal Solar Investment Tax Credit (ITC)

Homeowners who qualify for the Solar ITC can take advantage of a tax credit of 30% of the cost of a solar panel system. This can add up to huge savings for solar owners. The Federal ITC is set to expire in 2035, which might be set up for the renewal of the policy with a new plan.

Investment Tax Credit (ITC) Step Down Schedule

Arizona Solar Incentives & Tax Credit

Arizona offers its state solar tax credit. Residents can receive a 25% state solar tax credit on the total cost of their solar system, including installation.

Property Tax Exemptions for Solar

Arizona offers a property tax exemption for renewable energy systems, including solar installations. This exemption means that the added value of your solar panels will not increase your property taxes.

Utility Rebates

Check with your utility provider to learn more about possible incentives including net metering, credits, and rebates.

Local Government Incentives

The City of Mesa and the City of Tempe, to name a few, offer residential rebates. Check with your local municipality to learn about their programs to incentivize homeowners to make the switch to solar.

Keep Learning - Related Articles