Cost report
Solar cost in Arizona, 2026
Last updated May 5, 2026, based on May 2026 equipment pricing
Arizona averages 6.2 peak sun hours per day at an average residential rate of 13¢ per kWh, escalating ~3.8% per year. A properly-sized 10 kW system in this state produces roughly 21,046 kWh in year one, about $2,736 of bill offset before any incentives.
What does a 10 kW system cost in Arizona?
Three install paths, three price bands. Equipment cost is ~national; labor and permit cost vary by state.
Turnkey installer
$27,500–$35,000
$2.75–$3.50/W installed
Full-service: equipment + permits + design + installation + interconnect. One vendor, one warranty, two-day install.
Semi-DIY (recommended)
$15,000–$21,000
$1.50–$2.10/W landed
Homeowner sources equipment at wholesale, hires a licensed electrician for interconnect. Saves 30–50% vs. turnkey while keeping inspection sign-off.
Full DIY (equipment only)
$10,000–$14,500
$1.00–$1.45/W equipment
Equipment cost only, owner-builder install with electrician hired only for the line-side tap or main panel work. Allowed in this state.
Net metering & top utilities in Arizona
Statewide net metering policy
Net Billing at ~5¢/kWh
APS transitioned to net billing (Resource Comparison Proxy rate ~5c/kWh). SRP uses demand-based rate plans unfavorable to solar without battery. Grandfathered NEM customers retain retail credit.
Arizona Public Service
~13.5¢/kWh average
Net metering: net billing, ~7.5¢/kWh
Salt River Project
~6.43¢/kWh average
Net metering: net billing, ~3.45¢/kWh
Tucson Electric Power
~13.5¢/kWh average
Net metering: net billing, ~5.7¢/kWh
State incentives in Arizona
credit
Residential Solar Tax Credit
Arizona offers a personal income tax credit of 25% of solar system cost, up to $1,000
tax exemption
Property Tax Exemption
Solar equipment is exempt from property tax assessment increases
tax exemption
Sales Tax Exemption
Solar equipment purchases are exempt from state sales tax (5.6%)
Permits & licensing
Dual license required: ROC (Registrar of Contractors) license for construction, plus electrical license for wiring. Owner-builder exemption available for personal residence.
Most AZ jurisdictions require building and electrical permits. Maricopa County and City of Phoenix have streamlined solar permitting. SRP requires pre-approval before installation. Battery-first systems strongly recommended for SRP customers due to demand charges.
Owner-builder exemption: available
Methodology
Pricing reflects May 2026 wholesale equipment market data plus state-specific labor adjustments. Turnkey ranges are surveyed installer quotes; semi-DIY and DIY ranges assume sourcing from our equipment catalog with paid licensed-electrician interconnect. Production estimate uses 6.2 peak sun hours, 0.93 derating factor, and the state's 13¢/kWh average rate. These figures use standard derating, escalation, and TOU assumptions.