Solar in Arizona: Save 40-60% on Installation
Arizona gets more sun than anywhere in the US. Stop overpaying for panels you can buy yourself, pair wholesale equipment with a licensed AZ electrician.
What Solar Really Costs in Arizona
Arizona has outstanding solar economics. Here are the numbers that matter.
10kW System: Turnkey vs. The Off Grid Outpost
| Turnkey Installer | The Off Grid Outpost | |
|---|---|---|
| Equipment (panels, inverter, racking) | Included | $6,800 - $10,000 |
| Design & permitting | Included | $400 - $700 |
| Installation labor | Included | DIY or local help |
| Licensed electrician | Included | $1,200 - $2,500 |
| Installer margin & overhead | $7,000 - $11,000 | $0 |
| Total Cost | $22,000 - $32,000 | $10,000 - $16,000 |
| You save $12,000 - $16,000 |
Electricity Rates Are Climbing in Arizona
APS and SRP rates have increased 25%+ since 2020, with TOU peak rates hitting 24-27¢/kWh. Solar shifts your consumption off-peak, and battery storage eliminates demand charges entirely.
Solar locks in your electricity cost for 25 years. Every rate increase after you install is money you keep.
Lock In Your RateWhat You Need to Know About Arizona Solar Rules
Owner-Builder Exemption
Arizona allows homeowners to install solar on their own property under the owner-builder exemption.
Licensed Electrician Required
Dual license required: ROC (Registrar of Contractors) license for construction, plus electrical license for wiring. Owner-builder exemption available for personal residence.
Net Metering Available
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.
Permitting
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.
Arizona Solar Incentives & Tax Benefits
Residential Solar Tax Credit
Arizona offers a personal income tax credit of 25% of solar system cost, up to $1,000
Up to $1,000
Property Tax Exemption
Solar equipment is exempt from property tax assessment increases
Sales Tax Exemption
Solar equipment purchases are exempt from state sales tax (5.6%)
Federal 48E Credit (30%)
The 30% federal tax credit under Section 48E applies to third-party ownership (TPO) arrangements only. Section 25D for homeowner-purchased systems expired January 1, 2026.
Utility Providers in Arizona
Arizona Public Service
Average rate: 13.5¢/kWh
Salt River Project
Average rate: 6.43¢/kWh
Tucson Electric Power
Average rate: 13.5¢/kWh
Solar by Metro Area
Local context for Arizona's largest solar markets.
Phoenix
Arizona's largest metro gets 6.5 peak sun hours, among the highest in the nation. APS net billing and high cooling loads make solar + battery the smart play.
Tucson
TEP territory with strong solar irradiance and straightforward permitting. Tucson's lower cost of living means solar has an even faster payback period.
Scottsdale
APS service area with premium housing stock. Solar adds significant home value while offsetting substantial cooling bills.
Mesa
Mostly SRP territory, battery storage is essential here due to SRP's demand-based rate plans. Solar + battery eliminates demand charge exposure.
See Your Arizona Solar Savings
Get a custom savings estimate based on your roof, your utility, and your actual electric bill.
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