Are Solar Panels Worth It In Arizona?

solar panels on roofline in arizona

Yes, solar panels are worth it in Arizona. In fact, Arizona is one of the best states for supporting solar power. From favorable solar laws to the abundant sunshine, Arizona homeowners can enjoy savings on their monthly utility bills and take advantage of additional savings with solar incentives.

Reasons Why Solar Is Worth It in Arizona

Arizona’s favorable weather for solar energy

The state of Arizona averages nearly 300 sunny days out of the year and has some of the top sunniest cities in the United States. Cities like Phoenix and Tucson see between 80-90% of sunshine during the year. All of that abundant sunshine brings a high production ratio to your professionally installed solar system. If you want to know a better estimate of how many hours of sunlight your home receives, you can calculate the peak sun hours for your area.

How much does it cost to install solar panels in Arizona?

Every home is different and when evaluating the potential cost to install solar panels in Arizona, a few factors will come into play. These include your home energy usage, exposure to sunshine, installation, and available solar incentives. With this many moving parts, it’s not possible to come up with a one-size-fits-all price. What might work for one homeowner, might not meet the goals of the next.

Here’s where our in-house solar specialists come in. We can evaluate your personal energy savings goals and come up with a free solar estimate. We’ll take into account every unique aspect of your situation, explain how you can take advantage of solar incentives, and even answer any questions you may have.

But there are many ways that Arizona as a state helps to alleviate the costs of homeowners switching to solar, which is why it is such a great place to make the switch. To learn more about how you can save money on your solar installation with solar incentives, keep reading below.

Arizona solar tax credit and other incentives

Arizona is one of the best states for solar incentives, making solar panels more affordable and cost-effective for homeowners. Solar incentives available in Arizona include:

Federal Solar Tax Credit

Homeowners can save 26% of the total cost of their solar panel system by claiming the Federal Solar Tax Credit (or ITC).

Residential Arizona Solar Tax Credit

Potentially receive 25 percent off of the cost of your panels on your personal income tax (up to a maximum of $1,000) in the year you install the system.

Solar Equipment Sales Tax Exemption

Pay no sales tax when you purchase your solar system.

Energy Equipment Property Tax Exemption

Though you add value to your home when you add solar panels, you won’t have to pay any additional property taxes.

Does Solar Increase Home Value in Arizona?

That’s right, according to research, solar panel systems do increase home value in Arizona. Energy-efficient features were found to be important to more than 80% of home buyers. That makes solar panels a major selling point! According to Zillow, homes with solar sell for 4 % more. In the United States, that can increase the median home value for a home with solar panels more than $9,000.

home on well manicured arizona lawn

Federal Solar Tax Credit

Perhaps the most lucrative of all the incentives for switching to solar comes in the form of the Federal Solar Tax Credit (or ITC). This credit offers a 26% break on federal taxes for those who qualify. This income tax break can severely reduce the cost of your solar panel system (and even qualifies for battery installations!)
The 26% federal tax credit is valid for home solar panel systems, including batteries, through December 2022. After this, the tax credit decreases to 22% and then will eventually go away.

Does Arizona Have A Solar Rebate?

Yes, the state of Arizona does have solar rebates in place by individual utility companies who participate. These rebate programs help offset the cost of customers who switch to solar energy.
Some of the participating Arizona solar rebate programs include:

Mohave Electric Cooperative – Renewable Energy Incentive Program Utility Rebate Program
Duncan Valley Electric Cooperative – SunWatts Rebate Program Utility Rebate Program
Salt River Project Battery Storage Incentive Program Utility Battery Rebate


Does Arizona have Net Metering?

Arizona has what is called net billing instead of net metering. This is also known as a feed-in tariff. With net billing, the utility company credits you as the customer for any excess energy you send back to the grid that your solar panels over produce.

The difference between net billing and net metering is that with net billing the utility company does not have to give you credits that amount to the retail rate of energy. They are allowed to credit you at a lower rate and that number is up to them. These credits still add up though and you are able to apply them to future bills when you might need to use grid energy at night, during the winter, whenever.

Many homeowners have also opted to add a solar battery to their system so they can store the excess energy their solar system generates.

Arizona Solar Access Rights

Arizona is a favorable place to go solar because local and state governments protect the rights of homeowners to pursue cleaner energy options. Currently, Arizona ranks fourth among the states in solar-powered electricity generation!

Below are the solar access laws in Arizona:

  • protect individual homeowners’ private property rights to solar access by dissolving any local covenant, restriction or condition attached to a property deed that restricts the use of solar energy.
  • prohibit HOAs from outlawing the installation of solar panels.

These laws help avoid roadblocks and red tape that may make it harder to go solar in different parts of the country – but not in Arizona!

beautiful capitol building of arizona on a sunny day

Top-rated solar company in Arizona

ADT Solar, formerly Sunpro Solar, is a dependable, trusted brand in solar energy installation. Our guarantees protect your investment into solar for the long-haul. We stand by our services and our top-of the-line products we install. Such a company can definitely make going solar worth it for homeowners. Our power production guarantee and price protection guarantee can have you feeling confident you’re choosing the right solar company in Arizona to partner with for your home’s installation.

Are solar panels worth it in Arizona?

Yes, solar panels are worth it in Arizona. From helpful laws to incentives to plenty of sunshine, Arizona is a great place for homeowners to switch to solar energy. It’s no small decision to gain more independence from the utility company and produce energy for yourself, but we’re here to make the decision an easy one.

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