Arizona Solar Incentives


The Grand Canyon State gets more sun than any state in the country, making it a very attractive place to install rooftop solar due to the superior system productivity. In addition, Arizona legislators and some utility companies provide favorable incentives to support homeowners going solar.


State Incentives

Type: Renewable Portfolio Standard (“Renewable Energy Standard”)

Details: No solar requirement, but solar facilities are eligible


Type: Arizona Solar Energy Credit (personal income tax credit)

Amount: Up to $1000.


Local Incentives

City of Maricopa

Type: Rebate

Amount: $.60/watt DC

Restrictions: Capped at $3,000 (first 5 kW of capacity)

Other: Rebate program is in addition to the rebate offered by local utility Electric District No. 3, and eligible systems must first apply to ED3’s program.


Utility Incentives


Type: Rebate

Amount: $1.00/watt DC grid-tied, $1.50/watt DC off-grid

Restrictions: Up to 50% of project costs. Funding may be limited, and is allocated through the Rapid Reservation Program.

Other: APS retains ownership of SRECs generated.



Type: Rebate

Amount: $1.35/watt DC

Restrictions: Up to $6,750 (first 5 kW of capacity)

Other: SRP retains ownership of SRECs generated


Sulphur Springs Valley EC

Type: SunWatts rebate- upfront or production-based rebate

Amount: $2.00/watt DC for upfront; $.162/kWh – $.182/kWh

Restrictions: Up to 40% system costs for upfront; up to 50% system costs for performance-based incentive

Other: System must be grid-tied


Type: Solar loans

Amount: $2.00/watt

Restrictions: maximum amount of 25% of system costs at 3% interest rate.

Other: Can be combined with the rebate program. Funds available on a first come first serve basis.



Type: Rebate

Amount: $.75/watt DC grid-tied, $.50/watt DC off-grid

Restrictions: Rebate counts toward the first 50 kW AC or 60% of system costs, whichever is lower.

Other: If combined with other federal/state incentives, total incentive can cover no more than 85% of system costs.


Trico Electric Cooperative

Type: SunWatts Rebate, upfront rebate or production incentive

Amount: $1.50/watt DC for systems under 10 kW (maximum $15,000 incentive) for upfront; Performance-based incentive for systems under 10 kW at $.068/kWh over 10 years

Other: Funds currently exhausted, but still accepting applications.



Type: Rebate

Amount: $1.60/watt DC

Restrictions: Up to 50% of system costs

Other: UES retains ownership of SRECs generated.


Net Metering

Arizona does offer net metering. The only restriction is that they ask customers not to size their solar systems larger than 125% of current electric needs. What that means is that the extra 25% power that your solar panels generate can be sold to the utility, who will cut you a check at the end of the year.  Therefore, if you install a system that takes care of 125% of your current electricity needs, you will not only get free electricity, but some extra money to top up your savings account.


So if these savings look attractive to you then why not find out if solar will work for you. Fill out our quick and easy form and an Arizona solar expert will contact you.