Solar Panels in Arizona
#2 Sunniest State — Solar Pays Off Fast
$1,500/yr
Avg. Annual Savings
6.5 peak hrs/day
Peak Sun Hours
6–9 years
Payback Period
$13,000–$20,000
Avg. System Cost
Overview
Is Solar Worth It in Arizona?
Arizona is the second sunniest state in the country, with an average of 6.5 peak sun hours per day. This exceptional solar resource means Arizona homeowners can generate more electricity per panel than almost anywhere else in the nation, resulting in faster payback periods and higher lifetime savings.
Arizona also offers a state income tax credit and strong property and sales tax exemptions that stack on top of the federal incentive.
Benefits
Why Go Solar in Arizona
Reduce Your Electric Bill
Arizona homeowners save an average of $1,500/yr after going solar.
Federal 30% Tax Credit
Deduct 30% of your total system cost from your federal income taxes.
Increase Home Value
Solar panels increase your home's resale value — and are excluded from property tax in most states.
Energy Independence
Lock in your electricity rate and protect against rising utility costs for 25+ years.
Available Incentives
Arizona Solar Incentives & Tax Credits
AZ State Solar Tax Credit
Tax CreditArizona offers a 25% state income tax credit on the cost of your solar system, up to $1,000. This stacks directly on top of the federal 30% ITC.
Sales Tax Exemption
Tax ExemptionArizona exempts solar energy equipment from the state's 5.6% sales tax, saving you hundreds on your system purchase.
Property Tax Exemption
Tax ExemptionArizona exempts the added value of solar installations from residential property tax assessments.
Federal Investment Tax Credit (ITC)
Tax CreditThe federal 30% ITC applies to all Arizona homeowners who purchase their solar system.
Common Questions
Arizona Solar FAQ
Ready to go solar in Arizona?
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