Data page · Southwest region
Solar Panel Cost in Arizona (2026)
A typical Arizona rooftop system costs around $2.45/W cash, installed, before incentives — with most quotes landing between $2.15/W and $2.9/W. The federal residential tax credit is $0 for 2026 installations (it ended 12/31/2025).
Market estimate · compiled 2026-08 · sources: marketplace reports, NREL, EIA, state programs — see methodology.
The federal residential solar tax credit (30% §25D) ended December 31, 2025.
Under the One Big Beautiful Bill Act, systems placed in service on or after January 1, 2026 do not qualify for the residential credit. Systems installed and operational by December 31, 2025 can still be claimed at 30% on the 2025 return. Commercial and third-party-owned (lease/PPA) projects may qualify under §48E — see the federal incentives page.
Status verified 2026-08-21. Confirm your circumstances with a qualified tax professional.
Typical cash price / watt
$2.45
range $2.15–$2.90 $/W
10 kW system (gross)
$24,500
$21,500–$29,000 · before incentives
Avg electricity rate
15.23¢/kWh
EIA May 2026 · avg use 1075 kWh/mo
Export / net-metering
net billing
Retail net metering is being replaced by export-credit structures for new customers (APS e…
Cost by system size
Gross installed cash price, before incentives. Net cost in 2026 = gross − $0 federal − any verified state/local incentive (see below).
Solar resource & economics
- Production factor (est.)
- 1575 kWh/kW/yr
- 10 kW annual production (est.)
- 13,545 kWh
- Year-1 savings for 10 kW at avg rate, 35% self-use
- $1,728
- Simple payback (net cost ÷ Yr-1 savings, rough)
- ≈ 24 yrs
These are rough planning numbers. Model your exact scenario in the price calculator — assumptions are visible and adjustable.
Export policy detail
Retail net metering is being replaced by export-credit structures for new customers (APS et al.); SRP uses demand-charge plans. Verify your utility tariff.
Why it matters: if exports are credited at the retail rate (1:1 net metering), every kWh counts the same. Under net billing or avoided-cost export, storing daytime power (battery) or shifting use matters far more. Your utility’s tariff — not the state average — decides this. Utility records
Incentives in Arizona (status-aware)
APS / utility export credit
Recheck neededBelow-retail export credits for new customers (structure varies by utility)
Retail net metering is being replaced by export-credit structures — confirm your utility’s current tariff.
Source: Arizona Corporation Commission; utility tariffs · Last checked 2026-08-21
Property tax exemption for solar
CurrentExempt from property tax (local option)
Confirmed current.
Source: Arizona Revised Statutes · Last checked 2026-08-21
Tax exemptions: Property tax — current: Exempt from property tax (local option).
Federal residential credit (§25D): expired 12/31/2025 — $0 for 2026 installations. Commercial/third-party-owned projects: see federal incentives.
Local considerations
- Excellent sun, aggressive installer competition → low $/W.
- High cooling load; air-conditioning drives both usage and self-consumption.
- Export credits below retail for many new customers — battery value depends on tariff.
Battery note: batteries add roughly $1,000–$2,000/kWh installed and rarely pay for themselves on energy savings alone. In Arizona, storage value depends on your export policy (net billing), TOU rates and outage risk — model it in the battery calculator.
Nearby states
Next steps
Every estimate on this page is a planning range — only a site inspection and real quote give an exact price.
Data sources: EIA Electric Power Monthly (rates, May 2026) · NREL (solar resource) · marketplace cost reports & state programs (cost estimates, 2026) · incentive records last checked 2026-08-21. Full detail in methodology.