Solar in Arizona: companies, incentives, net metering and cost
I counted 33,178 home solar systems in utility records across 9 Arizona cities I cover. Pick a city to see which companies installed them, or read on for Arizona incentives, export credits, prices and payback in 2026.
| City | Systems (years) | Companies with 30+ systems | Most active | Utilities | kWh a year per kW |
|---|---|---|---|---|---|
| Phoenix | 14,468 (2022–2023) | 57 | Freedom Forever | Arizona Public Service, Salt River Project | 1,755 |
| Tucson | 5,430 (2022–2024) | 31 | Freedom Solar | Tucson Electric Power | 1,788 |
| Chandler | 1,314 (2022–2023) | 11 | Fusion Power | Salt River Project | 1,753 |
| Scottsdale | 1,452 (2022–2023) | 16 | Tesla Energy | Arizona Public Service, Salt River Project | 1,745 |
| Gilbert | 1,402 (2022–2023) | 11 | Fusion Power | Salt River Project | 1,750 |
| Glendale | 3,214 (2022–2023) | 27 | Our World Energy | Salt River Project | 1,754 |
| Tempe | 821 (2022–2023) | 7 | Sunrun | Salt River Project | 1,752 |
| Peoria | 1,480 (2022–2023) | 13 | Sunsolar Solutions | Arizona Public Service | 1,771 |
| Surprise | 3,597 (2022–2023) | 17 | Freedom Forever | Arizona Public Service | 1,785 |
Net metering in Arizona: what utilities pay for exported power
Net billing. Utilities regulated by the Arizona Corporation Commission (APS, TEP) credit exports at the Resource Comparison Proxy (RCP) rate, locked for 10 years from interconnection; the rate for new customers can drop by no more than 10% per year. SRP is not ACC-regulated and sets its own export credit.
| Utility | Program | Credit | Source |
|---|---|---|---|
| Arizona Public Service | Rate Rider RCP | $0.0555/kWh | tariff |
| Salt River Project | Customer generation export price plans (E-13 Time-of-Use Export, E-14 EV Export) | $0.0345/kWh | tariff |
| Tucson Electric Power | Rider R-14 Resource Comparison Proxy | $0.0513/kWh | tariff |
Arizona solar incentives and tax credits in 2026
- Federal tax credit: the 30% Residential Clean Energy Credit is not available for property placed in service after December 31, 2025 (IRS). What changed.
- Credit for Solar Energy Devices (A.R.S. 43-1083): 25% of device cost, max $1,000 per residence, unused credit carried forward up to 5 years, no sunset in statute (source).
- Property tax: A.R.S. 42-11054(C)(2): solar energy devices designed to produce solar energy primarily for on-site consumption are considered to add no value to the property.
- Sales tax: A.R.S. 42-5061(M): amounts received from sales of solar energy devices are deducted from the transaction privilege tax base; the retailer must be registered as a solar energy retailer.
How much do solar panels cost in Arizona?
Average quoted prices before incentives in the Arizona cities I cover, and what that means for a 7 kW system:
| City | Price per watt | 7 kW system | Source, updated |
|---|---|---|---|
| Phoenix | $2.28/W | $15,960 | EnergySage, 2026-09-04 |
| Tucson | $2.26/W | $15,820 | EnergySage, 2026-09-04 |
| Chandler | $2.29/W | $16,030 | EnergySage, 2026-09-11 |
| Scottsdale | $2.25/W | $15,750 | EnergySage, 2026-09-11 |
| Gilbert | $2.26/W | $15,820 | EnergySage, 2026-09-11 |
| Glendale | $2.23/W | $15,610 | EnergySage, 2026-09-11 |
| Tempe | $2.23/W | $15,610 | EnergySage, 2026-09-11 |
| Peoria | $2.27/W | $15,890 | EnergySage, 2026-09-11 |
| Surprise | $2.25/W | $15,750 | EnergySage, 2026-09-11 |
Is solar worth it in Arizona without the federal credit?
Payback for a 7 kW system bought with cash, from each utility's current rate and export credit. No federal credit is assumed. How I calculate.
| City | Utility | Net cost | Bill savings, year 1 | Payback |
|---|---|---|---|---|
| Phoenix | Arizona Public Service | $14,960 | $1,204 | 12.4 years |
| Phoenix | Salt River Project | $14,960 | $1,131 | 13.2 years |
| Tucson | Tucson Electric Power | $14,820 | $1,244 | 11.9 years |
| Chandler | Salt River Project | $15,030 | $1,130 | 13.3 years |
| Scottsdale | Arizona Public Service | $14,750 | $1,197 | 12.3 years |
| Scottsdale | Salt River Project | $14,750 | $1,125 | 13.1 years |
| Gilbert | Salt River Project | $14,820 | $1,128 | 13.1 years |
| Glendale | Salt River Project | $14,610 | $1,131 | 12.9 years |
| Tempe | Salt River Project | $14,610 | $1,130 | 12.9 years |
| Peoria | Arizona Public Service | $14,890 | $1,215 | 12.3 years |
| Surprise | Arizona Public Service | $14,750 | $1,225 | 12.0 years |
Your payback depends on your bill and utility. Enter your ZIP for your own numbers:
More Arizona companies by systems installed: Arizona solar installers (57).
Check a Arizona solar company's license
- Contractor licenses: Arizona Registrar of Contractors.
Checked on 2026-09-13. How I calculate.
Have a quote already?
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