Solar Companies in Arizona
6.5 hrs/day
Peak Sun Hours
$0.13/kWh
Electricity Rate
$12,180
Avg. System Cost (6kW)
Arizona is one of the top solar states in the country, blessed with an average of 6.5 peak sun hours per day - the highest in the nation alongside parts of Nevada and New Mexico. The Grand Canyon State's combination of intense sunshine and growing electricity demand makes it a natural fit for rooftop solar. Cities like Phoenix, Tucson, and Scottsdale regularly rank among the best solar markets nationwide.
The state offers a 25% residential solar tax credit capped at $1,000, and solar installations are exempt from property tax increases - meaning your home value goes up without higher property taxes. Arizona's two major utilities, Arizona Public Service (APS) and Salt River Project (SRP), have moved away from traditional net metering toward export rate structures, where excess solar electricity is credited at a lower wholesale-adjacent rate rather than the full retail price. SRP also charges demand charges that can impact solar economics for some customers.
Despite the shift away from full net metering, solar remains highly cost-effective in Arizona. A typical 6kW system runs about $12,180 after the federal credit and can offset 80-100% of an average household's electricity consumption. With summer electricity bills frequently exceeding $300-400 for air conditioning alone, the payback period for most Phoenix-area homeowners is 6-8 years. Battery storage is increasingly popular to capture the value of peak-hour solar generation.
Solar Incentives in Arizona
Federal ITC: 30% tax credit on total system cost (through 2032)
Net Metering: Reduced
State Tax Credit: Yes
Arizona offers a 25% state tax credit (up to $1,000) on residential solar installations and a property tax exemption for the added home value from solar. APS and SRP offer time-of-use export rates rather than traditional net metering.