Solar by State / Arizona
Data last verified: August 2026Is Solar Worth It in Arizona in 2026?
The honest answer depends on four numbers that are unique to Arizona: your electricity rate, your solar production, your net metering policy, and your state incentives. Here are the real figures, with sources and dates.
Arizona Solar Snapshot (2026)
| Residential electricity rate | 15.6¢/kWh (EIA, 2026 YTD May) |
| Solar production | ~1755 kWh per kW installed per year (NREL PVWatts v8) |
| Net metering | Net billing (exports below retail) — export ~7¢/kWh |
| State tax credit | 25% state income tax credit |
| Rebates / performance | None |
| SREC market | No active SREC market |
| Property tax exemption | Yes |
| Sales tax exemption | No |
Estimate Your Own Payback in Arizona
The table above is a 6 kW benchmark. Your home is different — use the Solar ROI Calculator with Arizona pre-loaded to get your exact payback, or the 30-second worth-it quiz for a go/no-go verdict.
Arizona FAQ
Does Arizona have a solar tax credit in 2026?
Arizona offers 25% state income tax credit. The federal residential credit (Section 25D) expired Dec 31, 2025 and does not apply to 2026 installations.
What is net metering like in Arizona?
Arizona uses net billing with exports around 7¢/kWh. This means exports are credited below retail, so using or storing your power matters.
Is solar worth it in Arizona after the federal credit ended?
At a typical 2.55/W installed cost and 15.6¢/kWh electricity, a 6 kW system in Arizona has an estimated payback of about 10.6 years (rank #40 of 51 states). That is in the middle of the pack — workable for long-term owners.
Compare Arizona with Another State
See how Arizona stacks up against Nevada — or use the state comparison tool for a side-by-side of any two or three states.
Popular guides
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What changed when the federal 25D credit expired.
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How much solar costs in every state this year.
Read →Net Metering vs Net Billing
Why your export credit matters as much as your rate.
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