Solar incentives / Arizona
Federal, state and utility programs that reduce the cost of a home solar or battery system in Arizona. Each record links to its source. Programs change often and can run out of annual funding — confirm current terms before relying on a number.
| Program | Value | Type | Expires | Source |
|---|---|---|---|---|
| Federal Residential Clean Energy Credit (Section 25D) federal · United States |
30% of eligible system cost for property placed in service 2022–2025; 0% for installs after 2025-12-31 (terminated by the 2025 budget-reconciliation law). | tax credit | 2025-12-31 | IRS — Residential Clean Energy Credit ↗ verified 2026-08-30 |
| Arizona Residential Solar Energy Credit state · Arizona |
25% of system cost, capped at $1,000, one-time. | tax credit | — | Arizona DOR ↗ verified 2026-08-30 |
| Solar Equipment Sales-Tax Exemption state · Arizona |
Exempt from state transaction privilege (sales) tax. | exemption | — | DSIRE ↗ verified 2026-08-30 |
| Energy Equipment Property-Tax Exemption state · Arizona |
Added home value from the system is exempt from property tax. | exemption | — | DSIRE ↗ verified 2026-08-30 |
Arizona Residential Solar Energy Credit: 25% of system cost, capped at $1,000, one-time. Solar Equipment Sales-Tax Exemption: Exempt from state transaction privilege (sales) tax. Energy Equipment Property-Tax Exemption: Added home value from the system is exempt from property tax.
For an average Arizona bill, a whole-home system runs about $21,500 net of modeled incentives, with roughly a 8.6-year payback. Run it with your own bill in the Solar Decision Engine.
Arizona Residential Solar Energy Credit: 25% of system cost, capped at $1,000, one-time. Solar Equipment Sales-Tax Exemption: Exempt from state transaction privilege (sales) tax. Energy Equipment Property-Tax Exemption: Added home value from the system is exempt from property tax. The federal residential tax credit is 30% for systems placed in service through 2025 and 0% afterward.
Yes — see the table above for the current rate and cap.
Only for residential systems placed in service on or before 2025-12-31. A 2026+ residential install does not qualify for the Section 25D credit. Details →