AZ · Solar + Battery

Solar + battery installation in Arizona

Battery-coupled solar is the package that closes most often in Arizona. Federal Clean Tech ITC (30%) on storage stacks with state net metering. Free quote, ~2 minutes.

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7.5 kW
Average system size
$2.60/W
Average cost (USD)
9 yrs
Average payback
178+
Local installers

Why solar in Arizona

Arizona is one of the sunniest states in the country, with desert sun-hours that let a solar array generate exceptional output year-round. Traditional one-to-one net metering has been replaced by net-billing 'export rate' or 'resource comparison proxy' riders at the major utilities, so exported solar is credited below the retail rate and the value of self-consumption (and batteries) is higher. The 30% federal Residential Clean Energy Credit (Section 25D) ended on December 31, 2025 - cash and loan purchases in 2026 no longer receive it, though leased / PPA systems can still indirectly access the surviving 30% commercial Section 48E credit. Arizona's own state income tax credit (25% of cost up to a $1,000 lifetime cap) remains active, and solar equipment is still exempt from state sales tax and excluded from property tax. Thanks to very high production, a typical 7.5 kW Arizona system pays back in roughly 9-12 years for a cash purchase in 2026.

Incentives & rebates

Net metering: Net billing / export rate riders

Arizona retired full retail net metering. Major utilities now use net billing with an export (or resource-comparison-proxy) rate that credits exported solar below the retail rate and steps down over time. This raises the value of self-consumption and makes battery storage increasingly attractive.

Related Arizona resources

Battery + Storage

Why solar + battery in Arizona

Arizona is one of the sunniest states in the country, with desert sun-hours that let a solar array generate exceptional output year-round. Traditional one-to-one net metering has been replaced by net-billing 'export rate' or 'resource comparison proxy' riders at the major utilities, so exported solar is credited below the retail rate and the value of self-consumption (and batteries) is higher. The 30% federal Residential Clean Energy Credit (Section 25D) ended on December 31, 2025 - cash and loan purchases in 2026 no longer receive it, though leased / PPA systems can still indirectly access the surviving 30% commercial Section 48E credit. Arizona's own state income tax credit (25% of cost up to a $1,000 lifetime cap) remains active, and solar equipment is still exempt from state sales tax and excluded from property tax. Thanks to very high production, a typical 7.5 kW Arizona system pays back in roughly 9-12 years for a cash purchase in 2026.

✓ Federal Clean Tech ITC 30% on storage ✓ Outage resilience

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How payback works in Arizona

System cost
$19,500
Estimated net cost
$19,500
Estimated payback
~12.0 years
25-year net savings
~$21,000

These figures are illustrative; your actual quote reflects your roof, sun exposure, and local utility rates.

Cities we serve in Arizona

14cities with vetted local solar + battery installers.

Frequently asked questions

How much do solar panels cost in Arizona?
Arizona solar averages about $2.60 per watt installed, so a typical 7.5 kW system runs roughly $18,000-$21,000. The 30% federal Residential Clean Energy Credit ended December 31, 2025 - cash and loan purchases in 2026 no longer receive it (leased/PPA systems can still indirectly capture 30% via the commercial 48E credit). The Arizona state credit can still take up to $1,000 off your tax bill.
Does Arizona still have net metering?
No. Arizona moved to net billing, where exported solar is credited at an export rate below the retail price. This makes using your own solar power (and pairing with a battery) more valuable than exporting it.
What solar incentives does Arizona offer?
Arizona has a 25% state income tax credit capped at $1,000 (lifetime), a state sales tax exemption on solar equipment, and a property tax exclusion for the added home value. The 30% federal Residential Clean Energy Credit (Section 25D) ended for purchases in 2026, but leased/PPA systems can still indirectly access the surviving 30% commercial Section 48E credit through their third-party owner.
Is solar worth it in Arizona?
For most homes, yes. Arizona has some of the best sun in the U.S., so panels produce more energy per watt installed; combined with the state credit and tax exemptions, typical payback is about 9-12 years for a cash purchase in 2026, even under net billing.