Solar in Arizona
Key Solar Metrics
15.3¢/kWh
6.7 peak sun hours
1,177 kWh/kW
Net Billing
9 active programs
Residential Solar and Wind Energy Systems Tax Credit
Mixed · SolarAPP+
Major Utilities
Solar Landscape in Arizona
Arizona's utility landscape is dominated by three major providers. Arizona Public Service (APS) is the state's largest investor-owned utility, serving approximately 1.3 million customers across most of the state outside of metro Tucson. Salt River Project (SRP) is a quasi-governmental utility serving the greater Phoenix metro area with about 1.1 million customers. Tucson Electric Power (TEP) serves the Tucson metro area with approximately 440,000 customers.
All three major utilities have transitioned from traditional net metering to net billing, with export rates significantly below retail. APS and TEP are regulated by the Arizona Corporation Commission, while SRP operates as a political subdivision and sets its own rates. SRP's solar rates have been particularly controversial, with critics arguing they undervalue solar exports.
Permitting
Arizona is one of the most solar-friendly states for permitting. In 2024, the state legislature passed HB2301, which mandates that all municipalities and counties adopt instant permitting processes for residential solar installations by January 1, 2026. This builds on years of progressive permitting reform in the state.
Multiple Arizona jurisdictions already participate in the DOE's SolarAPP+ program for automated permit approval. Phoenix, the state's largest city, issues SolarAPP+ permits instantly for eligible residential PV systems. Maricopa County charges a flat $300 fee with same-day SolarAPP+ approval, while Tucson and Pima County also accept SolarAPP+ at $94.
Permitting jurisdiction is primarily at the city/county level, with the state providing the framework through HB2301. The typical residential solar permitting timeline in Arizona ranges from 1-3 business days for SolarAPP+ jurisdictions to 1-2 weeks for standard over-the-counter permits. Full installation timelines from contract to activation are typically 6-10 weeks.
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Solar Incentives & Rebates
Some incentive data is provisional and subject to verification. Programs may change — check official sources before making decisions.
State Programs
Residential Solar and Wind Energy Systems Tax Credit
25% of installed cost, up to $1,000 per residence
Solar Energy Device Property Tax Exemption
100% property tax exemption on the added home value from solar energy devices
Arizona Net Billing for Solar
Excess solar exported to grid credited at utility-specific avoided cost rates (typically $0.04-0.09/kWh). 10-year rate lock from interconnection date.
Arizona Interconnection Standards
Arizona Corporation Commission interconnection rules for distributed generation. Simplified process for systems under 10 kW.
Arizona Solar Rights Law
Prohibits HOAs and local governments from restricting solar installations.
Arizona Solar Permitting Standards (HB2301)
HB2301 mandates instant permitting for residential solar in all Arizona jurisdictions by January 1, 2026. SolarAPP+ active in Phoenix, Maricopa County, Tucson.
Utility Programs
Mohave Electric Cooperative SunWatts Rebate
$0.05 per watt rebate for residential solar installations
APS Net Billing Export Rate
APS Resource Comparison Proxy (RCP) export credit rate ~$0.069/kWh. Rate locked for 10 years.
TEP Net Billing Export Rate
TEP solar export credit rate of $0.057/kWh under net billing tariff.
APS Resource Comparison Proxy (RCP)
- Policy Type
- Net Billing
- Credit Type
- Avoided Cost
- Annual Credit Rollover
- No
- Effective Date
- October 1, 2017
Run the Numbers for Arizona
Solar in Arizona costs $2.14–$3.21 per watt
National average: $3.36/W
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