Newpowa State Solar Guide
Arizona has some of the best solar resources on the planet — Phoenix averages 6.5 peak sun hours a day with 299 sunny days per year. But there is no statewide net metering: utilities export at ~6 cents per kWh while you pay ~15 cents retail. That gap makes self-consumption the whole game. Here's what actually works for Arizona homeowners, off-grid acreage, and snowbird RV setups.
Three stacked tax breaks plus utility-specific net billing — no cash rebates.
Arizona offers a 25% state income tax credit on residential solar, capped at $1,000. Nonrefundable, but rolls forward up to 5 years if your tax bill is too low to absorb it in year one.
Solar equipment is exempt from Arizona state TPT (5.6%). Solar installations add zero assessed value to your property — no property tax increase, ever, even after you install.
APS exports at ~6.17¢/kWh (10-year rate lock for new enrollees). SRP and TEP run their own customer-generation plans. You save the full retail rate (~15¢) on power you use in real time — exporting excess barely pays.
Arizona's solar rules are set by the Arizona Corporation Commission and your utility — here are the authoritative channels.
Free shipping to all 48 states. Desert heat degrades cheap panels — high-temp rated gear pays off, and self-consumption hardware beats exporting.
The federal Residential Clean Energy Credit schedule changed under July 2026 federal law. Whether it applies to your purchase depends on timing — check the official IRS page (linked below) for your tax year before you budget.
Arizona ended statewide net metering in 2017. Utilities now run net-billing programs: APS credits exported power at the RCP rate (~6.17¢/kWh, locked 10 years for new enrollees), while you avoid the ~15¢ retail rate on every kWh you use on-site. The math favors a system sized to your daytime load — over-sizing to export just throws away 9 cents per kWh.
It's a 25% state income tax credit on the cost of a qualifying residential solar system, capped at $1,000. It's nonrefundable (it reduces what you owe, not a check you get back) but can carry forward up to 5 years if your tax bill is too low in the first year. It stacks on top of whatever federal credit applies.
The credit applies to qualified solar energy devices installed for on-site use, whether professionally installed or self-installed — but save your receipts and product invoices. The credit is claimed on Arizona Form 309, and the Department of Revenue may ask for proof of equipment. Newpowa panels, inverters, and charge controllers used in a permanent off-grid or grid-tied system generally qualify.
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