Solar & Net Metering Policy
Net metering is available in Arizona, allowing solar owners to send excess electricity back to the grid and receive credits on their utility bill. Utilizes a net billing structure based on the Resource Comparison Proxy (RCP). Arizona offers a state solar tax credit of 25% up to $1,000, which can be combined with the federal 30% Investment Tax Credit (ITC) for significant savings. Additional savings are available through a property tax exemption on the added home value and a sales tax exemption on solar equipment.
Net Metering Notes
Utilizes a net billing structure based on the Resource Comparison Proxy (RCP).
Tax Credit Details
Residential Solar Energy Tax Credit.
Utility Rebate Details
Select local utilities offer incentives, though many investor-owned utility rebates have phased out.
Does Arizona have net metering?
Yes. Arizona has net metering, which allows solar panel owners to receive credits for excess electricity sent back to the grid. Utilizes a net billing structure based on the Resource Comparison Proxy (RCP).
What solar tax credits are available in Arizona?
Arizona offers a state solar tax credit of 25% up to $1,000. Residential Solar Energy Tax Credit. This can be combined with the federal Investment Tax Credit (ITC), which provides a 30% credit on the cost of your solar system.
What is the federal solar tax credit and does it apply in Arizona?
The federal Investment Tax Credit (ITC) provides a 30% tax credit on the total cost of a solar installation. It applies in Arizona for qualifying residential and commercial installations. The ITC is claimed on your federal tax return in the year the system is installed.
Is solar equipment exempt from property tax in Arizona?
Yes. Arizona offers a property tax exemption for solar installations, meaning the added home value from your solar system is not subject to additional property taxes.
Is there a sales tax exemption for solar in Arizona?
Yes. Arizona exempts solar energy equipment from state sales tax, which can save several percent on the upfront cost of your system.
Does Arizona have an SREC market?
Arizona does not currently have an active SREC market. Solar owners in Arizona cannot generate additional income through SREC sales at this time.
Are there utility rebates for solar in Arizona?
Yes. Utility rebates are available in Arizona. Select local utilities offer incentives, though many investor-owned utility rebates have phased out.
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Official Source
Arizona Public Utility Commission
Last verified: 2026-03-24 · Always confirm current incentives before installing solar.