As an increasing number of homeowners embrace solar panels every year, you may be left wondering, is solar worth it in Arizona? While solar panels are likely to be a good fit for most homeowners in Arizona experiencing high energy costs, we encourage every homeowner to consider these factors before purchasing solar panels.

Reasons Why Solar Is Worth It in Arizona

Arizona averages nearly 300 sunny days out of the year and has some of the sunniest cities in the US. All that abundant sunshine will ensure your solar energy system produces clean and efficient solar power. If you want a better estimate of how many hours of sunlight your home receives, you can calculate the peak sun hours for your area.

Save Money on Your Electric Bill

There’s no getting around it, keeping your home cool and comfortable during summer temperatures can bring high electric costs. Now you can reduce the amount of electricity consumed at home or invest in solar panels. While the amount of savings may vary, you can consult a solar specialist to determine your energy usage and discuss a solar energy system that can meet your saving goals.

Arizona solar incentives, tax credits

Arizona is one of the best states for solar incentives, making solar panels more affordable and cost-effective for homeowners. Solar incentives available in Arizona include:

Federal Solar Tax Credit

Homeowners can claim 30% of the total cost of their solar panel system with the Federal Solar Tax Credit (or ITC).*

Residential Arizona Solar Tax Credit

Potentially receive 25 percent off of the cost of your panels on your state income tax (up to a maximum of $1,000) in the year you install the system.

Solar Equipment Sales Tax Exemption

In Arizona, solar energy systems are exempt from sales tax. (Psst, that includes solar batteries).

Energy Equipment Property Tax Exemption

Another benefit of solar panels in Arizona is they allow you to improve your home’s value without the burden of an increase in property taxes.

Tip: Be sure to read our guide on Arizona solar incentives to make sure you’re fully informed on all the incentives you may be eligible for.

Does Solar Increase Home Value in Arizona?

That’s right, according to a 2019 analysis by Zillow, solar panel systems do intentionally increase home value. Energy-efficient features were found to be important to more than 80% of home buyers. That makes solar panels a major selling point! According to Zillow, homes with solar-energy systems sold for 4.1% more on average than comparable homes without solar power during 2018. In the United States, that can increase the median home value for a home with solar panels to more than $9,000.

home on well manicured arizona lawn

Does Arizona Have A Solar Rebate?

Yes, the state of Arizona does have solar rebates in place by individual utility companies who participate. These rebate programs help offset the cost of customers who switch to solar energy.
Some of the participating Arizona solar rebate programs include:

Mohave Electric Cooperative – Renewable Energy Incentive Program Utility Rebate Program
Duncan Valley Electric Cooperative – SunWatts Rebate Program Utility Rebate Program
Salt River Project Battery Storage Incentive Program Utility Battery Rebate

Does Arizona have Net Metering?

Arizona has what is called net billing instead of net metering. This is also known as a feed-in tariff. With net billing, the utility company credits you as the customer for any excess energy you send back to the grid that your solar panels overproduce.

The difference between net billing and net metering is that with net billing the utility company does not have to give you credits that amount to the retail rate of energy. They are allowed to credit you at a lower rate and that number is up to them. These credits still add up though and you are able to apply them to future bills when you might need to use grid energy at night, during the winter, or whenever.

Arizona Solar Access Rights

Arizona is a favorable place to go solar because local and state governments protect the rights of homeowners to pursue cleaner energy options. Currently, Arizona ranks fourth among the states in solar-powered electricity generation!

Below are the solar access laws in Arizona:

  • protect individual homeowners’ private property rights to solar access by dissolving any local covenant, restriction or condition attached to a property deed that restricts the use of solar energy.
  • prohibit HOAs from outlawing the installation of solar panels.

These laws help avoid roadblocks and red tape that may make it harder to go solar in different parts of the country – but not in Arizona!

beautiful capitol building of arizona on a sunny day

ADT Solar, Your Trusted solar company in Arizona

It’s no small decision to gain more independence from the utility company and produce energy for yourself, but we’re here to make the decision an easy one. ADT Solar is a dependable and trusted brand in solar energy installation.

Our guarantees protect your investment in solar for the long haul. We stand by our services and our top-of the-line products we install. Our power production guarantee can have you feeling confident you’re choosing the right solar company in Arizona to partner with for your home’s installation.

Are solar panels worth it in Arizona?

Yes, solar panels are worth it in Arizona. From generous incentives to plentiful sunshine, Arizona is a great place for homeowners to switch to solar. You can enjoy potential savings on your monthly power bill by producing your own solar energy.


*Tax and credits or incentives including those provided by federal, state, or local governments may change or end. This can impact the amount of money you might save. Consult a tax professional to understand any tax liability or eligibility for any tax credits that may result from the purchase of your solar system.

**If you have taxable income and own the system, you may qualify for the federal investment tax credit (ITC). It is your responsibility to determine your eligibility and to apply. Consult a qualified tax professional for assistance and details.