Arizona is drenched in sunlight, receiving about twice the average daily kilowatt-hours as any other state. All that sunlight coupled with supportive solar policies has landed Arizona among the top solar states in the country – third only to California and North Carolina in total installed solar electric capacity, according to the U.S. Energy Information Administration. Start your Arizona solar panel research below, with detailed information on installers, electricity costs, and various research resources.

Arizona’s Solar
Report Card


To determine a grade for each state, our researchers and solar experts analyzed data on crucial solar-advancement criteria from the following sources:

We determined a rank from 1 to 10 for each state in each category. We then combined the scores with the following weights and assigned an overall grade for each state. Our goal is to encourage those considering solar for their homes to get a basic understanding of solar potential in their areas and discover the best opportunities for clean energy available.

Incentives & Rebates, 40%

Electricity Rate, 15%

Renewable Energy Policy, 30%

Interconnection Ease, 5%

Photovoltaic Potential, 10%

Arizona Electricity: Comparison Cost Trends

Electricity is crucial in Arizona, with six in 10 households relying on it as their primary source of heating and a whopping 25 percent of the state’s residential energy taken up by air conditioning, more than four times the national average. Still, the average residential price for electricity is $0.124 per kWh, which is slightly lower than the national residential average of $0.13 per kWh, according to the U.S. Energy Information Administration. So far, about 9 percent of the state’s electricity is generated from renewable resources, mostly in hydroelectric power from the Glen Canyon and Hoover dams but increasingly solar as well. Arizona is in the top 10 states in terms of solar growth projection, according to the EIA.

Cost of Residential Electricity

Data from U.S. Energy Information Administration
*as of Q3 2015

Arizona Solar Energy
Program Library

Policies, Rebates & Incentives for Solar Users in Arizona

For all of its solar potential, Arizona’s Renewable Portfolio Standard calls for a moderate 15 percent of total energy be from renewable sources by 2025. Toward that end, Arizona also finds itself grappling with issues facing other solar states. Increases in utility fees have resulted in a drop in solar installations, and utilities are considering demand charges on solar customers to reduce loads during peak times. However, the state offers the Arizona Public Service Renewable Energy Incentive Program, which provides a rebate of up to $2 per watt of solar energy used. A variety of other rebate programs are available for solar panels in Arizona as are sales and property tax exemptions and a solar tax credit.


Mohave Electric Cooperative – SunWatts Renewable Energy Incentive Program:

Mohave Electric Cooperative offers an incentive of $0.20/W for solar photovoltaics systems that are up to 50 kW or 125 percent onsite load (whichever amount is less). The maximum amounts allowed are $3,000 for residential PV systems and $5,000 for commercial PV systems.

Duncan Valley Electric Cooperative – SunWatts Rebate Program:

Duncan Valley Electric Cooperative provides a rebate of $1 per watt for PV systems that are 10 kilowatts (kW) or less. The maximum amount is $10,000 or 40 percent of the system’s cost — whichever amount is less.

None for residential specifically

None for commercial specifically


Net Metering:

Allows commercial and residential utility customers with solar technologies to receive credits on their account for the energy their systems generate.

Interconnection Guidelines:

Allows those with PV systems to connect to an energy distribution facility.

SRP – Net Metering:

The Salt River Project (SRP) allows those with solar energy systems to connect to the SRP’s grid and receive a credit for excess generation during a billing period.

Solar & Wind Equipment Certification:

Requires those that sell or install solar energy systems in Arizona to provide a warranty to customers.

Solar Construction Permitting Standards:

This legislation requires that those who want to install PV systems on commercial or residential properties obtain a permit prior to installation.

Solar Rights:

This law protects the rights of homeowners to install a solar energy device on their property without interference from a homeowner’s association. Also, homeowners can receive reimbursement for reasonable attorney’s fees if they win litigation with a homeowner’s association regarding a solar device on the property.

City of Tucson – Solar Design Requirement for Homes:

This law requires that all homes in Tucson have PV systems installed or are built to allow installation at a later date.

None for commercial specifically


Arizona homeowners with solar energy devices receive a tax credit for 25 percent the amount of the device. The maximum credit allowed is $1,000.

Commercial properties can receive a tax credit for solar energy systems of up to 10 percent of the installation costs, not to exceed $25,000 per building or $50,000 per business annually. Energy product manufacturers that expand or establish a business in Arizona can also receive a property tax credit for up to 10 percent. There is a statewide annual cap of $70 million per company.

Renewable Energy Production Tax Credit (Corporate) – Qualified renewable energy systems installed on or after December 31, 2010, may be eligible based on the amount of electricity produced annually for a 10-year period. The tax credit for PV and solar thermal electric systems varies by year of electricity production.



The Arizona Solar and Wind Equipment Sales Tax Exemption allows owners of eligible renewable energy systems to receive a 100 percent exemption on sales tax for the unit. The Arizona Department of Revenue also offers the Energy Equipment Property Tax Exemption, which provides an exemption of 100 percent of the increased value of the system.

None for residential specifically

Property Tax Assessment for Renewable Energy Equipment – Renewable energy equipment owned by utilities and other entities operating in Arizona is assessed at 20 percent of the “taxable original cost” after deducting depreciation.

Solar Panels in Arizona: Contractor Directory

With all of Arizona’s sun, it’s not surprising that there are 400-plus solar companies in the state providing solar products and services including solar system design and installation, sales and distribution and manufacturing solar components. Installation prices in Arizona have dropped 15 percent in the past year, according to the Solar Energy Industries Association, making it faster for solar systems to pay for themselves and providing even more incentives for homeowners to go solar. Here is a list of just some of the solar panel contractors in Arizona:

Where it operatesStatewide

Year of opening1998

Where it operatesMaricopa County

Year of opening2001

Where it operatesGoodyear, Phoenix, Tucson, Scottsdale and surrounding areas

Year of opening2007

Where it operatesPhoenix and the surrounding areas

Year of opening2004

Where it operatesMaricopa County

Year of opening2000

Where it operatesMaricopa County

Year of opening2007

Where it operatesMaricopa, Pinal, Gila, Navajo and Yavapai counties

Year of opening1996

Where it operatesNorthern counties

Year of opening1979

Where it operatesStatewide

Year of opening1975

Where it operatesNorthern counties

Year of opening1979

Where it operatesMaricopa County

Year of opening1978

Where it operatesMaricopa, Pinal and Yavapai counties; California

Year of opening1984

Where it operatesPhoenix metro areas including Peoria, Glendale, Scottsdale, Paradise Valley, Fountain Hills, Carefree, Cave Creek, East Valley, West Valley, Surprise, Goodyear, Litchfield Park, Buckeye and Tucson

Year of opening1988

Where it operatesApache Junction, Avondale, Buckeye, Carefree, Casa Grande, Chandler, Fountain Hills, Goodyear, Gilbert, Glendale, Maricopa, Mesa, Peoria, Phoenix, Queen Creek, Scottsdale, Sun City, Surprise and Temp.

Year of opening2010

Where it operatesMaricopa, Yavapai, Pima and Coconino counties

Year of opening2008

Where it operatesBased in north Phoenix, operates statewide

Year of opening2007

Where it operatesThroughout Arizona, including Maricopa, Navajo, Pima, Pinal, Cochise, Yavapai and Coconino counties.

Year of opening2006

Where it operatesPima County

Year of opening2003

Arizona Solar Energy Resource List

Arizona Corporation Commission

Meet the commissioners and find out about upcoming meetings and hearings for the board that regulates rates and services of the state’s public utilities

Arizona Solar Center

Explore what the ASC calls “your guide to solar in Arizona,” including technology, economic benefits, solar and sustainability calculators, training and education, and government policy.

Arizona State University – Solar Power Lab

Learn about solar technology research at Arizona State University and read an ebook about solar photovoltaics.

Arizona State Legislature

Track legislation affecting solar energy, locate upcoming meetings and hearings on solar measures and stay current.

Arizona Goes Solar

Find out about the solar options available to homeowners with information from the Arizona Corporation Commission and the regulated electric utilities in Arizona.

DSIRE Incentives Database – Arizona

Find a comprehensive list of solar policies, financial incentives, including loans, grants and rebates, in a database monitored by the N.C. Clean Energy Technology Center.

U.S. Energy Information Administration – Arizona State Profile

Explore federal energy data, including state-by-state statistics on electricity consumption and rates as well as an analysis of Arizona’s solar usage and potential.