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Arizona is one of the sunniest states and has the most potential for its solar market. Solar energy provided the state with more power than all of Arizona’s other non-hydroelectric renewable energy sources combined.

Solar Incentives

The Residential Arizona Solar Tax Credit reimburses you 25% of the cost of your solar panels, up to $1,000, right off your personal income tax in the year you install the system. Also, you aren’t required to pay any sales tax on the purchase of your solar system.The Energy Equipment Property Tax Exemption means you won’t have to pay any additional property taxes on the value you are adding to your home by investing in solar panels. And, with the Investment Tax Credit (ITC), you can reduce the cost of your PV solar energy system by 26%.

Frequently asked questions


Growth Projection and Ranking: 5,277 MW over the next 5 years (ranks 6th)

Arizona exempts the additional value a solar installation adds to your home from your property taxes, meaning you don’t pay extra taxes just because you have solar panels.
Solar panels can increase your home’s value up to 2%-3%. Leasing solar panels will decrease your home’s value by 3%-8% in Phoenix, Arizona.
One study confirmed that solar installations increase a home’s resale value by up to $5,911 for each kilowatt of solar panels installed, and another estimated an increase of 4.1% of the home’s value.

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