Arizona Solar Incentives in 2026: What Actually Saves You Money
Arizona homeowners face a major shift in 2026: the federal 30% solar investment tax credit and efficiency credit expire on January 1, 2026, with no phase-down or partial credit available. For systems installed after that date, the federal incentive is gone.
The good news is that Arizona's state and utility incentives—net-metering credits, rebates, sales-tax exemptions, and property-tax breaks—remain in place and often deliver substantial savings. Your actual return now depends entirely on which utility serves your home and which state and local programs apply to your address.
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The federal residential clean-energy credit under IRS §25D (30% of solar costs) and the efficiency credit under §25C (heat pumps, insulation, weatherization) both expired for systems placed in service on or after January 1, 2026. There is no partial credit, no carryover, and no phase-down—the incentive simply ends.
Arizona state incentives, utility-level net-metering rules, and local rebate programs were not affected by the federal change. These continue to operate as before and often represent the largest financial benefit available to homeowners. Your savings now depend on your specific utility and state programs, not federal law.
Where Arizona Incentives Still Live: Utility, State, and Local Programs
Arizona utilities offer net-metering or export-credit arrangements that credit you for excess solar energy sent to the grid. The terms, rates, and eligibility rules vary by utility and are regularly updated. Your utility's website is the authoritative source for current rates.
Arizona provides state-level incentives including sales-tax exemptions on solar equipment and property-tax exemptions on the added home value from solar installation. These are substantial and ongoing. Some utilities and local jurisdictions also offer rebates or performance-based incentives for solar, heat pumps, and weatherization.
Because incentives differ by utility service area and local jurisdiction, the fastest way to identify which programs apply to your home and calculate your actual savings is a personalized energy assessment. The authoritative, regularly-updated national database of all state and utility incentives is DSIRE (dsireusa.org).
Find Your Incentives in 3 Minutes: Free EnergyAI Assessment
The savings math is now local. A free EnergyAI assessment takes 3 minutes, analyzes your home's address, utility, and energy use, and returns your Energy Node Score and the single highest-leverage next step—whether that's solar, a heat pump, weatherization, or a utility rebate.
This assessment cuts through the complexity of state and utility programs and tells you exactly which incentive will save you the most money. Start your free assessment today to see what Arizona incentives apply to your home in 2026.
Frequently asked
Can I still get the 30% federal solar tax credit in 2026?
No. The federal residential clean-energy credit (IRS §25D) expired on January 1, 2026, for all systems placed in service on or after that date. There is no partial credit or phase-down. However, Arizona state incentives, utility net-metering credits, and local rebates remain available and can still deliver significant savings.
What incentives are still available in Arizona in 2026?
Arizona state sales-tax exemptions on solar equipment, property-tax exemptions on solar-added home value, utility net-metering or export credits (terms vary by utility), and utility or local rebates for solar, heat pumps, and weatherization. The authoritative list is DSIRE (dsireusa.org). A free EnergyAI assessment will identify which programs apply to your specific address and utility.
How much money can I actually save without the federal credit?
Savings depend entirely on your utility, state programs, and local incentives—not federal law. Net-metering credits, state tax exemptions, and utility rebates can be substantial, but the amount varies by address and utility service area. A free EnergyAI assessment calculates your specific incentives and savings in 3 minutes.
Sources
- IRS — FAQs on §25C/§25D under Public Law 119-21 (One Big Beautiful Bill)
- DSIRE — Database of State Incentives for Renewables & Efficiency (NC State)
- EnergySage — clean-energy cost & incentive guides
Incentive amounts change; figures verified 2026-07-02. This is educational information, not tax advice.
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