Does APS offer net metering in Phoenix?

Yes — APS credits the solar you export to the grid in Phoenix under Arizona's modified net metering, valued at ~70–90% of retail. That credit is what lets a well-sized system zero out most of your annual bill.

Is solar worth it in Phoenix?

For most owners, yes. At 6.5 peak sun hours, a 7.3 kW system in Phoenix produces about 13,855 kWh a year, pays back in roughly 6.1 years, and returns around $53,588 over 25 years after the $12,542 net cost — driven by the 30% federal credit and Arizona's state incentives.

::PHOENIX_INCENTIVES // 2026

PhoenixSolar Incentives 2026: Rebates, Tax Credits & Net Metering

Q: How much do solar panels cost in Phoenix?

The 7.3 kW system that fits a typical Phoenix home (about a $160/month bill) costs around $19,345 before incentives. After the 30% federal credit and the 25% Arizona credit, the net cost is roughly $12,542. Use the calculator on this page with your actual APS bill for an exact figure.

Updated June 2026 · APS · Arizona

Phoenix homeowners stack the 30% federal tax credit with the 25% Arizona state credit and APS net metering. At 6.5 peak sun hours a day, a home with a $160/month bill (about 1,143 kWh) needs roughly a 7.3 kW system — 19 panels — and pays back in about 6.1 years.

Federal Credit

30%

AZ State Credit

25%

Local Utility

APS

Net Metering

Active

Est. System Size

7.3 kW

Annual Production

13.9k kWh

Net Cost (after credits)

$12,542

Est. Payback

6.1 yrs

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Monthly Electric Bill (USD)

State

Roof (sq ft, optional)

Solar Incentives Available in Phoenix

Solar incentives in Phoenix come in three layers. First, every homeowner qualifies for the 30% federal Residential Clean Energy Credit on the full installed cost, claimed on IRS Form 5695. Second, Arizona adds a 25% state income tax credit (up to $1,000) that stacks on top. Third, APS sets the local rules for crediting the solar power you export.

Phoenix's 6.5 peak sun hours are among the highest of any major US city — each panel produces more here than almost anywhere.

How Much Solar Phoenix Homes Produce

Phoenix gets 6.5 peak sun hours a day, so each 1 kW of panels produces about 1,898 kWh per year here. A 7.3 kW system — the size that fits a typical $160/month APS bill — generates roughly 13,855 kWh annually, worth about $1,940 in avoided electricity in year one and more as rates rise.

APS Net Metering in Phoenix

APS credits excess solar generation from Phoenix homes under Arizona's modified net metering (~70–90% of retail). A right-sized system can bring net annual electricity costs close to zero. See full Arizona net metering rules →

How Much Do Solar Panels Cost in Phoenix?

At Arizona's 2026 average of $2.65/watt, the 7.3 kW system most Phoenix homes need runs about $19,345 before incentives. The 30% federal credit takes off $5,804, and the Arizona state credit another $1,000 — landing the net cost near $12,542, with payback around 6.1 years.

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Frequently Asked Questions

Phoenix homeowners can claim the 30% federal Residential Clean Energy Credit, the 25% Arizona state tax credit (up to $1,000), and net metering through APS. Phoenix's 6.5 peak sun hours are among the highest of any major US city — each panel produces more here than almost anywhere.