30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·Commercial: Section 48E up to 50%·C&I Payback: 4–7 Years·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·Commercial: Section 48E up to 50%·C&I Payback: 4–7 Years·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·Commercial: Section 48E up to 50%·C&I Payback: 4–7 Years·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·Commercial: Section 48E up to 50%·C&I Payback: 4–7 Years·
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PhoenixSolar Incentives 2026: Rebates, Tax Credits & Net Metering

Updated June 2026 · APS · Arizona

Phoenix homeowners stack the 30% federal tax credit with the 25% Arizona state credit and APS net metering. With 6.5 peak sun hours a day and bills averaging $160/month, the typical Phoenix system pays back in about 6.4 years.

Federal Credit
30%
AZ State Credit
25%
Local Utility
APS
Net Metering
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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.

APS Net Metering in Phoenix

APS credits excess solar generation from Phoenix homes under Arizona's net metering rules, at roughly ~70–90% of retail of the retail rate. 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, a typical 8 kW system in Phoenix runs about $21,200 before incentives. After the 30% federal credit and the Arizona state credit, the net cost drops to roughly $13,840 — the real out-of-pocket number for most Phoenix homeowners.

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Frequently Asked Questions

Phoenix homeowners can claim the 30% federal Residential Clean Energy Credit, the 25% Arizona state tax credit, and net metering / solar buyback 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.

Solar Incentives in Other Arizona Cities

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Federal
The 30% federal ITC →
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