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?

At 6.5 peak sun hours, a 7.3 kW system in Phoenix produces about 13,855 kWh a year. With $0 federal credit, this model puts payback near 8.6 years and about $47,784 over 25 years after a $18,345 net cost, including Arizona's state incentive. It is a model, not a quote.

::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. With $0 federal credit and the 25% Arizona credit, the net cost in this model is roughly $18,345. Use the calculator on this page with your actual APS bill.

Updated October 2026 · APS · Arizona

Phoenix homeowners installing in 2026 cannot claim the federal residential credit. What remains is 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 8.6 years.

Federal residential credit

AZ State Credit

25%

Local Utility

APS

Net Metering

Active

Est. System Size

7.3 kW

Annual Production

13.9k kWh

Net cost ($0 federal)

$18,345

Est. Payback

8.6 yrs

::PHOENIX_CALCULATOR

::INPUT_PARAMETERS

Monthly Electric Bill (USD)

State

Roof (sq ft, optional)

Solar Incentives Available in Phoenix

The federal residential credit does not apply to a Phoenix system installed in 2026. Arizona still lists a 25% state income tax credit (up to $1,000). 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 federal residential credit is $0. The Arizona state credit in this model is $1,000. Net cost in this model is about $18,345, with payback around 8.6 years. Those figures use $0 federal credit.

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Frequently Asked Questions

Phoenix homeowners installing in 2026 cannot claim the federal Residential Clean Energy Credit. This dataset still lists a 25% Arizona state tax credit (up to $1,000). APS offers net metering. Phoenix's 6.5 peak sun hours are among the highest of any major US city — each panel produces more here than almost anywhere.