Solar Solar SME Arizona
Top-Rated Solar Installer in Arizona
Generate more power, save more money, and live more sustainably!
Arizona is the sunniest state in the country, with its residents enjoying over 300 days of sunshine every year. Increasingly, homeowners and businesses are turning to solar energy as a means of reducing their monthly bills, securing long-term savings, and enhancing their energy independence. And with Arizona solar incentives, tax exemptions, and flexible financing options, going solar has never been more affordable. Solar SME provides professional solar installation, premium equipment, and reliable battery storage solutions customized for Arizona homes and businesses. Looking for a trusted installer of solar systems in Arizona? We offer customized solar systems designed to deliver long-term savings, energy independence, and a strong return on investment.
How much can you save on electric bills with solar in Arizona?
The average Arizona energy consumer uses 1,597.00 kWh each month and 19164 kWh per year according to the state’s electric rates of 16 ¢/kilowatt-hour (kWh). As a resident of the sunniest state in the nation, likely, installing solar panels in Arizona will ultimately benefit you and your home. The average Arizona electricity user will require a 10.4-kilowatt (kW) solar panel system to offset 100% of their yearly electricity consumption of 19164 kWh due to the state’s high levels of sunshine. If you install a solar system, on average, you’ll break even on your solar investment in 7.53 years in AZ, at which point you may not owe anything on your electric bills. Additionally, adding a battery storage solution further enhances grid independence, and you can even earn with excess power generation.
25-year Savings
$62,880
10 Years
84%
Solar Financing Options in Arizona by Solar SME
Solar installation is a worthy investment; however, it may cost you higher to own your solar panel system. If you are unable to own due to any reason, like you are a renter or do not have enough cash in hand, some flexible solar financing options are available for you:
As the 30% tax credit is expiring, solar leases are emerging as the best alternative to take advantage of solar power. A typical Arizona residents spend about $250 per month on electricity. That adds up to $3,000 every year. Third-party financing requires you to pay a fixed monthly lease payment or per-kWh rate (PPA) for the solar energy produced by the system. According to the U.S. Department of Energy, this rate is 10% to 30% lower than your electric bills. As you are not the owner, the federal tax credit and other solar incentives' expiry will not impact your savings. However, it is vital to choose your solar leasing plans wisely. Solar SME, the top solar provider in Arizona, offers the best solar lease options for making your solar journey affordable.
Best Residential Solar Incentives and Rebates in Arizona
01- Residential Clean Energy Tax Credit
The federal solar tax credit is available to homeowners in Arizona who switch to solar power. The credit immediately lowers your federal income tax bill and is equivalent to 30% of the cost of installing solar panels. One of the biggest financial incentives for sustainable energy accessible to Arizonans is the solar tax credit. Arizona’s average solar system will receive a $6,300 federal solar tax credit. You can carry over the remaining credit to your taxes for the following year if your debt is less than the value of your tax credit. However, on July 4, 2025, President Trump signed legislation that eliminated the residential solar tax credit, effective January 1, 2026, nearly a decade before its original expiration date.
02- Credit for Solar Energy Devices
You will receive a credit towards your Arizona state income tax bill equal to 25% of the cost of your solar panel installation, up to a maximum of $1,000. You can install the system at your primary or secondary residence, but your annual claim is limited to $1,000. You can roll over unused credit for up to five years if your tax bill isn’t large enough to qualify for the full credit.
03- Arizona Solar Tax Exemptions
Solar panel systems are also exempt from taxes in Arizona. While the solar property tax exemption prevents you from paying a higher property tax for adding solar panels to your home, the solar sales tax exemption guarantees that you won’t have to pay a sales tax on your system. Get in touch with your county property assessor to confirm that your system is exempt. You must present documentation of your system’s entire cost. Specific information for your location should be provided by the assessor’s office.
04- Mohave Electric Cooperative SunWatts Renewable Energy and Rebate Program
The SunWatts Renewable Energy and Rebate Program is available to Mohave Electric Cooperative customers. You can earn up to $2,500 through the SunWatts incentive, or $0.05 for each watt of residential solar you intend to install. The typical solar panel installation in Arizona is 7,000 watts, or 7 kilowatts (kW). This indicates that the rebate program can generate about $350 for the average Mohave Electric customer.
Battery Storage Incentives in Arizona
Is net metering available in Arizona?
Although net metering is no longer available in Arizona, you can still take advantage of net billing if your solar panel installation is connected to the grid. Net billing is similar to net metering in that you receive credits when you transfer excess electricity from your solar panels to the grid. Your utility will apply the credits to your bill when you need to draw power from the grid when the sun isn’t shining. You won’t save as much on your electric bills with net billing, though, because the credits are significantly less valuable than with net metering. To take part in net metering, residential customers of some utility companies, including Arizona Public Service, Tucson Electric Power, and UniSource Energy Services, must register for their time-of-use rates. This implies that the time of day, day of the week, and season will all affect how much you pay for energy.
Utility |
Compensation Rate |
Maximum Credit Balance |
|---|---|---|
|
Arizona Public Service |
$0.06857/kWh |
$25 |
|
Tuscan Electric Power |
$0.0570/kWh |
$10 |
|
Tuscan Electric Power |
$0.0570/kWh |
$10 |
Commercial Solar Installation in Arizona
Commercial solar installation in Arizona is an effective way for businesses to combat all of the power challenges. Businesses can generate power using free and unlimited sunlight via commercial solar panels. Furthermore, using solar electricity combined with a reliable battery backup system like Tesla Powerwall 3 eliminates power disruptions. Hence, enabling smooth workflow and increased operational resiliency. Like residential solar installation, you are also eligible for a 30% federal tax credit for commercial solar systems. Additionally, High Performance Building Program, MACRS Depreciation, and PACE Financing options are available for business solar installation.
Why is it Worth it to Switch to Solar in Arizona?
Arizona is one of the sunniest states in the U.S., meaning solar panels here can generate a lot of electricity. All that solar energy, combined with the federal and state tax credits, can reduce your energy costs when you go solar in Arizona. Top reasons to switch to solar in AZ include:
Low Electric
Bills
Maximum Grid Independence
Flexible Financing Options
Increased Home Value
Earn Energy Credits/SREC Programs
The best way to determine how to maximize your solar savings in Arizona is to consult with a local solar installer. Solar companies near you can guide you with the best solar solutions and incentives in your area and can help you to get the most out of your solar investment.
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Our Customers are Getting Up to 90% Lower Electric Bills with
Solar SME Tailored
Solar Solutions
Solar SME provides its valuable clients with an exceptional solar experience by designing solutions according to its customers’ unique needs. Also, we hold a positive image in solar marketplaces like Energysage. Moreover, we are accredited with BBB, and our happy customers share their solar experience and highly recommend Solar SME for the best solar services in Arizona.
City: Phoenix, AZ
System Size: 5 kW
Annual Savings: ~$1,050–$1,250 per year
City: Tucson, AZ
System Size: 6.2 kW
Annual Savings: ~$1,250–$1,450 per year
City: Mesa, AZ
System Size: 7 kW
Annual Savings: ~$1,450–$1,650 per year
City: Chandler, AZ
System Size: 8.5 kW
Annual Savings: ~$1,700–$1,950 per year
City: Glendale, AZ
System Size: 9.8 kW
Annual Savings: ~$1,950–$2,200 per year
City: Scottsdale, AZ
System Size: 11 kW
Annual Savings: ~$2,250–$2,550 per year
Frequently Asked Questions
Absolutely. Arizona has some of the nation’s highest sunlight levels, making solar extremely cost-effective. Homeowners benefit from energy savings, reduced electricity bills, and long-term protection from rising utility rates. Solar systems also boost home value and offer excellent ROI statewide.
Yes. Homeowners can choose cash purchase, solar loans, HELOCs, or third-party financing options. Many Arizona installers offer low-interest solar loans, making it easier to install panels with little upfront cost and enjoy long-term savings.
Arizona no longer uses traditional net metering. Instead, utilities offer export rates, paying homeowners for excess solar energy sent back to the grid. These payments help reduce monthly bills, although rates vary by utility, such as APS or SRP.
Export rates vary by utility. APS and SRP pay a fixed rate per kWh for solar energy you send back to the grid. These rates update yearly and impact your system’s ROI, making proper system sizing important.
Look for a licensed, NABCEP-certified solar installer. Check reviews, warranty terms, equipment quality, and utility knowledge. A trustworthy installer like Solar SME will provide transparent pricing, accurate system design, and long-term support.