Solar SME Arizona
Top-Rated Solar Installer in AZ
Generate more power, save more money, and live more sustainably!
480-573-8988
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 12.69 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
~$38,038
Payback Period
12.69 Years
Electricity Offset
Up to 100%
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:
The best option for maximizing the benefits of a solar energy system is ownership. When you own, you are eligible for solar incentives which are available to offset your solar installation cost. Also, there is no loan paperwork, no interest calculations, no increasing lease payments, and no monthly payments after installation. Additionally, your home value will also go up by 7%-14%.
Solar loans are the best option for you if you want to take full advantage of a solar PV system but do not have enough investment to buy one. With a solar loan program, you will make fixed monthly payments for 5-25 years while benefiting from instant energy savings. It provides cost predictability, unlike utility bills or lease escalators, which rise over time. The best part is that the lending rate is down to 4.0% - 4.25%. Furthermore, you can avail all solar incentives and solar tax credit in Arizona with loan financing. A local solar installation company, like Solar SME, can help you to go solar with 0% APR option.
Solar leases and power purchase agreements (PPAs) can offer Arizona homeowners an alternative way to access solar without purchasing a system outright. Under third-party financing, you typically make a fixed monthly lease payment or pay a predetermined rate per kilowatt-hour for the electricity produced.
Arizona homeowners can explore these options to potentially reduce their electricity expenses while avoiding the upfront cost of system ownership. However, lease and PPA terms vary, so it is important to compare the contract length, payment structure, escalation clauses, maintenance responsibilities, and projected savings before choosing a plan.
Best Residential Solar Incentives and Rebates in Arizona
Arizona offers some of the best solar and battery incentives and local rebates in the country. As electric rates surge daily, going solar can result in substantial savings. Let’s have a look at the top solar energy programs in Arizona:
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.
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.
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
Although there are no state-specific battery incentives available in Arizona, however, batteries are an effective means to protect yourself from blackouts and increase your energy independence. Since Arizona doesn’t offer net metering, batteries can also help you get the most out of your solar panels. Instead of sending extra solar energy to the grid, you can utilize it to store it for us in the future. By doing this, you may be able to prevent bill credits that are less than the retail rate. However, the electric cooperative is offering battery rebates to Mohave Electric customers. A $500 reimbursement is available to customers who install batteries with a minimum power capacity of at least 5 kWh. The battery must feature programmable controls, WIFI, and be unable to be charged during peak hours to qualify for this incentive.
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.
Commercial Solar Installation in Arizona
Commercial solar installation in Arizona can help businesses address rising energy costs, grid dependence, and power reliability challenges. Commercial solar panels allow businesses to generate electricity from Arizona’s abundant sunlight, while pairing solar with battery storage can provide backup power during outages and support uninterrupted operations.
Eligible commercial solar projects may also benefit from available federal incentives, MACRS depreciation, and financing options such as PACE, depending on the project and applicable requirements.
Why is it Worth it to Switch to Solar in Arizona?
Arizona is one of the sunniest states in the U.S., giving solar panels excellent potential to generate clean electricity. With abundant sunshine and available state incentives, going solar can help reduce energy costs and provide greater control over your electricity use. Here are the top reasons to switch to solar in Arizona:
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: 5kW
Annual Savings: ~$1,050–$1,250 per year
City: Tucson, AZ
System Size: 6.2kW
Annual Savings: ~$1,250–$1,450 per year
City: Mesa, AZ
System Size: 7kW
Annual Savings: ~$1,450–$1,650 per year
City: Chandler, AZ
System Size: 8.5kW
Annual Savings: ~$1,700–$1,950 per year
City: Glendale, AZ
System Size: 9.8kW
Annual Savings: ~$1,950–$2,200 per year
City: Scottsdale, AZ
System Size: 11kW
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.