The quick answer
Arizona is one of the top solar states in the country, ranking about 4th nationally for installed solar capacity (SEIA). The average residential electricity rate is about 15.2 cents per kWh (EIA, as of May 2026), and a typical 7 kW rooftop system in Phoenix produces about 12,286 kWh a year (NREL PVWatts v8, August 2026). A 7 kW system runs roughly $15,400 to $20,300 before incentives, with a simple payback near 10 years. These Arizona solar statistics for 2026 are compiled and dated below.
Arizona homeowners weighing solar want real numbers, not a sales pitch, so this page gathers the ones that matter in one place, each dated and sourced. The average residential electricity rate here is about 15.2 cents per kWh (EIA, as of May 2026), and a typical 7 kW rooftop system produces about 12,286 kWh a year. Below you will find installed cost, simple payback, per-city production, how each utility handles net metering, and the current state incentives, updated for 2026.
Updated for 2026.
Key statistics: Arizona solar at a glance (2026)
Arizona pairs a modest 15.2 cents per kWh electricity rate with one of the strongest solar resources in the nation, so a typical 7 kW system produces about 12,286 kWh a year and pays back in roughly 10 years. Here are the headline numbers.
Key numbers (Arizona, 2026)
- National ranking: about 4th for installed solar capacity (SEIA)
- Average residential rate: 15.2 cents per kWh
- Typical system size: 7 kW
- Typical annual production: 12,286 kWh per year
- Typical installed cost: $2.20 to $2.90 per watt
- Estimated system cost: $15,400 to $20,300
- Simple payback: about 10 years
According to MySolarFY’s analysis (August 2026), a typical 7 kW system in Arizona produces about 12,286 kWh a year, offsetting power that costs about 15.2 cents per kWh. These are our own compiled figures for Arizona; see Methodology below for exactly how each was produced. For the statewide rules behind these numbers, see our Arizona solar guide.
| Metric | Value | Source (dated) |
|---|---|---|
| Average residential rate | 15.2 cents per kWh | EIA, as of May 2026 |
| Typical system size | 7 kW | MySolarFY, typical residential array |
| Typical annual production | 12,286 kWh per year | NREL PVWatts v8, as of August 2026 |
| Typical installed cost | $2.20 to $2.90 per watt | MySolarFY cost range, as of August 2026 |
| Estimated system cost | $15,400 to $20,300 | MySolarFY, 7 kW, as of August 2026 |
| Simple payback | about 10 years | MySolarFY analysis, as of August 2026 |
Every figure is dated and attributed. Rate is the EIA residential average for Arizona; production is a modeled NREL PVWatts v8 run for a 7 kW array; cost and payback are MySolarFY estimates for planning, not a quote. Confirm current terms before you decide.
Solar cost and payback by city in Arizona
A typical 7 kW system across Arizona’s major metros produces about 12,200 to 12,530 kWh a year and pays back in roughly 10 years, with sunny Tucson edging out the Phoenix valley. Production and payback vary within the state because the solar resource and the local rate shift by location. The table below models a 7 kW system for representative Arizona cities using NREL PVWatts v8. For city-level guides, see our Phoenix solar and Tucson solar pages.
| City | System size | Annual production | Est. system cost | Simple payback |
|---|---|---|---|---|
| Phoenix | 7 kW | 12,286 kWh per year | $17,150 | about 10.1 years |
| Tucson | 7 kW | 12,529 kWh per year | $17,150 | about 9.9 years |
| Mesa | 7 kW | 12,201 kWh per year | $17,150 | about 10.2 years |
| Scottsdale | 7 kW | 12,217 kWh per year | $17,150 | about 10.2 years |
| Chandler | 7 kW | 12,253 kWh per year | $17,150 | about 10.1 years |
Production is a modeled NREL PVWatts v8 run per city ZIP; cost and payback are MySolarFY estimates that hold today’s rate flat and ignore financing. A written quote for your roof beats any table.
Utility rate and net metering comparison
Arizona ended traditional net metering, so APS, SRP, and TEP now pay for the solar you export at an export rate well below full retail, and that rate steps down each year for new customers. Your utility sets the delivery rate and administers this export credit, which is what you earn for the power your roof sends back to the grid. For the full breakdown of how each utility pays, see our Arizona net billing guide and the general mechanics in how net metering credits your solar exports.
| Utility | Residential rate | Net metering treatment |
|---|---|---|
| Arizona Public Service (APS) | about 15 to 16 cents per kWh all-in | No traditional net metering; net billing pays exports at a Resource Comparison Proxy rate near 6.9 cents per kWh, locked 10 years and stepping down up to 10% each year for new solar |
| Salt River Project (SRP) | demand-based residential solar plans; roughly 14 to 15 cents per kWh energy | No net metering; export credits near 3.5 cents per kWh on export-based plans, and most solar plans carry a demand charge set by your peak hour |
| Tucson Electric Power (TEP) | about 14 to 15 cents per kWh all-in | No net metering; net billing pays exports at a Resource Comparison Proxy rate near 5.1 cents per kWh after the ACC-approved 10 percent cut effective October 1, 2025, locked 10 years for new solar |
Net metering rules are set by state law and the utility commission, not the installer. Confirm your utility’s current tariff before you size a system.
Arizona solar incentive stack (2026)
Arizona’s biggest state incentive is the 25% Residential Solar Energy Tax Credit, capped at $1,000, and it is still active in 2026, on top of sales tax and property tax exemptions plus utility export credits. State programs, net metering, and any rebates make up the Arizona incentive stack. These go to the system owner, so on a lease or PPA the company that owns the panels keeps the incentive while the bill credit follows your account. For a deeper walkthrough, see our Arizona solar incentives guide.
Arizona Residential Solar Energy Tax Credit
25% of the system cost, capped at $1,000, claimed on your Arizona state income tax return, with any unused amount carried forward up to five years (active) (Arizona Department of Revenue / AZ Governor’s Office of Resiliency, as of August 2026)
Solar Energy Devices Sales Tax Exemption
Qualifying solar energy devices are exempt from Arizona state transaction privilege (sales) tax (active) (Arizona Department of Revenue, as of August 2026)
Energy Equipment Property Tax Exemption
A residential solar system adds no assessed value for property tax purposes, so your property taxes do not rise from installing it (active) (Arizona Department of Revenue / A.R.S. 42-11054, as of August 2026)
Net billing export credits (APS, SRP, TEP)
Utilities buy your exported power at an export rate, not full retail; the rate is locked when you interconnect and steps down annually for new customers, so earlier interconnection locks a higher rate (active) (Arizona Corporation Commission, as of August 2026)
The federal homeowner credit has ended, but Arizona’s programs have not. The 30% federal Residential Clean Energy Credit (Section 25D) ended December 31, 2025, so an Arizona homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS Residential Clean Energy Credit, as of 2026). State net metering and the incentives listed above were not affected by that change. For the full timeline, see what the federal solar tax credit change means and our state solar incentives overview.
Methodology and sources
- Electricity rate: the latest EIA Form residential retail price for Arizona (EIA retail sales, as of May 2026).
- Production: modeled with NREL PVWatts v8 for a 7 kW south-facing array at the city ZIP (NREL PVWatts v8 documentation, as of August 2026).
- Installed capacity ranking: Arizona’s national rank for cumulative installed solar capacity (SEIA Arizona, as of August 2026).
- Cost and payback: MySolarFY estimates built from installed cost per watt (informed by the DataForSEO cost SERP for Arizona) and the EIA rate, holding today’s rate flat and ignoring financing.
- Incentives and net metering: the Arizona Corporation Commission and the DSIRE incentive database (DSIRE, as of August 2026).
- Assumptions: a 7 kW system, standard losses, and a south-facing array. Your roof, usage, and financing change the result, so treat these as planning figures, not a quote.
Citing this data
Citing this data?
Cite as: “MySolarFY, Arizona Solar Data & Statistics 2026, accessed August 22, 2026.” Data compiled by MySolarFY from EIA (residential electricity rate), NREL PVWatts v8 (modeled production), SEIA (installed capacity), DSIRE and the Arizona Corporation Commission (incentives and net metering), and DataForSEO (cost SERP). Figures are dated in each table above.
Journalists and researchers may quote these statistics with attribution to MySolarFY and a link to https://mysolarfy.com/arizona-solar-data-statistics-2026/.
See what solar programs are available in your Arizona ZIP code
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How to choose a solar installer in Arizona
The best way to pick an Arizona installer is to screen every company against objective criteria rather than chasing a “best installer” list: NABCEP certification, a valid state license, a written workmanship and equipment warranty, real experience with your utility’s interconnection, and a transparent quote that uses today’s incentive values. For a checklist, see the right questions to ask a solar installer. MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation.
Frequently asked questions
What is the average solar cost in Arizona in 2026? A typical residential system in Arizona runs about $2.20 to $2.90 per watt installed before any incentives (MySolarFY cost range, as of August 2026). A 7 kW system is a common size for a single-family home. Cost varies with roof, equipment, and installer, so use a written quote for your own numbers.
How much electricity does a solar system produce in Arizona? A modeled 7 kW array produces about 12,286 kWh a year in Arizona (NREL PVWatts v8, as of August 2026). Production drives both your export credits and your payback, so estimate your specific roof rather than a generic number.
Does Arizona still have net metering? No. Arizona replaced traditional net metering with net billing, so APS, SRP, and TEP pay for exported solar at an export rate below retail (near 6.9 cents per kWh at APS, as of August 2026) that is locked when you interconnect and steps down each year for new customers.
Did the federal solar tax credit end? Yes for homeowners. The 30% federal Residential Clean Energy Credit (Section 25D) ended December 31, 2025, so an Arizona homeowner who buys solar in 2026 cannot claim it (IRS, as of 2026). Arizona’s 25% state credit up to $1,000, its tax exemptions, and utility net billing were not affected by that change.
Reviewed by the MySolarFY team. Figures were verified against the linked EIA, NREL, SEIA, DSIRE, and Arizona Corporation Commission sources as of August 2026; rates, incentive values, and net-metering terms can change, so confirm current terms before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. Solar panels are not free and any monthly payments apply. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation; lease and PPA terms may include an annual escalator and total payments may exceed a cash purchase, and on a lease or PPA the incentives go to the company that owns the system. Homeowners do not get the federal residential credit that ended after December 31, 2025. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
