With more sunny days than almost any other state, Arizona is primed for solar energy. In 2026, pairing Arizona's high irradiance with state tax credits and battery storage creates a powerful hedge against scorching summer utility rates.
Arizona Solar Incentives & APS/SRP Export Rates (2026)
Dr. Aris Thorne
NABCEP Certified Solar Consultant
📅 Updated: 2026-08-20
⏱️ 6 min read
✓ Fact-Checked
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Key Takeaways & Executive Summary
- $1,000 State Solar Tax Credit: Deduct 25% of your solar system cost up to $1,000 from your Arizona state income tax return.
- RCP Export Rates: APS and TEP credit solar exports at ~7.6¢/kWh locked for 10 years; SRP uses a dedicated solar customer generation plan.
- 100% Tax Exemptions: Solar equipment is exempt from Arizona state sales tax and adds 0% to your county property taxes.
- High Solar Irradiance: Over 300 sunny days per year deliver exceptional kilowatt-hour output per installed watt.
State Tax Credit
$1,000
Direct AZ Deduction
Sunny Days / Yr
300+
Top Solar Irradiance
Property Tax
100% Free
ARS 42-11054
Federal ITC
30%
Section 25D Credit
Frequently Asked Questions
Is solar battery storage necessary in Arizona?
Yes, especially for SRP customers or homeowners on extreme summer Time-of-Use plans, because storing cheap daytime power avoids paying 30¢+ on-peak air conditioning tariffs.