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Best Solar Companies in Arizona

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      To choose our top picks for solar energy companies, we compared several key features, including customer service, equipment quality, financing options, overall reputation and other factors. Out of our 6 top picks, 5 operate in Arizona.

      Our picks may be Authorized Partners who compensate us — this does not affect our recommendations or evaluations but may impact the order in which companies appear.

      Key insights

      • Arizona residents who install solar panels save an average of $23,891 over 25 years.
      • The federal solar investment tax credit is the most significant way to lower the cost of installing a solar energy system in Arizona.
      • Arizona has several sales tax, property tax and income tax incentives to help you reduce the cost of installing solar panels.
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      All information accurate as of time of publication.

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        Arizona solar energy buyers guide

        Arizona's climate makes it a great location for homeowners interested in going solar. The state averages seven to eight peak sunlight hours a day, which lets you maximize the amount of power produced by your solar energy system. Arizona residents with solar panels average a net savings of $23,891 over 25 years.

        How much does it cost to install solar panels in Arizona?

        It costs an average of $21,011 to install a solar energy system in Arizona after receiving the federal solar investment tax credit. The total price for your system will vary based on several factors, including how much power you need it to produce, whether you include optional equipment like batteries, the condition of your roof and what local incentives are available. The best solar energy companies perform a site consultation to give you an accurate estimate of your system’s cost.

        It’s possible to pay for a solar energy system upfront, but many people choose to finance their system through a solar loan. You can also lease your equipment or enter a power purchase agreement. These two options help reduce the amount you need to pay upfront, but you won’t be eligible for the federal solar investment tax credit because you won’t own your solar system.

        What solar incentives are available in Arizona?

        Using the federal solar investment tax credit is the best way to reduce the cost of installing solar panels in Arizona. The credit, which gives you a federal income tax credit that equals 30% of the total cost of your solar equipment and installation, is available for systems installed by the end of 2032. The credit will be reduced to 26% for systems installed in 2033 and 22% for systems installed in 2034 before expiring in 2035.

        Arizona also has multiple statewide and local solar incentives, including a state income tax credit for 25% of the cost of buying solar energy equipment. The credit caps at $1,000, however, and is nonrefundable. If your credit is more than your tax liability, it can be carried over for up to five years.

        You also receive a 100% sales tax exemption with no maximum limit when purchasing or installing solar energy or wind energy equipment. The credit applies to solar panels, solar water heaters, wind generators and similar devices.

        There’s also a property tax exemption for 100% of the value a solar energy system adds to your home.

        Net metering in Arizona

        Net metering is the process of sending excess energy your system produces back to the grid for compensation. While Arizona technically uses a net billing system, the two policies are very similar.

        The Arizona Corporation Commission approves compensation rates provided by the three largest utilities: Arizona Public Service, Tucson Electric Power and Salt River Project. The rates provide compensation for supplying your excess power to the grid, but you may make less than you would in other states.

        Participating in net metering is still beneficial for many Arizona residents, however, especially those who do not have a battery to store power for later use.


        Is going solar worth it in Arizona?

        We think it’s worth it to go solar in Arizona. Residents who purchase their system upfront save an estimated $23,891 over 25 years, while those who finance their systems save an estimated $18,000 over 25 years.

        The state receives seven to eight hours of peak hours a day, which is among the highest in the U.S. and increases the window at which your solar system works at peak performance. Arizona also has several state incentives that help you save money on your solar panels.

        Can I get free solar panels in Arizona?

        There are no programs that provide solar panels in Arizona, but you can lease or enter a power purchase agreement for a small or no upfront cost.

        How many solar panels do I need to power a house in Arizona?

        The number of solar panels you need to power your home varies depending on your energy needs, how much sunlight your house receives, how efficient your panels are and other factors. Your solar panel installer can help you determine how many panels you need for your energy needs.

        Solar batteries let you store the solar energy you produce to use when your system is not producing power. A solar battery helps you increase your energy independence and is essential if you want to go off-grid.

        Not sure how to choose?

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