Arizona solar calculator
Size a Arizona home solar system from your electric bill — kW, panel count, roof area, true cost with no federal credit for 2026 installs, and payback.
Quick answer: At $0.154/kWh and 6.4 peak sun hours, a $200/month bill needs about 9.02 kW — 22 × 410 W panels covering ~44 m². Gross cost is ~$20,385 with no federal credit for systems installed after 2025, offsetting $2,400 a year for a ~8.5 year payback.
Your details
Ballpark, not gospel. Ballpark, not gospel. Sized at 78% real-world output with the Arizona sun-hour average — confirm shading, roof angle and your utility's export plan with a local installer before buying. The savings math values all generation at your retail rate. Arizona's utilities pay only ~1.9–5.6¢/kWh for exports — roughly one-third of the retail rate — so real savings track how much you self-consume or store in a battery.
The 30% credit ended — what changed
The residential clean energy credit (26 U.S.C. § 25D) gave homeowners a 30% credit on solar installed from 2022 through 2025. The July 2025 tax law ended it: no credit is available for property placed in service after December 31, 2025. That is why every figure on this page is ~30% higher than pre-2026 guides show. If your system went live by the end of 2025, tick the box above to see the credit applied; leased systems may still benefit because the leasing company claims the commercial credit. Source: IRS — Residential Clean Energy Credit.
Typical Arizona system sizes by monthly bill
| Monthly bill | System size | Panels (410 W) | Net cost (no 2026 federal credit) | Payback |
|---|---|---|---|---|
| $100 | 4.51 kW | 11 | $10,193 | 8.5 years |
| $200 | 9.02 kW | 22 | $20,385 | 8.5 years |
| $300 | 13.12 kW | 32 | $29,651 | 8.2 years |
Computed at $0.154/kWh, 6.4 peak sun hours and $2.26/W installed, with no federal credit for 2026 installs. Export savings assume self-consumption at the retail rate — Arizona's net-billing export rates are far lower (see below).
Solar in Arizona: the details
Solar cost in Arizona
Arizona is one of the cheapest states to go solar. The EnergySage marketplace averaged about $2.26 per watt installed in 2026, with market quotes typically $2.13–$2.77/W — below the $2.50–$3.50/W national band. A $200/month bill needs ~9 kW, grossing around $20,400, with no federal credit for 2026 homeowner installs.
The country's best sun (~6.5 peak sun hours, tied for highest of any state) does the heavy lifting: you need fewer watts per dollar of bill than almost anywhere else.
Export rules: getting paid for surplus power
Arizona ended 1:1 net metering in 2016. New customers get net billing at a utility-set export rate, locked for 10 years from interconnection. Current rates for new systems are far below the ~15.4¢/kWh retail rate:
APS: ~5.55¢/kWh (applications Sept 2026–Aug 2027). TEP: ~4.62¢/kWh (applications from Oct 2026). SRP: ~1.87¢/kWh — SRP isn't regulated by the Corporation Commission and sets its own terms, including demand-based plans that make a single hot-evening demand spike expensive. Every self-consumed kWh is worth roughly 2–7× an exported one.
This is a self-consumption state: the highest-value lever is a battery that shifts midday solar into the afternoon/evening peak, especially where demand charges apply.
Arizona solar incentives
Arizona's incentives are tax-based and steady:
State income tax credit — 25% of system cost, capped at $1,000 per home (Form 310; unused credit carries forward 5 years; purchased systems only). Sales tax exemption on solar equipment and property tax exemption — solar adds $0 to your assessed value. There is no statewide rebate program.
Is solar worth it in Arizona?
Verdict: yes — design for self-consumption. The calculator puts a $200/month bill at a ~8.5-year payback with no federal credit, on the country's best sun. But with exports earning ~2–6¢/kWh, oversizing for export is pointless — size for your daytime load plus a battery for the evening peak, and the math beats most states.
Questions people actually ask
Straight answers, no fluff. Then run your own numbers above.
How many solar panels do I need in Arizona?
It follows your bill. At the Arizona average of $0.154/kWh and 6.4 peak sun hours — the sunniest of any US state — a $200/month bill needs about a 9.02 kW system, roughly 22 × 410 W panels covering ~44 m² of roof.
What is the average cost of solar panels in Arizona in 2026?
The EnergySage marketplace averaged about $2.26 per watt installed in 2026, with market quotes typically $2.13–$2.77/W — below the national band. A $200/month bill needs ~9 kW, grossing around $20,400, with no federal credit for 2026 homeowner installs.
Does Arizona have net metering?
Not anymore — 1:1 net metering ended in 2016. Utilities pay net-billing export rates locked for 10 years: roughly 5.55¢/kWh (APS), 4.62¢/kWh (TEP) and ~1.87¢/kWh (SRP), all far below the ~15.4¢/kWh retail rate. Self-consumed solar is worth 2–7× more than exported solar.
What solar incentives does Arizona offer?
A 25% state income tax credit capped at $1,000 per home, plus sales tax and property tax exemptions for solar equipment. There is no statewide rebate. SRP customers face demand-based plans — check SRP's current export options at srpnet.com.
Is the 30% federal solar tax credit still available?
Not for homeowner purchases anymore. The residential clean energy credit (26 U.S.C. § 25D) is not available for property placed in service after December 31, 2025, under the July 2025 tax law (Public Law 119-21). Systems installed by the end of 2025 can still claim 30%, and leased systems may still benefit because the leasing company claims the commercial credit instead. (Source: IRS — Residential Clean Energy Credit.)
Is solar worth it in Arizona?
The calculator puts a $200/month bill at a ~8.5-year payback with no federal credit, on the country's best sun. With exports earning only ~2–6¢/kWh, size for self-consumption and add a battery for the evening peak rather than oversizing for export.
Figures last checked October 2026. Sources: EIA Electric Power Monthly (July 2026: 15.38¢/kWh), NREL PVWatts/NSRDB (~6.5 peak sun hours, highest of any state), DSIRE, Arizona Corporation Commission; IRS — Residential Clean Energy Credit.
More US solar calculators
Compare other states: Texas, Florida, California, North Carolina. And the national US solar calculator for country averages.
Comparing quotes? The solar cost calculator breaks down cost per watt and the solar ROI calculator maps your payback year by year. Going deeper: installation cost guide, how net metering works, how much you can save with solar and the solar batteries guide.