Arizona Solar Incentives & Utility Programs

Federal Incentives
- 30% Federal Residential ITC through 2032 for solar, batteries, installation, permitting duke-energy.com+3northcarolina.statesolar.org+3california.statesolar.org+3energysage.com+2energysage.com+2southern-energy.com+2.
State Tax Credits / Rebates
- 25% Arizona Tax Credit, up to $1,000; nonrefundable, can roll over up to 5 years solarunitedneighbors.org+1ecogenamerica.com+1.
- Sales & Property Tax Exemption on solar equipment.
Net Metering / Net Billing
- Net metering phased out for new residential installs; replaced by utility-specific net billing at an export rate 30‑70% below retail (wholesale-avoided cost) duke-energy.com+15solarunitedneighbors.org+15energysage.com+15sunvalleysolar.com.
- APS, SRP, TEP offer net billing: e.g. APS since 2017; APS & SRP export credits significantly lower than retail .
- Some systems grandfathered under older net-metering — check with your installer for eligibility transfers nj.pseg.com+15sunvalleysolar.com+15rockymountainpower.net+15.
Utility & Local Programs
- SRP Solar Choice™: subscribe to utility-owned solar without installing panels rockymountainpower.net+9srpnet.com+9nj.pseg.com+9.
- City-level programs: Mesa allows net metering under municipal utility program, subject to system size limits energysage.com+2mesaaz.gov+2energysage.com+2.
- RPS targets: Utilities mandated to integrate distributed solar to meet renewable portfolio goals.
Time-Sensitive Promotions
- Lock in the 25% state credit before rollover opportunities diminish.
- Pairing with battery storage is increasingly crucial as export rates fall — many installers offer bundled packages.
- If grandfathering under net metering, act before system sale or utility policy changes break eligibility.