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Arizona Solar Rebates and Incentives – Updated!

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Arizona solar rebates and incentives have been updated on the Arizona solar power information page here. I have to say, the state, the legislators, and utilities have come a long, long, way since our last review of the page. They’ve come a long way with rich incentives and a new net metering policy which requires most utilities to pay you for the extra solar juice your panels produce. Read the full Arizona page here, but here’s the bottom line: For an average 5kW system in the greater Phoenix area, this is what you get for solar rebates and incentives:

  • Cost Before Incentives: $35,000 (5000watts x $7/watt) (Don’t panic!)
  • State Rebate: Subtract $15,000 ($3/watt x 5000 watts)
  • 30% Federal Tax Credit: Subtract $6,000 (calculated after State rebate)
  • Arizona State Tax Credit: Subtract $1,000
  • Years to Payback: 10 years (Using Net Metering and “Time of Use” TOU rate (Schedule ET-1) That means you get about 80% of your electric costs free after 10 years. Not bad.

Estimated NET Cost: $13,000

Oh, yeah. This helps too:

  • Greenhouse Gas (CO2) Saved: 9618lbs/year, or similar to not driving 11,500 miles a year.
  • New Monthly Electric Bill with Solar (First Year): What used to be a $100 average bill without solar is now about $15/month average.

Read the full Arizona report here, or go right to our handy dandy find a local installer page and get your own free, customized quote for you sun drenched soon to be solar home.

Last modified: December 28, 2018

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jerry johnson

Whats even better. In Oregon if you produce over 500 kwh of electricity they have to purchase it from the homeowner for 65 cents a kwh or if in Eastern Oregon they have to pay 55 cents per kwh.


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