What Arizona solar incentives are still available in 2026? Fewer than many ads suggest. Arizona's state tax credit still pays 25% of the cost, up to $1,000. The 30% federal credit is gone for new home systems. And for most homeowners, the biggest factor is what your utility pays for the solar you send back to the grid.
This guide covers the tax credits and the current export rates for Arizona Public Service (APS) and Salt River Project (SRP). It won't tell you whether solar is right for your home. It will help you read a solar quote and spot numbers that don't belong in it.
Arizona Solar Incentives in 2026: The Short Version
- State tax credit: 25% of the cost, up to $1,000, with no end date
- Federal 30% credit: not available for systems placed in service after December 31, 2025
- APS export credit: 5.554¢ per kWh for systems connected from September 1, 2026, locked for 10 years
- SRP export credit: 3.45¢ per kWh on its export plans, or 1.87¢ on its Conserve and Manage Demand plans
Does Arizona Have a State Solar Tax Credit?
Yes. Arizona law (A.R.S. 43-1083) gives a state income tax credit to residents who install solar at their Arizona home. The credit is 25% of the system cost, up to $1,000. It has no end date, and you claim it on Arizona Form 310.
The credit is nonrefundable. That means it can lower the Arizona income tax you owe, but it can't create a refund beyond that. If you can't use it all in the first year, the unused part carries forward for up to five years.
Is the $1,000 an Instant Rebate?
No. It's a tax credit, not a discount on your installation invoice. You see the benefit when you file your state taxes.
Here's a hypothetical example. A homeowner buys an $18,000 system. Twenty-five percent would be $4,500, but the credit stops at $1,000. If they owe only $600 in Arizona income tax that year, they use $600 now. The other $400 carries forward to later years. Check your own tax situation with a tax professional.
What Happened to the Federal 30% Solar Credit?
This is the big change for 2026. The federal Residential Clean Energy Credit (Section 25D) was worth 30% of the cost of a home solar system in recent years. It is not available for property placed in service after December 31, 2025.
Some ads and old articles still show the 30% credit. If a new 2026 quote for your home includes it, ask the provider to explain why. It shouldn't be there by default.
Quick check
If a 2026 solar quote for your home subtracts a 30% federal credit, ask why before you sign.
Why Your Utility Matters as Much as the Tax Credit
Arizona has no single net metering rule for the whole state. Each utility sets its own terms for home solar. So your utility can shape your solar savings as much as the sunshine does.
The key number is the export credit (what the utility pays for extra solar you send to the grid). When it's much lower than the price you pay for power, solar you use at home is worth more than solar you export. APS and SRP handle this very differently.
How APS Pays for Exported Solar
New APS solar customers are on the Resource Comparison Proxy (RCP). It's a net-billing rider, meaning exports earn a set credit instead of offsetting power at the full retail price. Each month, the power you export earns a dollar credit on your bill.
Credits roll over from month to month. After the December bill, if your leftover credit is more than $25, APS sends you a check.
The 2026 APS Export Rate: 5.554¢
For customers connecting solar from September 1, 2026, the RCP rate is 5.554¢ per kWh. The 2025 rate was 6.171¢. A new rate is set every September 1, and it can't drop more than 10% in a year.
The good news is that your rate is locked for 10 years from when your system connects. A system connected this fall keeps 5.554¢ for a decade, even if later rates fall. Timing your connection can matter, so ask your provider when they expect the system to be connected.
APS Legacy Net Metering Is Closed
Older APS solar customers may be on legacy net metering (EPR-6). That plan is closed to new customers. It lasts up to 20 years from each system's connection date. So a neighbor's older system may earn credits you can't get today. Don't use their bills to judge your own quote.
Other APS Charges Solar Customers Still Pay
Solar doesn't erase every line on your APS bill. Rooftop solar customers on current plans pay a Grid Access Charge. All customers also pay adjustors, which are small per-kWh charges that are updated regularly. They cover costs like fuel and transmission. Treat any claim that “your bill will disappear” with care.
In its pending rate case, APS has also proposed a higher Grid Access Charge for solar customers. That's only a proposal. The Arizona Corporation Commission (ACC) hasn't approved it, and APS expects a decision later in 2026.
How SRP Is Different
SRP is a not-for-profit public power utility with an elected board. The ACC doesn't set its prices. SRP offers several price plans for homes with solar, and each one treats exports differently. Knowing your plan is the first step.
SRP Export Plans: 3.45¢ per kWh
SRP's Time-of-Use Export (E-13) and EV Export (E-14) plans have no demand charge. Extra solar is measured the instant it leaves your home and credited at a flat 3.45¢ per kWh. EV Export also has its cheapest prices from 11 p.m. to 5 a.m. every day, which suits overnight car charging.
SRP Demand Plans: Monthly Netting
SRP's Customer Generation (E-27) and Average Demand (E-15) plans work differently. They include a demand charge, a fee based on your highest 30-minute use. In return, exports are netted against your use each month. Any leftover excess is credited at the plan's retail price. E-27 also has SRP's lowest residential energy prices.
E-13, E-14, E-15 and E-27 stay open until they close with the November 2029 billing cycle. At that point, customers move to the Conserve or Manage Demand plans.
Conserve and Manage Demand: 1.87¢ for Exports
Solar customers can also choose SRP's Conserve 6–9 p.m. and Save (E-28) or Manage Demand 5–10 p.m. and Save (E-16) plans. Starting with the May 2026 billing cycle, exports on these plans earn 1.87¢ per kWh. SRP recalculates that rate every May. At that price, almost all the value of solar comes from using it at home.
SRP's Renewable Export Program
Customers on an SRP solar export plan with systems up to 100 kW AC can join the Renewable Export Program. It pays an hourly market-based price for exports instead of a flat rate.
There's also an optional Renewable Capacity Credit. For 2026 enrollments, it pays $6.30 per kW per month for each two-hour block you commit. You must deliver at least one two-hour block daily between 5 and 10 p.m., under a five-year contract. Since solar fades by then, this usually means pairing solar with a battery.
SRP's Temporary 0.38¢ Price Cut
For the May through October 2026 billing cycles, SRP cut all energy prices by 0.38¢ per kWh. The cut reflected lower gas and market power costs. SRP's standard prices return with November 2026 bills.
SRP prices move the other way, too. Its last price change, with November 2025 bills, raised solar customers' prices by an average of 5.5%. So don't build 20 years of savings on one summer bill.
What Export Rates Mean in Dollars
Here's a hypothetical example. Say a system sends 4,000 kWh a year to the grid. At APS's 5.554¢ rate, that earns about $222. At SRP's 3.45¢, about $138. At 1.87¢, about $75.
Now say an APS customer on the time-of-use plan uses those same 4,000 kWh at home during off-peak hours. That avoids buying power at about 12.3¢ per kWh, worth about $490 in energy charges. Same panels, same sunshine, very different value.
Why Bigger Isn't Automatically Better
Some quotes are built to make as much power as possible. But when exports earn a low rate, the extra panels that mainly feed the grid are the weakest part of the system. Ask how much of the system's output you're expected to use at home and how much will be exported.
A battery can store extra solar for later instead of exporting it. But a battery has its own cost. A fair analysis compares the export credit you'd give up against the battery's cost and the value of the stored power.
Eight Questions to Ask About Any Arizona Solar Quote
- Which utility serves my home? Everything starts there.
- Which solar rate plan does the quote assume? Don't settle for “you'll get credits.”
- What export rate is used? Get the actual number.
- How much of the solar will I use directly? Self-use drives the value.
- Is the Arizona credit shown correctly? It's 25%, capped at $1,000.
- Does the quote assume a 30% federal credit? A new 2026 home system shouldn't.
- Would HVAC or insulation upgrades shrink the system I need? In Arizona, they often can.
- What is the total project cost? Not just the monthly payment.
The Ashborn Approach
Incentives improve a good system, but they can't fix a bad one. Before recommending anything, Ashborn Partners looks at your utility, rate plan, export rate and usage. We also review your roof, shading, AC efficiency and the full project cost. Then we help you compare solar, battery and HVAC options from participating providers serving your area.
The project should make sense before the incentives are added, not because of them.
Arizona’s residential solar tax credit is 25% of system cost up to $1,000. The federal residential clean energy credit is not available for property placed in service after December 31, 2025. APS and SRP export rates and solar plans can change. This is general information, not tax advice.