SolarPanels.ReportSolar offers, rules and payback, state by state

Solar by state

Solar in Arizona: is it worth it in 2026?

Arizona is a slow-payback state: solar works, but it takes well over a decade to earn back what you paid. Three things decide that: electricity prices rank 28th of 51, it gets more sun than most states (2nd), and exported power earns much less than the retail rate. Of the 51 states and DC, Arizona has the 34th-fastest payback for a typical home.

The average home here pays about $157 a month for 1,030 kWh. A 6.5 kW system sized for that home would knock about $1,114 off the first year's bills, 59% of the total.

Checked November 12, 2026

15.3¢Average electricity price per kWh (2025), 28th highest
1,030 kWhAverage home's use per month
1,755 kWhMade a year by each kW of panels (6.5 peak sun hours a day)
6.5 kWSystem for an average home, about $16,705 at the 2026 median price
16 yearsPayback for that system, paid in cash, no federal credit
$16,299Savings after 25 years, minus what you paid ($7,539 in today's dollars)
Check a quote for ArizonaRun your own payback

What makes solar pay off in Arizona

Payback by system size

An average Arizona home uses about 12,360 kWh a year. Here's how systems sized to cover part or all of that work out, bought with cash at $2.57 per watt:

CoversSizePriceMakes a yearPayback25-year savings
50%3.5 kW$8,9956,143 kWh17 years$7,565
78%5.5 kW$14,1359,653 kWh16 years$13,388
99%7 kW$17,99012,285 kWh15 years$17,755
128%9 kW$23,13015,795 kWh17 years$18,642

The 7 kW system pays back fastest, but the 9 kW system saves the most over 25 years, though only if the extra power is used at home. Assumes exported power earns about 40% of the retail rate, prices rise 2.5% a year and one inverter replacement.

How Arizona credits power you send to the grid

Reduced credit (net billing)

APS pays 6.17 cents per kWh for exported power on applications from September 1, 2025 through August 31, 2026, locked for 10 years; TEP pays 5.1 cents. SRP ended net metering in November 2025.

By utility

Before you sign in Arizona

Check the license. Look the company up with the Arizona Registrar of Contractors, by its legal name or license number, and ask for the electrician's license number too.

SB 1419 (2026):

In every state, the FTC Cooling-Off Rule lets you cancel a contract signed at your home until midnight of the third business day.

How to choose a solar company · Contract checklist · Before you sign

Arizona compared with its neighbors

StateElectricitykWh per kWTypical paybackExported power
Arizona15.3¢1,75516 yearsReduced credit (net billing)
California31.4¢1,67710 yearsReduced credit (net billing)
Nevada13.3¢1,75314 yearsReduced credit (net billing)
Utah13.0¢1,48422 yearsReduced credit (net billing)
New Mexico14.8¢1,77910 yearsMonthly netting

Questions about solar in Arizona

How long does solar take to pay for itself in Arizona?

About 16 years for a typical 6.5 kW system bought with cash at the 2026 median price of $2.57 per watt, with no federal tax credit and one inverter replacement. A bigger or smaller system, a different price, or your own usage will change that; the table above shows other sizes.

Does Arizona have net metering?

Not full net metering. APS pays 6.17 cents per kWh for exported power on applications from September 1, 2025 through August 31, 2026, locked for 10 years; TEP pays 5.1 cents. SRP ended net metering in November 2025.

Is there a solar tax credit in Arizona in 2026?

Not from the federal government for buyers: the 30% homeowner credit ended for systems installed after December 31, 2025. For a typical 6.5 kW system in Arizona, that credit was worth about $5,012 and brought payback down to 10 years, instead of 16 years now. Leasing companies can still claim a business credit, so ask for a lease or PPA price too. Your state energy office lists any state rebates.

Is a solar battery worth it in Arizona?

On bill savings alone, not quite: a 13.5 kWh battery at about $15,650 would move about 3,548 kWh of solar power a year from the grid to your evenings in a typical Arizona home, adding about $4,657 of savings over 15 years. That doesn't cover its price, so the system's payback goes from 16 years to 22 years; the rest is paying for backup during outages. Time-of-use rates, battery rebates and utility payments for sharing your battery can tip it; try your numbers in the payback calculator.

Is plug-in solar legal in Arizona?

There's no plug-in solar law yet in Arizona, so your utility may treat a kit like any rooftop system.

How do I check a solar company's license in Arizona?

Look the company up with the Arizona Registrar of Contractors (roc.az.gov) by its legal name or license number, and ask for the electrician's license too.

More guides: What changed for solar in 2026 · Lease or buy? · Plug-in solar · Is my solar system working?

Sources: U.S. Energy Information Administration (EIA), final 2025 data: Annual State Historical Spreadsheets (Form EIA-861, released October 7, 2026) and Electric Power Annual (October 21, 2026); NREL PVWatts (National Solar Radiation Database), statewide averages; Palmetto: Arizona utility guide; SRP: solar price plans and FAQ; SRP: E-13 price plan, 2025 rate book; Aurora Solar: consumer protection developments; EnergySage: median quoted price, first half of 2026.