Solar Rebates in Phoenix, Arizona (2026)

Phoenix has the strongest solar resource in the United States (~6.5 kWh/m²/day insolation). Phoenix metro splits between APS (Arizona Public Service) and SRP (Salt River Project) territories — the choice has major rate-design implications. APS uses Resource Comparison Proxy (RCP) export rate (~$0.087/kWh, much below retail). SRP uses E-27 demand-charge tariff that penalizes solar without batteries. SRP also runs the most generous battery storage rebate in Arizona ($250/kWh up to $3,600). Phoenix homeowners typically pair solar with battery to capture full economic value. Combined federal 25D + Arizona state credit ($1,000 cap) + property tax exemption + sales tax exemption delivers 7–9 year paybacks.

Phoenix solar programs available

Federal 25D (30%)
Arizona Solar Tax Credit (25%, $1,000 cap)
AZ Property Tax Exemption
AZ Sales Tax Exemption
APS Solar Communities (income-qualified)
SRP Battery Storage Rebate ($250/kWh up to $3,600)
APS RCP / SRP E-27 (export tariff)

Full program details, dollar amounts, and stacking math: Arizona solar rebates.

Phoenix-specific FAQ

APS vs SRP — how do I know which? +

Check your utility bill. SRP territory: Phoenix, Scottsdale, Tempe, Mesa, parts of Chandler. APS territory: West Valley, parts of Chandler, Surprise, parts of Peoria, parts of north Phoenix.

Best for SRP solar? +

Battery storage essentially required. SRP's E-27 demand charge penalizes solar without battery. SRP battery rebate ($3,600) helps offset cost.

Solar Communities — APS-only? +

Yes. Income-qualified APS customers receive free leased rooftop solar (no upfront cost) under the Solar Communities program.

Phoenix permitting timeline? +

2–4 weeks typical. Phoenix and Maricopa County have streamlined solar permitting compared to coastal urban areas.

Federal pathway

The federal 25D 25D Credit (30% of cost, no cap) applies to Phoenix solar installations regardless of city or state. See the 25D guide for filing instructions and forms.