When Is the Best Time to Go Solar in Arizona?
Arizona is one of the sunniest states in the country, which makes it a prime location for residential solar. But timing your solar installation can make a real difference in how much you save — both upfront and over the lifetime of your system. Here's what Arizona homeowners should know before signing on the dotted line.
Why Arizona Is One of the Best States for Solar
Arizona averages more than 300 sunny days per year. Cities like Phoenix, Tucson, and Scottsdale consistently rank among the top solar markets in the U.S. The combination of high electricity rates from utilities like APS (Arizona Public Service) and SRP, along with abundant sunshine, means solar panels generate strong returns here.
Simply put: if you're going to go solar anywhere, Arizona is a great place to do it.
The Federal Solar Tax Credit: A Time-Sensitive Incentive
The single biggest financial driver for going solar is the federal Investment Tax Credit (ITC). As of 2025, the ITC allows homeowners to deduct 30% of the total cost of a solar installation from their federal income taxes. This credit is available through 2032 under the Inflation Reduction Act, after which it is scheduled to step down.
To claim the full 30% credit, your system must be installed and operational within the same tax year. That means if you want the credit for this year's tax return, your installation needs to be completed before December 31. Planning ahead is essential — installations can take several weeks from contract signing to final inspection.
Important: Tax credits work best when you have a significant tax liability. Talk to a tax professional about how the ITC applies to your specific situation.
Arizona State Incentives to Know
Arizona also offers its own incentives that make solar even more attractive:
- Arizona Residential Solar Tax Credit: Homeowners may claim a state tax credit of 25% of the cost of a solar system, up to a maximum of $1,000. This is a credit — not a deduction — against your Arizona state income tax.
- Sales Tax Exemption: Solar equipment in Arizona is exempt from state sales tax (TPT), which can save several hundred dollars depending on system size.
- Property Tax Exemption: The added value a solar system brings to your home is exempt from Arizona property taxes. Your home's assessed value won't rise due to the solar installation.
These state incentives are currently in effect but could change with future legislation. Always confirm current rules with a licensed solar contractor or tax advisor.
Best Season to Install Solar in Arizona
From a purely practical standpoint, fall and winter (October through February) are often the best times to schedule a residential solar installation in Arizona. Here's why:
- Installer availability: Summer is peak season. Demand surges as homeowners get hit with sky-high cooling bills. Scheduling in the off-season often means shorter wait times and sometimes more competitive pricing.
- Cooler working conditions: Crews can work faster and safer when it's not 110°F on your roof.
- Start earning credits sooner: A system installed in the fall or winter is producing power — and banking net metering credits — before the big summer electricity bills arrive in June.
That said, if you install in summer, you'll still benefit. A solar system typically pays for itself over years, not months, so a few weeks' difference in timing matters less than simply getting started.
Net Metering in Arizona: What You Need to Know
Net metering allows you to send excess solar energy back to the grid and receive bill credits in return. Arizona utilities do offer billing arrangements for excess generation, but the rules have changed significantly in recent years.
- APS and SRP both have export compensation programs, but the rates paid for excess energy sent to the grid are lower than retail electricity rates.
- The specific rates and plans vary by utility and are updated periodically.
Because these rates affect your payback period, it's important to get a current quote and review your utility's specific net metering or export tariff before committing to a system size. A reputable local installer can run these numbers for you.
How to Choose the Right Solar Installer in Arizona
Not all installers are created equal. When evaluating solar companies in Arizona, look for:
- Arizona Registrar of Contractors (ROC) license — required for solar installations in AZ
- NABCEP certification (North American Board of Certified Energy Practitioners)
- Multiple verified customer reviews
- Clear, itemized quotes with no hidden fees
- Transparent warranties on panels, inverters, and workmanship
Get at least two or three quotes before deciding. Pricing and system designs can vary significantly between companies. Connect with pre-screened solar pros through our intake tool to save time comparing options.
Frequently Asked Questions
How long does a solar installation take in Arizona?
From signing a contract to final utility approval (permission to operate), the typical timeline is 4 to 12 weeks. This includes permitting, equipment procurement, installation, inspections, and utility interconnection. Plan accordingly if you're trying to claim a tax credit by year-end.
Does Arizona have any solar rebates from utilities?
Rebate programs from APS and SRP have come and gone over the years. As of 2025, large direct rebate programs are largely unavailable, but both utilities have various rate plans and export compensation structures. Check directly with your utility or ask your installer for the latest programs available to you.
Is solar worth it in Arizona even with changing net metering rules?
For most Arizona homeowners, the answer is still yes — particularly if you have high electricity bills and plan to stay in your home long-term. The combination of federal and state tax credits, the sales tax exemption, and Arizona's exceptional sun hours typically produces strong long-term savings even with reduced export rates. Every household's situation is different, so run the numbers with a qualified installer.
What size solar system do I need for an Arizona home?
System size depends on your monthly electricity consumption, roof size, shading, and utility rate structure. The average Arizona home uses significantly more electricity than the national average due to air conditioning. A licensed solar contractor will perform an energy audit and design a system sized to your actual usage.
Will going solar affect my home's resale value in Arizona?
Studies generally show that homes with owned solar systems sell faster and at higher prices than comparable non-solar homes. Because Arizona exempts solar-added value from property taxes, you get the resale benefit without a higher tax bill.
Ready to find out if your Arizona home is a good fit for solar? Talk to our 24/7 AI to see if you have a strong case — free, no obligation. → Start free intake