What the tax credits really do for an Arizona solar bill
Incentives are the part of solar that gets the most hype and the least straight talk. Here is the honest version for 2026: the Arizona state credit is still here, the federal residential credit is not, and the bigger win is simply buying less power at a rate that keeps climbing.
Reviewed May 2026 · Sources cited throughout.
Short answer: Arizona's solar tax credit is worth up to $1,000 and is still active in 2026. The federal 30% residential credit expired December 31, 2025, and no longer applies to systems you buy and own. The larger, durable saving is avoiding rising APS and SRP rates over time.
The two credits, explained
Pick the credit you want the real numbers on. We keep both pages current and sourced, not aspirational.
Arizona state solar tax credit
Arizona gives you a $1,000 credit on your state return (technically 25% of your system cost, capped at $1,000). Here is who qualifies and how to claim it on Form 310.
Read the guideFederal solar tax credit
The 30% federal residential credit closed at the end of 2025. Here is exactly what that means for a system you buy in 2026, and the third-party path that is still open.
Read the guideArizona solar incentives: the bottom line
- The Arizona state credit is still active: a flat $1,000 (technically 25% of your solar device cost, capped at $1,000 lifetime), claimed on Arizona Form 310. You must own the system.
- The federal residential credit is closed. The 30% Section 25D credit expired December 31, 2025, so a system you buy in 2026 does not earn it.
- The real savings is your bill. The largest, most durable saving is not a credit at all. It is no longer renting power from APS or SRP at a rate that goes up almost every year. Run your own numbers in the savings calculator, and see what a full solar panel installation involves.
If you want to understand the trajectory you are getting off of, start with the Arizona electric rate increases and how residential solar fixes most of your cost up front.
Arizona solar incentives: common questions
What solar incentives can an Arizona homeowner still get in 2026?
The biggest one still standing is the Arizona state tax credit, worth a flat $1,000 (technically 25% of your solar device cost, capped at $1,000 lifetime), claimed on Arizona Form 310. The 30% federal residential credit (Section 25D) expired on December 31, 2025, so a system you buy and own in 2026 no longer earns it. Some utility programs and net-billing credits also affect your real return, which we cover during the free review.
Did the federal solar tax credit go away?
For homeowners who buy and own their system, yes. The One Big Beautiful Bill, signed July 4, 2025, ended the residential Section 25D credit on December 31, 2025, with no phase-down. There is no 30% credit for an owned residential system installed in 2026. A separate business credit (Section 48E) can still flow through some third-party lease and power-purchase arrangements through 2027, but that is the installer or financier claiming it, not you.
How much can incentives actually knock off my solar cost?
In 2026 the clearest, verifiable Arizona homeowner incentive is the state credit, worth up to $1,000. Beyond that, the real savings come from no longer buying as much power at a rising utility rate. The honest number for your home depends on your roof, your usage, and your utility, which is what the free savings review is for.
Do I have to own the system to get the tax credits?
For the Arizona state credit, yes, you must own the device. Leases and power-purchase agreements do not qualify you for the state credit because you do not own the equipment. We always walk through lease versus buy honestly, since owning is what puts the credit and the long-term savings in your name.
Get your honest number, credits and all.
Bring a recent APS or SRP bill. We will fold in the Arizona credit, the 2026 federal reality, and your real usage. No pressure, no hard sell.