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.
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 25% of your system cost back, up to a $1,000 lifetime cap, on your state return. 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 guideThe 2026 picture, in three honest lines
- The Arizona state credit is still active: 25% of your solar device cost, up to a $1,000 lifetime cap, 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.
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.
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.