Lower Summer Bills

Phoenix summers push past 115°F, and air conditioning drives everything. Solar directly offsets the power you’d otherwise buy during exactly those months — your system produces hardest when your AC is working hardest.

One thing most installers won’t mention: extreme heat reduces panel efficiency. Real output on a 118° roof runs below the datasheet rating. We account for that in sizing. An estimate that doesn’t will under-deliver.

Solar Incentives in Phoenix

The 30% federal residential tax credit (Section 25D) expired December 31, 2025. If you buy a system with cash or a loan in 2026, there’s no federal credit.

What Phoenix homeowners can still use:

• Arizona state tax credit — 25% of system cost, capped at $1,000, against your personal income tax
• Sales tax exemption — no state sales tax on solar equipment
• Property tax exemption — your assessment doesn’t rise from the value solar adds
• Net billing — credit for excess power you send to the grid (APS and SRP handle this very differently — see below)
• APS Virtual Power Plant — roughly $150–$500/year if you have a battery and you’re on APS
• Lease/PPA financing — the 30% credit still exists under Section 48E for third-party owned systems. The owner claims it and passes the value through as a lower payment. This is currently the only route to federal credit value on a residential system.

General information, not tax advice — confirm your situation with a tax professional.

Net Billing: APS and SRP Are Not the Same

This is the part that matters most in Phoenix, and almost nobody explains it.

When your panels produce more than you’re using, the excess goes to the grid and you earn a credit. But what that credit is worth depends entirely on your utility:

• APS credits exports at roughly 7.6–10¢/kWh through its Resource Comparison Proxy rate
• SRP credits at roughly 3¢/kWh — its avoided cost rate, essentially wholesale

On a typical 8 kW system, that’s a $30–50 difference every month.

SRP also bills demand charges based on your single highest hour of on-peak grid usage. That structure is why we recommend battery storage for nearly every SRP customer — shaving that one peak hour can justify the battery on its own.

Under both utilities, a kilowatt-hour you use directly from your panels is worth more than one you export. That’s why sizing and timing matter more here than in most markets.

The boundary between APS and SRP runs by neighborhood, not city line. Check your bill before you assume.

No Upfront Cost

We offer financing that requires no money down. You can install a rooftop system and start offsetting your bill from day one. Whether you’re a homeowner or a business owner, we’ll walk you through which structure — lease, loan, or purchase — actually costs less over time.

Property Value

Homes with owned solar systems generally sell for more than comparable homes without them. Arizona’s property tax exemption means that added value doesn’t raise your assessment. The effect depends on your market, system age, and whether the system is owned or leased — owned systems carry more value at resale.

Long-Term Savings

Solar panels require little maintenance and are built to last 25+ years. Every kilowatt-hour your system produces is one you don’t buy — and unlike a utility bill, that doesn’t go up every year.

Environmentally Friendly Energy

Solar production generates virtually no emissions. Arizona ranks among the country’s top solar-producing states, and going solar reduces your household’s fossil fuel dependence.