Solar incentives and tax credits available in Surprise, AZ

Solar Incentives in Surprise, AZ

Complete guide to solar tax credits, rebates, and incentive programs available to Surprise homeowners in 2026.

%

Federal Solar Investment Tax Credit (ITC)

30% of total system cost

Surprise homeowners can deduct 30% of the cost of installing a solar energy system from their federal taxes. This applies to all qualified solar installations in Surprise, AZ.

Arizona State Solar Incentives for Surprise Homeowners

Arizona Residential Solar Tax Credit

Tax Credit

Arizona offers a state income tax credit for solar energy devices installed on residential property.

25% of system cost, up to $1,000

Solar Equipment Sales Tax Exemption

Sales Tax

Solar energy equipment is exempt from state sales tax in Arizona, reducing the overall installation cost.

100% sales tax exemption on solar equipment

Property Tax Exemption for Solar

Property Tax

The added value of a solar installation is exempt from property tax assessment in Arizona.

100% property tax exemption on added solar value

APS Solar Communities Program

Rebate

Arizona Public Service offers programs for residential solar customers including incentives for battery storage.

Varies by program and system size

Net Metering in Surprise, AZ

Available

Arizona utilities offer net metering or net billing programs. Policies vary by utility, with APS and SRP having different rate structures for solar customers.

Solar Renewable Energy Credits (SRECs) in Surprise

Not Available

Arizona does not have a traditional SREC market, but the state's Renewable Energy Standard requires utilities to source a portion of energy from distributed generation.

Tax Exemptions in Surprise

Property Tax Exemption
Solar systems in Surprise are exempt from property tax assessment increases
Sales Tax Exemption
Solar equipment purchases are exempt from state sales tax

How to Claim Solar Incentives in Surprise

  1. Install your solar system: Work with a qualified Surprise solar installer to design and install your system.
  2. Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
  3. Apply for state programs: Contact your Arizona energy office or local Surprise utility to apply for available incentives.
  4. Set up net metering: Contact your utility in Surprise to set up net metering and start earning credits.
  5. Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.

Solar Incentives FAQ - Surprise, AZ

Surprise homeowners can take advantage of the 30% federal solar tax credit, plus 4 state-level incentive programs, net metering. These incentives can reduce your total solar cost by 30-50%.

The 30% federal tax credit alone can save Surprise homeowners approximately $4.8k on a typical system. Combined with Arizona state programs, total savings over 25 years can reach $42k or more.

Arizona utilities offer net metering or net billing programs. Policies vary by utility, with APS and SRP having different rate structures for solar customers.

To claim the 30% federal ITC, Surprise homeowners need to file IRS Form 5695 with their annual tax return. The credit applies to the full cost of your solar system including equipment and installation. You must own the system (not lease it) to claim the credit.

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30%Federal Tax Credit
25+Year Savings
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