Solar Incentives in Tucson, AZ
Complete guide to solar tax credits, rebates, and incentive programs available to Tucson homeowners in 2026.
Federal Solar Investment Tax Credit (ITC)
30% of total system cost
Tucson 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 Tucson, AZ.
Arizona State Solar Incentives for Tucson Homeowners
Arizona Residential Solar Tax Credit
Tax CreditArizona offers a state income tax credit for solar energy devices installed on residential property.
Solar Equipment Sales Tax Exemption
Sales TaxSolar energy equipment is exempt from state sales tax in Arizona, reducing the overall installation cost.
Property Tax Exemption for Solar
Property TaxThe added value of a solar installation is exempt from property tax assessment in Arizona.
APS Solar Communities Program
RebateArizona Public Service offers programs for residential solar customers including incentives for battery storage.
Net Metering in Tucson, AZ
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 Tucson
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 Tucson
How to Claim Solar Incentives in Tucson
- Install your solar system: Work with a qualified Tucson solar installer to design and install your system.
- Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
- Apply for state programs: Contact your Arizona energy office or local Tucson utility to apply for available incentives.
- Set up net metering: Contact your utility in Tucson to set up net metering and start earning credits.
- Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.
Solar Incentives FAQ - Tucson, AZ
Tucson 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 Tucson 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, Tucson 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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