How to get the Arizona Solar Tax Credit in 2026
Published: Jul 14, 2023
How to get the Arizona Solar Tax Credit in 2026
Updated: February 4, 2026
Solar energy remains a smart, sustainable choice for Arizona residents and businesses, offering a range of financial incentives to make the transition easier. As we approach 2026, it’s more important than ever to take advantage of these benefits and explore new solar leasing initiatives. Here’s everything you need to know about maximizing savings while adopting clean energy solutions.
Arizona Solar Tax Credit and Arizona Tax Rebates
Arizona continues to offer substantial incentives to encourage solar adoption. Residents receive a state solar tax credit of up to $1,000, which can be combined with the federal tax credit for even greater savings. Arizona’s Tax Rebate program provides up to $1,000 for residential systems and $5,000 for commercial installations, making the upfront cost of solar more manageable.
Solar Leasing Initiatives in Arizona
In 2026, solar leasing is emerging as an increasingly attractive option for those who want to go solar without the upfront costs of purchasing a system. Leasing programs allow homeowners and businesses to rent solar panels and pay a fixed monthly fee, often with little to no upfront payment. This ensures access to clean, renewable energy without the financial commitment of ownership.
Benefits of Solar Leasing:
- No large upfront installation costs.
- Maintenance and repairs are typically included.
- Immediate access to energy savings without worrying about tax credits or rebates.
While solar leasing doesn’t qualify for federal or state tax credits, it’s a great option for those who want to reduce energy costs with minimal financial investment.
Arizona Energy Equipment Sales Tax Exemption
Arizona continues to exempt solar equipment from sales tax. This applies to the purchase of solar panels, inverters, batteries, and mounting hardware, reducing the overall cost of going solar. The tax exemption is automatically applied at the time of purchase, ensuring a hassle-free process for consumers. Even if you choose to lease your solar system, the exemption helps keep costs lower for equipment installers, which may be reflected in your lease pricing.
Arizona Energy Equipment Property Tax Exemption
Solar panels can increase your home’s value, but Arizona ensures this doesn’t lead to higher property taxes. The Energy Equipment Property Tax Exemption ensures that the added value from a solar system won’t raise your property tax bill. This makes installing solar panels a financially sound long-term investment, even for those considering leasing options.
Why Make the Switch in 2026?
Utility companies continue to raise rates while relying on solar energy for a fraction of their electricity supply. Why not take control of your energy costs? Whether you purchase or lease, solar adoption in Arizona is easier than ever, thanks to a combination of federal and state incentives, sales tax exemptions, and property tax protections.
The Main Takeaway
Arizona residents and businesses have a unique opportunity to save on energy costs while helping the state achieve its renewable energy goals. By acting before the 2026 expiration of the federal tax credit, you can maximize your savings and enjoy the long-term benefits of clean energy. For those unable to purchase solar outright, leasing offers a cost-effective way to reduce your carbon footprint and lower utility bills.
Ready to go solar? Contact Solar Topps today for a personalized quote, whether you’re interested in residential installations, commercial systems, or leasing options. We proudly serve Phoenix, Scottsdale, Paradise Valley, Chandler, Mesa, Gilbert, and the entire state of Arizona!
Sources:
https://www.seia.org/initiatives/solar-investment-tax-credit-itc
https://www.forbes.com/home-improvement/solar/solar-tax-credit-by-state/
Renewable Energy Standard and Tariff | Arizona Corporation Commission (azcc.gov)
