If you are researching solar this year, you are probably asking a few common questions. What solar rebates are available in AZ? Does Arizona still have a solar tax credit? What is the APS solar buyback rate? And is the federal solar tax credit still available in 2026?
This guide breaks down Arizona solar tax credits, rebates, and incentives for 2026 so you know exactly what still applies. While some major programs have changed, Arizona homeowners, including those in Camp Verde and Northern Arizona, can still take advantage of several valuable solar incentives.
Federal Solar Tax Credit (What Changed in 2026)
For years, the federal Residential Clean Energy Credit allowed homeowners to claim up to 30 percent of the cost of a solar installation. This was one of the most widely used solar incentives across the country. However, this credit is no longer available for residential systems placed in service after December 31, 2025.
In 2026, homeowners who purchase a solar system should not expect to claim a federal tax credit on their personal tax return. This marks a major shift compared to previous years and changes how many homeowners evaluate the cost of going solar.
There is still a way some homeowners may see a similar 30 percent value, but it works differently. In many cases, that benefit is now tied to third-party ownership models such as solar leases or power purchase agreements. In these setups, the installer may claim a commercial tax credit and pass some of that value along through lower monthly payments or reduced system pricing.
Because of this change, homeowners in 2026 are placing more focus on state incentives, utility programs, and long-term energy savings rather than relying on a large federal tax credit.
Arizona State Solar Tax Credit (2026)
Arizona still offers a state solar tax credit for homeowners who purchase their system. The Residential Solar Energy Credit allows you to claim 25 percent of your system cost, up to a maximum of $1,000, on your Arizona state income tax return.
This is one of the most important Arizona solar tax credits available in 2026. While it is smaller than the former federal incentive, it still helps reduce upfront costs and improves the overall value of your solar investment over time.
Arizona Solar Sales Tax Exemption
Arizona also provides a solar sales tax exemption, which means you do not pay state sales tax on solar equipment. This reduces the total cost of your system at the time of purchase.
Unlike a tax credit, this benefit is applied automatically, so you see the savings upfront. For many homeowners, this is an easy way to lower installation costs without needing to claim anything later.
Arizona Solar Property Tax Exemption
Solar can increase your home’s value, but Arizona protects homeowners from paying higher property taxes because of that increase. Solar energy systems are excluded from property tax assessments.
For homeowners in Camp Verde and across Northern Arizona, this means you can benefit from increased home value without an increase in property taxes tied directly to your solar system.
APS Solar Buyback Rate and Net Billing
If you are an APS customer, your system will operate under a net billing structure instead of traditional net metering. When your solar system produces more electricity than your home is using, that excess energy is sent to the grid in exchange for bill credits at a set rate.
The APS solar buyback rate in 2026 is typically lower than the retail electricity rate. Because of this, the greatest savings usually come from using your solar energy directly in your home rather than exporting it. A properly designed system that matches your energy usage can help maximize your overall savings.
Are There Arizona Solar Rebates in 2026?
Arizona does not offer a statewide cash rebate program for residential solar installations. This means most homeowners will not receive a direct rebate check for going solar.
Instead, Arizona solar rebates and incentives in 2026 come from a combination of tax credits, tax exemptions, and long-term reductions in electricity costs. Some local or installer-specific offers may exist, but they vary and are not guaranteed statewide.
What Arizona Solar Incentives Are Still Available in 2026?
Even with the federal residential credit no longer available, there are still several Arizona solar incentives in 2026 that homeowners can take advantage of. These include the state solar tax credit, the sales tax exemption on equipment, and the property tax exemption that protects your home’s assessed value. APS customers may also benefit from net billing credits for excess energy sent to the grid.
These incentives, combined with long-term energy savings, continue to make solar a practical option for many Arizona homeowners.
Is Solar Still Worth It in Arizona in 2026?
Many homeowners are asking whether solar still makes sense without the federal tax credit. In Arizona, strong sunlight and rising utility rates still create opportunities for long-term savings.
The difference in 2026 is that value comes more from energy savings and system design rather than a large upfront incentive. A system that is properly sized for your home and usage can still deliver meaningful financial benefits over time.
Thinking About Solar in Camp Verde or Northern Arizona?
If you are considering solar in Camp Verde or anywhere in Northern Arizona, it is important to understand how Arizona solar incentives in 2026 apply to your specific home. Factors like roof layout, shading, and utility provider all play a role in your results.
Working with a Northern Arizona solar company can help you evaluate your options, understand what incentives you may still qualify for, and determine whether solar is the right fit for your property.
