Best Solar Companies in Arizona

National Weather Service statistics show that Arizona is the sunniest state in the USA [1]. Arizona has 286 sunny days on average each year, which is 81 more days than the average for the country as a whole [2].

As of now, Arizona ranks fifth in the total capacity of solar energy installed [3]. The state gets just under 10 percent of its electricity from solar sources, but given Arizona’s vast exposure to sunlight it is clear this percentage has the potential to rise significantly in the coming years [4].

Arizona homeowners interested in solar energy can take comfort from the fact that solar energy costs less in their state than in most places. The price of a complete solar energy system in Arizona ranges from between $2.54 to $2.64 per watt of electrical capacity installed, depending on the size of the solar photovoltaic array (larger systems are a bit less costly) [5].

At the present time, the average cost for solar energy in the United States is $3.00 per watt of capacity installed, so Arizona homeowners who take the plunge into solar will pay 12 to 15 percent less than the average American solar purchaser [6].

When accounting for inflation, the adjusted cost of electricity purchased from the grid is expected to average about 22.5 cents per kilowatt hour over the next 25 years [7]. In contrast, the adjusted cost of electricity produced by a solar panel array is just 4.5 cents per kilowatt hour, which highlights just how much of a long-term bargain solar energy is for most Arizona homeowners [8].

Best solar companies in Arizona

Solar Company	Greentumble Rating Score
SunPower	5.0
Renova Energy	4.8
Elevation	4.8
Arizona Solar Wave	4.7
ADT Solar	4.7
Palmetto Solar	4.5
Sun Valley Solar Solutions	4.3
Sunny Energy	4.3
Verde Solar Power	4.2
Solar Optimum	4.0

Best solar energy company in Arizona: SunPower

Recognized as one of the premier solar energy installers in the American Southwest, SunPower has introduced thousands of Arizona homeowners to the money-saving wonders of solar energy. Its installation teams are highly skilled and experienced, and they can produce a customized installation plan for each home that perfectly matches a homeowner’s preferences.

SunPower’s perks for homeowners include:

#1 High-efficiency solar panels: SunPower’s patented Equinox Solar Energy System can be constructed from one of three types of SunPower solar panels, all of which are among the most efficient and reliable solar panels available in the industry.

#2 Free expert home evaluations: SunPower’s trained professionals can evaluate your rooftop or ground space and give you a precise idea of what your solar needs would be. Your initial free consultation can take place in person or online.

#3 Virtual installation software: The unique Design Studio app from SunPower will let you create a customized solar installation for your home all on your own, so you can see for yourself how solar panels will decorate and enhance your property.

#4 Fully integrated battery storage: For 24-hour, 365-day reliance, you can connect your Equinox solar panel array to SunPower’s expansive SunVault Battery Storage system, which can take you completely off-the-grid if that is your preference.

#5 Flexible financing: SunPower representatives can help you select a consumer-friendly financing package that will facilitate fast and affordable solar panel installation.

#6 An unprecedented long-term warranty: SunPower’s 25-year warranty on equipment performance, parts and labor offers the most comprehensive protection available for solar homeowners anywhere.

If you want to go solar in Arizona, SunPower can provide you with a comprehensive, integrated solar energy and battery storage solution that will allow you to achieve true energy independence. 

Runner Up: Renova Energy

Renova Energy is based in California, but installs first-class solar energy systems in Arizona as well. Renova is an elite SunPower dealer, which means you’ll have access to SunPower solar panels (some of the most efficient in the industry) should you choose to contract the highly trained professionals at Renova to install solar panels on your property.

Having earned a reputation for consistently reliable customer service, Renova offers attractive solar equipment packages that are fully warranted and guaranteed to meet your home energy needs for the next two decades or more.

When you purchase the company’s RenovaPlus Advantage service plan they will handle all the cleaning and maintenance of your solar energy system, eliminating any worries you might have about the long-term performance of your rooftop panels. 

If you’re interested in doing business with Renova, one of their licensed consultation specialists can answer all of your questions about solar and tell you all about their company’s impressive record of success in a rapidly expanding industry.

How to choose the best solar company in Arizona

Recognizing a potential hot market when they see it, solar installers have moved into Arizona in impressive numbers.

There are now more than 300 solar energy companies licensed to do business in the state, all eager to assist homeowners ready to make the leap into solar.

It is therefore crucial to find a trustworthy and experienced solar contractor that stands behind their product and workmanship and remains in business during the life of your solar system. The company’s interests should align with its promises, focusing on quality workmanship and long-term satisfaction rather than just financial gains.

You can start by watching our video guide on helping you how to find the best solar panels for your home. This information should help you to make your mind when it comes to what equipment to choose and based on that you will have a better idea which solar company is more suitable to finalize your project.

To protect your investment, you should avoid getting involved with a solar company without a proven record of success. The best way to do this is to choose a solar installer that has superior online reviews and an established presence in your area. Ideally you’d be able to speak to neighbors who’ve worked with that company and can testify to their professionalism and proficiency.

We recommend getting in touch with neighbors also because some websites might feature customer reviews that appear legitimate but lack verification. For more reliable insights about the work, turn to consumer affairs websites or business rating platforms. These sources generally have more comprehensive reviews from actual customers and often follow rigorous criteria for review acceptance.

As you move forward, also ask for references from potential solar installers. Talking to previous clients can provide you with invaluable insights into the company’s actual performance, reliability, and customer service.

When collecting quotes from different companies, beware of bids that seem higher or lower than the norm. Low bids suggests low-quality equipment and untrained labor, while high bids could mean a company is trying to take advantage of you.

Maintenance and warranties also require thorough understanding. Monitoring systems help gauge your system’s performance in real-time, comparing it against forecasted data. The most common issue that solar systems have is inverter failure, which can account for a significant portion of system failures. Inverter warranties, along with warranties for solar panels, cover the potential problems in the future, and it’s crucial to understand their terms before deciding which installer you will choose.

Your decision is an important one, and you shouldn’t accept the first impressive sales pitch you encounter. You should choose at least three companies in your area to inspect your property and give you quotes, and you should select the installer that is most successful at earning your trust.

Finding a reliable solar contractor involves diligent research, good understanding of costs involved, warranties and maintenance options. The effort you put in learning about these aspects will ensure a well-informed decision and a successful solar panel installation tailored to your needs and preferences. Take your time.

Solar incentives in Arizona

In the United States you won’t have to pay the full cost of a solar home installation. There are a multitude of credits and rebates available that can help reduce the size of your investment, including some that are exclusively reserved for new solar homeowners in Arizona. 

#1 Residential Arizona Solar Tax Credit

If you put solar or wind energy equipment at your home, you can get this special discount on your taxes. You can deduct 25 percent of the cost of your newly installed solar panels from your Arizona state income taxes, although the size of your total deduction cannot exceed $1,000 [9].

You can use this credit when you pay your taxes, and you can use it in the year you installed the solar or wind equipment. If your credit is more than the taxes you owe, you can use the extra credit for up to five more years.

#2 Energy Equipment Property Tax Exemption

When you install a solar energy system in Arizona, your property tax assessment will remain unchanged [10].

This is a meaningful exemption, since a study by the real estate marketplace website Zillow found that rooftop solar panels will increase a home’s value by 4.1 percent on average.

This exemption originally started in June 2006 and was only for “solar energy devices” used on-site. A solar energy device in this case includes even passive systems that store sunlight for later use like a solar wall. These devices are seen as not adding value to your property for tax purposes.

In July 2009, the exemption got bigger. It now covers even other renewable energy technology options, plus energy efficient building parts like Energy Star windows.

To get this property tax exemption, you have to show proof that you bought and installed the eligible equipment and how high was the final cost of your purchase. You need to give the documentation to your county assessor at least six months before they decide how much your property is worth for taxes.

#3 Solar Equipment Sales Tax

Solar panels are exempt from sales taxes in Arizona [12]. This means you won’t have to pay the regular sales tax when you buy the solar photovoltaic equipment to generate energy. And it’s not just for buying them – if you hire a company to install them, you can still get this tax exemption.

Since the current sales tax in Arizona is 5.6 percent, this solar incentive represents a significant saving. While the state gives this tax exemption, some cities might still have a small tax on these sales, usually between 0.5% to 2%. So, it is good to check with your city to see if this applies.

This tax exemption also covers solar water heater equipment and solar-powered pumps. But it doesn’t include batteries for storing generated solar power.

If you want to benefit from this tax exemption, the company selling or installing the solar equipment must register with the Arizona Department of Revenue. They should fill out a form called “Arizona Form 6015, Solar Energy Devices – Application for Registration.”

#4 Arizona Net Billing

Since 2017, Arizona’s equivalent of net metering is known as net billing. Under this system, you’ll be granted ‘excess generation credits’ on your utility bill for any solar energy you don’t use and reroute back to the grid.

Before 2017, when you made more solar energy than you used, you got a credit for it. You could use this credit later when you needed more energy from the grid. Now, the credit is a bit different. It’s based on what it costs the utility to make energy. You get a credit for what your solar system sends back to the grid, but it’s not as much as before.

These credits will be calculated at a rate that is between five and 30 percent lower than the current retail cost of electricity (different utility companies offer different rates) [13].

You can apply for net billing if you have a solar, wind, hydroelectric, geothermal, biomass, biogas, combined heat and power, or fuel cell system. The system has to be located at your property and shouldn’t make more than 125% of the energy you normally use. If your energy use isn’t known, your solar system can’t make more energy than what your connection can handle.

The credit you get is decided by the Arizona Corporation Commission (ACC). It makes around 10.45 cents per kWh (Arizona Public Service), 8.68 cents per kWh (Tucson Electric Power), and 10.35 cents per kWh (UNS Electric).

If your solar system makes more energy than you need, you keep the extra credit for as long as you want. The utility pays you if the credit is more than $25 (Arizona Public Service) or $10 (Tucson Electric Power and UNS Electric).

These rules are not valid for all areas in Arizona equally, though. Some areas have different local rules for net billing.

More information about the program is available here.

#5 Federal Solar Investment Tax Credit

The Solar Investment Tax Credit (ITC) has been a crucial driving force behind the remarkable expansion of the American solar sector. Over the past 16 years, since the introduction of this incentive, the solar industry has witnessed an astonishing growth of 10,000%.

Under the terms of the Federal Solar Investment Tax Credit (ITC), you can deduct up to 30 percent of the cost of your solar energy installation from the amount due on your federal income taxes.

Through the ITC, both residential and commercial solar projects enjoy a substantial 30 percent reduction in taxes, effectively dollar for dollar, extending until 2032. Initially designed to gradually phase out, this process has fortunately been postponed due to the enactment of the Inflation Reduction Act in August 2022.

#6 Energy Efficient Mortgages for Solar Systems

Energy Efficient Mortgages (EEMs) are a great way for homeowners to either upgrade their existing homes with energy-saving improvements or afford new energy-efficient homes, and this applies to solar homes as well.

These special loans are backed by the U.S. federal government through programs like the Federal Housing Authority (FHA) and Veterans Affairs (VA).

If you’re an existing homeowner, the FHA lets you add up to 100% of the cost of energy efficiency improvements to your mortgage loan. There are some limits, like the value of the property or a certain percentage of the loan limit.

#7 Mohave Electric Cooperative Incentive Program on Solar Energy

Mohave Electric Cooperative is offering a SunWatts Renewable Energy Incentive Program. This program provides rebates to homeowners who decide to install solar, wind, or solar water heating systems at their homes.

For photovoltaic systems in homes, there’s a rebate of 5 cents per watt of power. The maximum incentive is $2,500 for both residential installations. Unfortunately, leased systems don’t qualify for these incentives.

However, if you’re using backup battery units with your renewable energy system, you can also get a rebate for the battery. You can find more details about the battery rebate on their website.

You must submit your reservation and application to get this rebate before starting the installation work.

#8 Green Building Incentives

Green building incentives are locally based incentives for homeowners interested in environmentally-friendly housing and adopting measures for saving energy and water.

The program offers helpful support like advice on building, permits for green construction, educational talks, a guidebook for homeowners, and even recognition on the local municipal websites. There are also free materials like signs for construction sites that show a project is being built using green practices. The city reviews and checks green building projects as they’re being built. When construction is done, the project gets a special green certificate.

To get these benefits, projects have to follow a checklist for green home features. Here is one example from the Scottsdale program.

Arizona homeowners are coveting the solar energy option

The sky is the limit for solar energy in Arizona. Research by Google’s Project Sunroof found that 94 percent of the state’s buildings are viable locations for solar panels [15]. Since supply of sunlight is no problem, solar energy’s growth potential in Arizona is immense.

Taking all tax credits and other financial incentives into account, it costs the average homeowner in Arizona $11,071 to install a six-kilowatt solar panel array for a modest-sized home, and $17,752 to install a 10-kilowatt solar system to satisfy the energy needs of a larger residence [16].

This translates to a 7.1 to a 8.7-year payback period, which describes how long it will take before the money you save on electricity surpasses what you spent to install your solar energy system [17]. After factoring in some limited maintenance costs, your solar panels could save you $30,000 on electricity costs over the next 25 to 30 years [18].

It’s easy to see why Arizona homeowners are attracted to solar energy. Solar has a bright future in the state, as bright as the state’s cloudless skies on a hot summer day.