Arizona · Rebate
APS Renewable Energy Incentive Program
A direct payment toward residential solar installs in Arizona -- see the rebate amount, eligibility, and the payback impact below.
- $75/kW AC
- stated benefit
- Residential
- eligible customers
- 10.3 yr
- Arizona baseline payback
- 4
- other Arizona programs
What it means
In Arizona, a 6 kW system already pays back in about 10.3 years on ~$1,537/year of modeled savings, and the APS Renewable Energy Incentive Program stacks on top of that, on top of any federal credit.
- $75/kW AC
- stated benefit
- 10.3 yr
- baseline payback (pre-incentive)
- 5
- Arizona programs that stack
- full
- net-metering policy
Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.
Program description
Arizona Public Service offers upfront rebate for grid-tied solar installations.
Program at a glance
- Program type
- Rebate
- Eligible customers
- Residential
- Stated benefit
- $75/kW AC
- State electricity rate
- 13.5¢/kWh
- Arizona solar score
- 61/100
How Arizona compares to the U.S. average
Why this incentive matters more (or less) here - Arizona's solar fundamentals against the national average.
Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.
Solar's trajectory in Arizona
The market this incentive operates in: total installed solar capacity in Arizona reported to the EIA.
Arizona's solar incentive stack
How this rebate sits among Arizona's 4 tracked programs, by type
- Tax exemption
Tax exemption
1 programs
- Net metering
Net metering
1 programs
- Rebate
Rebate
1 programs
- Tax credit
Tax credit
1 programs
What this shows Among Arizona's 4 tracked incentive types, 1 are rebates like this one -- a direct payment rather than a tax reduction, stacking with the state's other program types.
How this incentive fits Arizona's solar picture
The APS Renewable Energy Incentive Program pays out as a direct rebate rather than a tax credit, one of Arizona's solar incentive programs tracked in DSIRE. Eligibility is scoped to residential customers, with a stated benefit of $75/kW AC. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.
That baseline is slower than most states, which raises the stakes for every incentive on the table. Arizona averages 6.5 kWh/m²/day of usable sunlight and residential rates of 13.5¢/kWh, producing an estimated 11,388 kWh/year and $1,537 of annual utility offset on a typical 6 kW system costing $15,900. That baseline already implies a 10.3-year simple payback and a 25-year modeled net of roughly $22,525 before this incentive - every dollar this rebate delivers compresses that payback further.
A handful of other levers are worth checking alongside this one. Arizona has 5 solar incentive programs indexed in DSIRE, including adjacent options like AZ Solar Property Tax Exemption, AZ Net Energy Metering, AZ Residential Solar Tax Credit. The state's net-metering policy is classified as full, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.
Your next step
- See Arizona's full solar profile, score, irradiance, rates, payback, and every program you can claim. Arizona solar data
- Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
- Read how state and federal solar credits work together. Tax-credit guide
Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.
Other Arizona incentives
Frequently asked questions
What is the APS Renewable Energy Incentive Program?
How does the APS Renewable Energy Incentive Program work?
Who is eligible for the APS Renewable Energy Incentive Program?
How does this incentive affect solar ROI in Arizona?
Are there other solar incentives in Arizona?
Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology.