Arizona · Tax exemption
AZ Solar Property Tax Exemption
Removes a tax burden residential solar owners in Arizona would otherwise carry -- see what it covers, eligibility, and payback impact below.
- Full property tax ex…
- 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 AZ Solar Property Tax Exemption stacks on top of that, on top of any federal credit.
- Full property …
- 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
Solar equipment added to a home is fully exempt from Arizona property tax assessment.
Program at a glance
- Program type
- Tax exemption
- Eligible customers
- Residential
- Stated benefit
- Full property tax exemption
- 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 tax exemption 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 Arizona tracks 4 incentive types; 1 are tax exemptions like this one, removing a cost solar owners would otherwise carry, on top of the state's other program types.
How this incentive fits Arizona's solar picture
The AZ Solar Property Tax Exemption removes a tax burden solar owners would otherwise carry, one of Arizona's DSIRE-tracked solar incentive programs. Eligibility is scoped to residential customers, with a stated benefit of Full property tax exemption. 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 tax exemption 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 Net Energy Metering, APS Renewable Energy Incentive Program, 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 AZ Solar Property Tax Exemption?
How does the AZ Solar Property Tax Exemption work?
Who is eligible for the AZ Solar Property Tax Exemption?
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.