Written by Dean Mahmoud, CEO, and checked by Trevor Guilday, founder.Prices from the September 2026 Cost Index. Utility rates read September 30 to October 7, 2026. Updated October 14, 2026.
A typical Arizona home system is 9.33 kW and costs about $23,885 in cash at $2.56 per watt, or $22,885 after the $1,000 state tax credit. On an APS bill it pays for itself in about 17.6 to 21.3 years. Power you send to the grid earns 5.554¢ at APS, and that rate stays fixed for 10 years from the day your installer applies.
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Every kWh your panels make is worth one of two prices at APS. Using more of it at home, while the sun is up, is what shortens the payback.
| Share used at home | Year-one savings | After yearly costs | Simple payback |
|---|---|---|---|
| 40% at home, 60% sent to APS | $1,381 | $1,074 | 21.3 years |
| 60% at home, someone home by day | $1,608 | $1,301 | 17.6 years |
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The name at the top of your bill sets the export rate, the rate plan you must take and any battery payment.
For applications from September 1, 2026 through August 31, 2027, fixed for 10 years. Solar homes take a time-of-use plan that costs more from 4 p.m. to 7 p.m. on weekdays, and pay a grid access charge.
Next: ask for savings priced at 5.554¢ for exports and your plan’s price for home use.
On price plans E-16 and E-28, from the May 2026 billing cycle. SRP resets it each May for every home on those plans, and the state regulator does not set SRP’s prices. E-16 has a demand charge; E-28 does not.
Next: ask which SRP plan the savings use, and price exports at 1.87¢.
For applications since October 1, 2026, fixed for 10 years. Applications sent in before that date keep 5.13¢. Solar homes take a TEP time-of-use plan.
Next: check the application date on your quote against October 1.
| Utility | Rate per kWh sent out | 1,000 kWh sent out earn | How long it holds |
|---|---|---|---|
| APS | 5.554¢ | $55.54 | 10 years |
| UNS Electric | 5.51¢ | $55.10 | 10 years |
| TEP | 4.62¢ | $46.20 | 10 years |
| Trico | 3.124¢ | $31.24 | 10 years |
| SRP, plans E-16 and E-28 | 1.87¢ | $18.70 | Until the next May reset |
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UNS Electric serves Mohave and Santa Cruz counties. Its 5.51¢ rate applies to applications since October 1, 2026; earlier applications get 6.12¢. Trico, a co-op near Tucson, pays 3.124¢ under Schedule NM1 and charges solar members $3.38 a month for data, with a minimum bill of about $25. Other co-ops and city utilities set their own rates, so ask for the rate, how long it holds and any monthly solar charge in writing.
Some guides list solar rebates from rural co-ops. We could not confirm one on a co-op’s own page, so none is listed here.
Unused export credits roll to the next bill. APS sends a check after the December bill if more than $25 is left. TEP and UNS Electric pay out a balance over $10 on the October bill. APS and TEP homes that already had net metering keep it for up to 20 years from the day their system was connected. APS closed net metering to new customers on September 1, 2017.
At APS, TEP, UNS Electric and Trico, the export rate on the day your installer files the interconnection application stays with your system. Each new year of applicants can get a lower rate.
From the day your system is connected, at APS, TEP, UNS Electric and Trico.
Installed and approved within 180 days of the application, or 270 if APS or another party causes the delay.
The most the APS, TEP and UNS Electric rate for new applicants can fall each year.
SRP’s rate is not fixed. It changes for every home on its solar plans.
| Utility | Rate for new applications | Previous rate | Next change |
|---|---|---|---|
| APS | 5.554¢ from Sep 1, 2026 | 6.171¢ | After August 31, 2027 |
| TEP | 4.62¢ from Oct 1, 2026 | 5.13¢ | Each October 1 |
| UNS Electric | 5.51¢ from Oct 1, 2026 | 6.12¢ | Each October 1 |
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If you later add more than 10% or 1 kW of panels, whichever is greater, APS and TEP move your system to the newer rate.
The September 2026 benchmark, $0.33 below the US average. These are modeled cash prices, not quotes we collected.
System size | Power made a year | Cash price | After the $1,000 credit |
|---|---|---|---|
5 kW | 8,945 kWh | $12,800 | $11,800 |
8 kW | 14,312 kWh | $20,480 | $19,480 |
9.33 kW (typical) | 16,691 kWh | $23,885 | $22,885 |
12 kW | 21,468 kWh | $30,720 | $29,720 |
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The federal homeowner credit is gone, but Arizona’s own credit is still in state law, with no end date.
25% of the cost, capped at $1,000 per home for good. File Form 310 with Form 301 and your state return. Unused credit carries forward up to 5 years.
Deducted from transaction privilege tax when the seller is a registered solar energy retailer. Leased equipment too.
A system built mainly for your own home adds no taxable value. Nothing to file.
APS pays $110 per average kW from May 1 to October 31. TEP pays $120 per kW each summer and winter season.
Way to pay | Who owns the panels | $1,000 state credit | Check before you sign |
|---|---|---|---|
Cash | You | You claim it | Seller’s cost statement for Form 310 |
Loan | You | You claim it | Financed total next to the cash price |
Lease | The company | Not available | Yearly increase; transfer or buyout if you sell |
PPA | The company | Not available | Price per kWh; transfer or buyout if you sell |
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Three companies with active Arizona Registrar of Contractors (ROC) licenses, A to Z, not ranked. Facts from their own sites and the ROC registry, read October 13 and 14, 2026.
None of these three companies buys homeowner leads from EcoGen America. How we make money. How we check installers.
Ask each installer to write down your utility’s export rate and the application date it depends on.
Start your Arizona solar evaluationEcoGen America does not sell or install solar. When you request quotes, we pass your request to solar providers serving your area, and they pay us for the introduction. Providers can include installers, solar marketplaces and lead exchanges, and more than one may contact you. You never pay us. Privacy policy
Installer licenses: Arizona Registrar of Contractors search, checked October 13, 2026.
CEO of EcoGen America. Since 2021 he has connected homeowners with residential solar installers in all 50 states.
About Dean
Founder of EcoGen America. He has worked in residential solar since 2016 and maintains the EcoGen Solar Cost Index.
About TrevorEditorial standardsCost Index methodologyVerified Installer methodology