Key takeaways
- No Arizona program gives panels away today. Solar for All Arizonans was set to serve low-income homes, but it is not taking applications (checked October 5, 2026).
- “Free” solar here is a contract: a zero-down loan or a lease. Home PPAs are limited in Arizona, and the lease seller we checked offers leases only.
- Your rate plan decides the savings. New solar homes earn 5.554 cents per kWh from APS, 4.62 cents per kWh from TEP and 1.87 cents per kWh on SRP’s main solar plans for power they send to the grid.
- Only owners get the state tax credit: 25% of the cost, up to $1,000. A leased system does not qualify.
- No federal home credit for a system installed after December 31, 2025.
About this review
We read every Arizona rate, tax rule and program status on this page on the utility tariff, statute or agency page listed in the sources. Utility rates were read between September 30 and October 1, 2026. Solar for All and the lease and PPA market were rechecked on October 5, 2026. It describes contracts and programs and is not tax, legal or financial advice.
How we choose sources and correct errors: editorial process and content standards.
Arizona’s version of the free-solar pitch has a catch the brochure never mentions. Your savings do not come from the panels. They come from how the system fits a time-of-use or demand-based rate plan, and a fixed zero-down payment signed against the wrong plan loses money on schedule.
There is no open Arizona program giving panels away. There are contracts, priced against rate plans, in a state where rate plans differ more than almost anywhere. Abundant sun makes the pitch easy; APS, SRP and TEP rate designs make the fine print decisive.
What happened to Solar for All in Arizona
Arizona won a federal Solar for All grant to put solar and batteries on low-income homes, including rural and tribal homes, through a program called Solar for All Arizonans. Status: Not taking applications. The Governor’s Office of Resiliency says the program is unavailable until further notice after EPA’s termination notice of August 7, 2025. Federal courts ruled the termination unlawful in September 2026, and EPA was weighing an appeal as of October 1. Checked October 5, 2026.
The Hopi Tribe holds its own Solar for All award, for solar and batteries on homes on the reservation. Its work slowed when the money stopped, and it runs through the tribe’s utility, not through private sellers. If a seller says you qualify for “the state program” today, ask for the program name in writing. The Office of Resiliency page is where a restart would be announced.
The Claims vs What Your Rate Plan Does to Them
| The pitch says | What Arizona rate design does to it |
|---|---|
| “The system pays for itself” | Only if its output lines up with your plan’s expensive hours. Midday power you send out earns 5.554 cents per kWh at APS, 4.62 cents per kWh at TEP and 1.87 cents per kWh on SRP’s main solar plans, against a statewide average price of 15.40 cents per kWh. |
| “Fixed payment, predictable savings” | The payment can rise on an escalator (a yearly increase written into the contract), while the value of your power moves with time-of-use windows and, on a demand plan, with your busiest evening moment. |
| “Works for every home” | APS, SRP and TEP are three different rule books. A contract modeled on the wrong one is mispriced from day one. |
| “Add a battery later” | Under time-of-use and demand plans, a battery is often what makes the deal work. “Later” is where the math dies. |
Net metering, where every kWh (kilowatt-hour, the unit on your bill) you send out offsets one you buy, closed to new APS customers on September 1, 2017. New solar homes now get a set export rate instead. APS, TEP, UNS Electric and Trico fix that rate for 10 years from the day you connect. SRP does not: it resets its rate each May. At APS, credit you do not use moves to the next bill, and credit left after the December bill is paid by check if it is over $25; a smaller balance carries into the next year. Our Arizona solar incentives guide covers each utility’s rules in full.
Zero-Down Solar in Arizona: Loan or Lease, Priced on Your Plan
Without an open program, zero-down solar in Arizona means borrowing the full price or letting a company own the panels. The state adds one twist: its solar tax credit goes only to the person who owns the system, so a lease leaves it unclaimed.
| Option | Sold to Arizona homes? | State tax credit | Your cost rides on |
|---|---|---|---|
| Zero-down solar loan | Yes, through installers and lenders | You claim up to $1,000 on Arizona Form 310 | The loan rate, any dealer fee in the financed total, and your export rate |
Pros and cons in Arizona: zero-down loanPros
Cons
Can fit if: the cash price is close to the Arizona average and the system is sized to the power you use, not the power you could export. | |||
| Solar lease | Yes, in APS, SRP, TEP, UNS Electric and some co-op areas | None: leased systems do not qualify | The monthly payment, any escalator, and the rate plan it was modeled on |
Pros and cons in Arizona: leasePros
Cons
Can fit if: the first-year payment, with any escalator, sits well below what you save at your utility’s current export rate. | |||
| Power purchase agreement (PPA) | Limited by law; we found no home PPA on offer | None | A price per kWh the panels make |
Pros and cons in Arizona: PPAPros
Cons
Can fit if: almost never for an Arizona home. If offered one, ask for the legal basis in writing. | |||
Lease or PPA? In Arizona the choice is really lease or loan. DSIRE’s May 2026 map limits third-party PPAs in Arizona to certain sectors, citing an Arizona Corporation Commission decision that covers schools, governments and other nonprofits. Palmetto’s Arizona page (October 2026) says it offers leases, not PPAs, in the state. Compare loan rates and lifetime cost in our solar financing guide.
The ownership gap is easy to price. A typical 9.33 kW Arizona system costs about $23,885 before incentives. 25% of that is $5,971, but the cap holds the credit to $1,000, so an owner’s net cost is about $22,885. With a lease, that $1,000 simply goes unclaimed.
APS, SRP and TEP: Three Rule Books, Three Different Paybacks
APS, TEP, UNS Electric and Trico answer to the Arizona Corporation Commission. SRP is a public power district: it sets its own prices, and no APS or TEP number applies to an SRP home.
| Utility | Export rate, new applications | 1,000 exported kWh earn | Is the rate fixed? | Plan you must be on |
|---|---|---|---|---|
| APSMuch of metro Phoenix, Flagstaff, Prescott, Yuma | 5.554 cents per kWh | $55.54 | 10 years from connection, if approved within 180 days | Time-of-use, 4 p.m. to 7 p.m. on weekdays; one version adds a demand charge |
| SRPMuch of the Phoenix area; sets its own prices | 1.87 cents per kWh | $18.70 | No: reset each May | E-16 and E-28; E-16 has a demand charge |
| TEPTucson and the surrounding area | 4.62 cents per kWh | $46.20 | 10 years from connection | Time-of-use |
| UNS Electric or TricoMohave and Santa Cruz counties; co-op near Tucson | 5.51 cents per kWh (UNS), 3.124 cents per kWh (Trico) | $55.10 or $31.24 | 10 years | UNS: time-of-use. Trico adds a $3.38 monthly data charge |
The rate follows the date your installer applies to connect. APS applications sent in before September 1, 2026 keep 6.171 cents per kWh; TEP applications before October 1, 2026 keep 5.13 cents per kWh. SRP’s older plan E-13 still pays 3.45 cents per kWh, but SRP ends it in November 2029. A demand charge is a fee set by your single busiest stretch of use in the evening window, so one hot evening can cost more than a month of exports earns.
You Likely Will Not Qualify for Anything Free If
- You expect a government giveaway. Arizona’s low-income solar program is not taking applications, and private sellers cannot sign you up for it.
- You cannot name your rate plan. Then neither can the deal’s math.
- You are on an SRP demand plan and the quote never mentions demand. That is the most common Arizona mispricing.
- Your use is evening-heavy and the offer leaves out a battery. You would export cheap at noon and buy expensive at 7 p.m., with a payment on top.
The Arizona Ten-Minute Audit
- Which utility and exact rate plan did the savings model use?
In writing. APS, SRP and TEP numbers are not interchangeable.
- What export rate did it assume, and from which application date?
It should match today’s tariff, not last year’s.
- On SRP or an APS demand plan: what is my demand charge before and after?
A quote without both numbers has not modeled your bill.
- What is the cash price of the same system?
Compare it with what solar costs in Arizona, and ask who claims the $1,000 state credit.
- Is there an escalator, and what is the final-year payment?
Test it against your plan’s actual price history, not “rates always rise”. See solar lease exit options for the transfer and buyout terms.
Pause if a seller claims a state or federal program pays for your panels, will not name your rate plan, or wants a signature today.
Read our guide to solar scam red flags, then look up each bidder in our Arizona solar companies guide.
Price the Contract Against Your Actual Rate Plan
In Arizona the rate plan is the product. Ask every installer for the cash price, the zero-down price, the plan it modeled and the export rate it used, side by side.
Enter your ZIP code to compare Arizona offers
This is a commercial quote request, not a Solar for All Arizonans application. Which installers and lenders respond depends on your ZIP code and utility. For the state program, watch the official program page.
How EcoGen is paid
EcoGen 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.
Read how we make money and our privacy policy.
More Arizona Solar Guides
- Arizona solar guideUtilities, incentives and installers in one place
- Is solar worth it in Arizona?The payback math for your home
- Arizona solar incentivesThe tax credit and each utility’s export rate
- Cost of solar in ArizonaCash prices to test a payment against
- Arizona solar companiesInstallers working in the state
- Free solar panels in the USPrograms and offers in other states
Frequently Asked Questions
Are solar panels free in Arizona?
No. No open Arizona program gives panels away. “Free” offers are leases or zero-down loans, and their value depends on the rate plan they were modeled against.
Is there a no-cost solar program in Arizona?
Not one you can join today. Solar for All Arizonans was planned for low-income homes, but the state says it is unavailable until further notice. Courts ruled EPA’s cancellation unlawful in September 2026, so it may restart. Status checked October 5, 2026.
Can I get zero-down solar in Arizona?
Yes. Installers offer zero-down loans, and leases are sold in APS, SRP, TEP and other areas. With a loan you own the system and can claim the state credit of up to $1,000. With a lease the company owns it and the credit is lost. Home PPAs are limited in Arizona.
Why does my rate plan matter more than the panels?
Because exports earn far less than you pay for power: 5.554 cents per kWh at APS, 4.62 cents per kWh at TEP and 1.87 cents per kWh on SRP’s main plans. Time-of-use and demand charges then decide what each kWh is worth. A zero-down payment does not change with them.
Is a battery required for zero-down solar to work in Arizona?
Not required, but on time-of-use and demand plans it often decides whether the math works. APS pays $110 per kW and TEP $120 per kW per season for batteries that help on busy evenings. SRP lists no battery payment.
Who keeps the tax benefits in an Arizona solar lease?
The company that owns the system may claim a federal business credit. The Arizona credit goes to no one, since leased systems do not qualify. Ask whether the payment reflects any credit the company claims.
How do I check an Arizona free solar offer quickly?
Ask for the named rate plan, the export rate assumed, the demand-charge model on a demand plan, the cash price beside the payment, and the escalator. Five answers, ten minutes. Most pitches fail by question two.
Sources and review
Arizona tariff, tax and program facts were checked between September 30 and October 5, 2026, against these sources. Rates change; the utility’s current tariff always wins.
- A.R.S. 43-1083, solar tax credit
- Arizona Department of Revenue, Form 310
- A.R.S. 42-11054, property tax
- APS, Rate Rider RCP
- APS, Understanding Solar
- APS, Rider EPR-6
- APS, Storage Rewards
- SRP, Standard Electric Price Plans
- TEP, Statement of Charges
- TEP, Energy Storage Rewards
- UNS Electric, Statement of Charges
- Trico, Schedule NM1
- IRS, Residential Clean Energy Credit
- Arizona Governor’s Office of Resiliency, Solar for All Arizonans (status checked October 5, 2026)
- Cronkite News, Arizona, Hopi could see $181M in solar grants after courts reverse Trump EPA, October 1, 2026
- DSIRE / NC Clean Energy Technology Center, 3rd Party Solar PV Power Purchase Agreement map, May 2026 (checked October 5, 2026)
- Palmetto, Home solar in Arizona (lease availability by utility; checked October 5, 2026)
- IRS, FAQs on the 2025 changes to Section 25D
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