Commercial Solar in Arizona in 2026

Arizona averages 6.0+ peak sun hours daily in the Phoenix metro — among the highest of any major commercial solar market in the US. The state's 10% corporate tax credit for commercial solar stacks directly on top of the federal ITC, creating a potential 40-60% combined credit for qualifying projects. Property and sales tax exemptions further reduce effective project cost. APS serves most of the Phoenix metro and rural Arizona, while SRP (Salt River Project) serves the East Valley including Tempe, Mesa, Chandler, Gilbert, and Scottsdale. TEP (Tucson Electric Power) serves the Tucson metro. Our Arizona partners are active across the Phoenix metro and Tucson market. See Arizona Commerce Authority renewable energy programs for state-level guidance.

Arizona Solar Incentives 2026

  • Federal ITC (30-50%): Base 30% plus energy community and domestic content adders where applicable
  • Arizona 10% Corporate Income Tax Credit: 10% state tax credit for commercial solar investment, stacking on top of the federal ITC
  • Property Tax Exemption: Arizona exempts commercial solar from property tax assessment
  • Sales Tax Exemption (Transaction Privilege Tax): Solar equipment exempt from AZ TPT
  • APS/SRP Export Compensation: Commercial accounts receive compensation for excess solar generation under utility-specific programs
  • MACRS 5-Year Depreciation: Federal accelerated depreciation on ITC-adjusted basis
Arizona APS SRP commercial net metering export compensation distributed solar production 2026

How to Get Started With Arizona Commercial Solar

The fastest path to locking in incentives is requesting a proposal now. Our team verifies ITC eligibility, checks energy community adder status, identifies applicable state programs, and connects you with a vetted Arizona EPC. The December 31, 2027 ITC in-service deadline makes timeline certainty critical — starting the proposal and interconnection process now is essential. For more on financing, see our ESP zero cap-ex program guide and commercial solar financing comparison. For tax strategy, see our MACRS depreciation guide and 2026 tax incentives overview.

Nearby States We Serve

California, Nevada, New Mexico, Utah, and Colorado. View our full US service area.