Solar in Arizona 2026: Highest Production, Net Billing & Payback
Arizona produces more solar per kW than any state (1,755 kWh/kW). But net billing caps export value. Here is the real Arizona solar payback and whether it beats the odds.
The production king
Arizona has the best solar resource in the US — about 1,755 kWh per kW per year (NREL PVWatts v8), roughly 28% more than the national average. A 6 kW system produces ~10,500 kWh/year, enough to cover a typical home.
But net billing caps export value
APS and TEP pay export rates around 6–9¢/kWh (net billing), not full retail. With electricity at ~15.6¢/kWh, payback lands around 12–14 years for solar-only. Arizona's 25% state income tax credit (for qualifying systems) and property tax exemption help.
Best strategy in Arizona
Maximize self-consumption: daytime AC, EV charging, pool pumps. Consider a battery if your utility's export rate is low. Use the PVFig state comparison tool to see Arizona vs Texas vs California side by side.
FAQ
Is solar worth it in Arizona in 2026?
Borderline for solar-only (12–14 yr payback) due to net billing. Strong production and the 25% state credit help; self-consumption and batteries improve the math.
Does Arizona have net metering?
No — APS and TEP use net billing with export rates around 6–9¢/kWh. Older customers are grandfathered.
What is the solar production in Arizona?
About 1,755 kWh per installed kW per year — the highest in the US (NREL PVWatts v8).
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Sources
- U.S. EIA — electricity rates by state, eia.gov/electricity/monthly
- NREL PVWatts v8 — solar production by location, pvwatts.nrel.gov
- DSIRE — state incentives and net metering, dsireusa.org
- See how every figure on this page is calculated — PVFig methodology.
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