Arizona

• Arizona has an RSP of 15% by 2025, giving it a grade of C in this area.
• The state has a solar carve-out of 2.25% by 2025, giving it a grade of B in this area.
• Arizona has an average energy cost of $0.12/kWh, which is considered low.
• There is no statewide net-metering standard or policy in Arizona.
• Arizona received a grade of F on interconnection standards, indicating that the state does not have easy interconnections.
•  Incentives for installing solar panels do exist in Arizona, but have become more limited over time as utility companies come close to meeting the RPS standard.
• Arizona gives a state tax credit of 25% of the cost of an installed solar panel system with a cap of $1000.
• Sales of solar systems are exempt from sales tax in Arizona.
• Homeowners in Arizona are exempt from an increase in property tax as a result of increased property value after installing solar panels.
• Arizona does not have a low-income solar program.
• The estimated payback period for installing solar in Arizona is 11 years.
• No sources specifically addressing the number of owner-occupied units that have solar panels installed were located. It was found that approximately 12% of single-family homes in Arizona had solar panels at the end of 2019. Since the majority of single-family homes (64.8%) in Arizona are owner-occupied, we assumed that the rate of solar installation on owner-occupied single-family homes was similar to the rate for all single-family homes and used the following formula to estimate the information for row 15: 1,257,000 x .12 = 150,840.