In short: Arizona has the strongest sun of any state we track and one of the steadiest grids: the average customer lost under 90 minutes of power in 2024. Power cost about 15.4¢ per kWh in July 2026, 16% below the U.S. average. The real energy risks are extreme heat and planned wildfire shutoffs, and solar exports earn far less than retail.
That combination changes the usual advice. In Arizona, solar is less about selling power to the utility and more about using it yourself, ideally with a battery, and backup power is about keeping cooling running when it is 110 degrees outside. Here is what the state’s numbers mean, with sources and dates.
Arizona at a glance
- Home electricity price: 15.38¢/kWh in July 2026 (EIA, preliminary), nearly flat from 15.34¢ a year earlier; 15.44¢ average for January to July 2026. U.S. average: 18.31¢ (EIA, July 2026).
- Outages in 2024: 88 minutes per customer including major events, 72 without them; about one interruption per customer per year (EIA-861, 2024).
- Sun: about 5.85 kWh per square meter per day in Phoenix (NASA POWER, 2001–2020), roughly 1,710 kWh per kW of panels per year by our rough estimate.
- Net metering: ended for new customers in 2017; APS and TEP use net billing with a lower export rate, and SRP sets its own.
- Plug-in (balcony) solar law: none as of October 2026.
- Electric vehicles: 141,800 battery-electric and 33,900 plug-in hybrid cars through 2025; 4,738 public charging ports at 1,538 locations, 1,520 of them DC fast (AFDC, October 2026).
- Main utilities: Arizona Public Service (about 41% of customers), Salt River Project (34%), Tucson Electric Power (13%) and UNS Electric (3%) (EIA-861, 2024).
- Top weather hazards: heat wave rated very high and wildfire relatively high; winter weather relatively moderate (FEMA National Risk Index, December 2025).
- Planned wildfire shutoffs (PSPS): yes. APS, SRP and TEP run Public Safety Power Shutoff programs; APS carried out its first shutoff on April 22, 2026, in the Flagstaff area.
Backup power in Arizona
On paper Arizona’s grid is one of the most reliable in the country: 72 minutes of outage on ordinary days in 2024 and only 16 more from major events. So why plan for backup at all? Because the outages that do happen tend to come at the worst moment. FEMA rates heat waves as Arizona’s top hazard, and a summer outage means no air conditioning. And in wildfire season the three largest utilities may switch off power lines on purpose in high-risk areas, which can last hours or days and mostly affects lines in high-risk areas.
What fits best:
- If someone in the home is vulnerable to heat or uses medical equipment: plan to keep at least one room cool. A central air conditioner is a big load; a standby or large portable generator or a large battery system can run it, while a smaller setup can run fans or a small window or mini-split unit.
- For PSPS areas: utilities aim to give notice before a shutoff, so a home battery charged by solar, or a fueled generator, can be ready before the lines go dark.
- For short outages: a portable power station covers phones, Wi-Fi, lights and a fan.
Gasoline stored in a hot garage degrades and is a fire risk; propane or natural gas is easier to keep on hand. Follow the CPSC rules for any generator: outdoors only, at least 20 feet from the house, exhaust away from windows, doors and vents, never in a garage, and battery-powered carbon monoxide alarms inside. A licensed electrician should install the transfer switch. Estimate loads with the generator sizing calculator and the battery backup calculator.
Solar in Arizona
Arizona’s sun is the best in the country for solar. Our rough estimate is about 1,710 kWh per kW of panels per year in Phoenix, and EIA counted 317,033 net-metered home solar systems in the state in 2024, about 2,278 MW. The question is not whether panels will produce, but what that power is worth.
The Arizona Corporation Commission ended net metering in a 2016 decision that took effect in 2017. APS and TEP customers now get net billing: power you use as it is produced saves the full retail price, but power you send to the grid is credited at the Resource Comparison Proxy export rate. That rate can step down by up to 10% a year, and the rate you sign up with is locked for 10 years. For new APS customers it is 5.554¢ per kWh from September 2026 to August 2027 (APS tariff). SRP is not regulated by the Commission and has its own export rate and solar price plans.
Put in numbers (estimates, not promises): each kW of panels used at home is worth about $263 a year at 15.38¢, but only about $105 a year if all of it were exported at roughly 6¢. A 6 kW system makes about 10,260 kWh a year. The more of that you use in your own home, during the day or through a battery in the evening, the faster it pays. If your plan charges more in the late afternoon and evening (time-of-use), that is exactly when solar fades. Check your plan, then run the solar potential calculator, see solar costs and read net metering vs net billing.
Arizona incentives we could confirm (check each program page before you count on it; amounts and rules change):
- Credit for Solar Energy Devices (state income tax, Form 310): 25% of the cost, up to $1,000 per residence, with up to five years of carry-forward.
- State sales tax (TPT) deduction for solar energy devices sold by registered solar retailers (A.R.S. 42-5061(M)).
- Property tax exemption: the added value of solar equipment is left out of your home’s valuation (A.R.S. 42-11054).
The federal 25D credit ended for systems completed after December 31, 2025. There is no plug-in solar law in Arizona, so plug-in kits fall under your utility’s interconnection rules. More in our solar guide and incentives page.
Home batteries in Arizona
Under net billing, a battery is the tool that turns cheap exports into full-value savings: it stores midday solar and releases it in the evening peak. It also covers PSPS events and heat-wave outages. EIA counted 10,345 battery-paired net-metered home solar systems in Arizona in 2024. One practical point: batteries do not like heat. Choose a location the maker approves, out of direct afternoon sun, since a west-facing garage wall in Phoenix can get very hot.
We found no confirmed statewide battery rebate. The state sales tax deduction above can include storage that is part of a solar energy device; ask the seller how it applies. See our home battery guide and home battery costs.
EV charging in Arizona
Arizona had 141,800 battery-electric cars through 2025, about 30 per public charging port, a thinner public network per car than many states. Home charging fills the gap. At roughly 30 kWh per 100 miles, a typical rating of the kind fueleconomy.gov lists, charging at 15.38¢ costs about $4.60 per 100 miles, or about $550 for 12,000 miles a year (estimate). Charging overnight on a time-of-use plan can lower that; charging in the late-afternoon peak can raise it.
Drive on another fuel? See every alternative fuel station in Arizona: hydrogen, propane, natural gas, E85 ethanol, biodiesel and renewable diesel.
A Level 2 charger needs a 240-volt circuit installed by a licensed electrician, with a permit where required. The federal 30D credit ended September 30, 2025, and the 30C charger credit ended for chargers placed in service after June 30, 2026. See our EV charging guide and the EV charging cost calculator.
Off-grid, small wind and micro-hydro
Arizona’s sun makes off-grid solar with batteries practical for desert and mountain properties, with a generator for long cloudy stretches; see off-grid power. Small wind is weak: NASA POWER puts the 50-meter average at about 4.7 m/s near the center of the state and 4.4 m/s around Phoenix, and small turbines sit far lower, where winds are slower. Only a measured, exposed site would justify one (wind energy). Micro-hydro needs year-round flowing water, which few Arizona properties have; we have no state data, but our hydropower page explains how it works.
Licensing and permits in Arizona
Contractors in Arizona are licensed by the Arizona Registrar of Contractors (ROC). Electrical license classifications cover solar work, and the ROC also has solar-specific classifications. Check any company on the ROC contractor search before you sign. Permits come from your city or county, HOAs may have their own rules, and your utility (APS, SRP, TEP or your co-op) must approve the interconnection of any solar or battery system before it is switched on.
Local guides in Arizona
Utilities, rates, outage records, permit offices and local programs for each area:
Where we cover in Arizona
- Phoenix: Phoenix, Scottsdale, Mesa, Chandler, Gilbert, Glendale, Peoria
- Tucson: Tucson
- Northern Arizona: Prescott, Flagstaff
Local pages for these areas will follow as we verify local information and installers.
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Arizona energy FAQs
Does Arizona still have net metering?
Not for new customers. The Arizona Corporation Commission replaced it with net billing starting in 2017. APS and TEP credit exported power at an export rate (5.554¢ per kWh for new APS customers from September 2026 to August 2027, under APS’s tariff) that is locked for 10 years at sign-up. SRP sets its own rules. Power you use yourself still saves the full retail rate.
What solar incentives does Arizona offer in 2026?
A state income tax credit of 25% of the cost, up to $1,000 per home (Form 310), a sales tax deduction on solar devices and a property tax exemption on the added value. The federal 25D credit ended for systems completed after 2025. Check each program page before you rely on it, because amounts and rules change.
What is a Public Safety Power Shutoff in Arizona?
It is a planned power cut. When wind, heat and dry fuel make wildfire risk extreme, APS, SRP and TEP may switch off lines in high-risk areas so they cannot start a fire. APS carried out its first one on April 22, 2026, near Flagstaff. Sign up for your utility’s alerts, and if you live near wildland, consider a battery or generator.
Is a home battery worth it in Arizona?
It is more useful here than in most states, because exported solar earns only a fraction of retail. A battery stores midday solar for the evening, when time-of-use plans charge the most, and keeps essentials or cooling running during a shutoff. Whether it pays depends on your rate plan and system cost.
How much does it cost to charge an EV at home in Arizona?
About $4.60 per 100 miles at the July 2026 average of 15.38¢ per kWh, assuming roughly 30 kWh per 100 miles, or about $550 a year for 12,000 miles. Off-peak overnight charging on a time-of-use plan usually costs less. This is an estimate; your car and plan decide the real figure.
Sources
Electricity prices: EIA Electric Power Monthly, July 2026 (preliminary). Outages, utilities and net-metered solar: EIA-861, 2024. Weather hazards: FEMA National Risk Index, December 2025. Sun and wind: NASA POWER, 2001–2020 averages. EV registrations and charging ports: Alternative Fuels Data Center (AFDC), 2025 registrations and station counts read October 3, 2026. Net billing: Arizona Corporation Commission decision and utility tariffs as summarized in October 2026. Incentives: Arizona state energy office and Arizona Department of Revenue, checked October 3, 2026. PSPS: APS. Licensing: Arizona Registrar of Contractors. Generator safety: CPSC.