Tucson, AZ Solar: 2026 Costs, Incentives & Savings
Solar Power in Tucson
With abundant sunshine year-round, Tucson is one of the best places in the country to power your home with solar. In fact, Arizona ranks 3rd in the nation for residential solar installations, and Tucson homeowners are a big part of that trend.
With Arizona electricity prices climbing 22% from 2020 to 2024, understanding your options is more valuable than ever. This guide walks you through what to expect from home solar panels in Tucson, so you can decide with confidence.
ARIZONA by the Numbers
3rd Most residential solar in the United States
295 Households have installed solar panels
6.5 Avg peak sun hours per day
~$64k Tucson average savings over 25 years
How Much Do Solar Panels Cost in Tucson, AZ?
See real solar costs for Tucson, built from our actual local installations. This calculator uses firsthand data from homes across Tucson, Oro Valley, Marana, Catalina Foothills, and Vail. Get a clear, honest estimate based on your neighborhood—no guesswork, just real numbers from real Southern Arizona projects.
System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in Arizona.
Recommended System: 8.20 kW
Your Monthly Payment
Estimated monthly cost with LightReach: $105/mo
As low as: $105/mo
Why Lease Solar?
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Cost Breakdown
Your estimated investment
- System Cost: $23,405
- Price per Watt: $2.85
- State Incentives: -$1,000
- Final Cost: $22,405
Savings
Your total financial benefit
- Monthly Savings: Average utility bill reduction $146
- Payback Period: 10.8 years
- 25-Year Savings: $63,968
Get Your Personalized Quote
Palmetto Reviews
Our experience with Palmetto has been excellent so far. Our sales representative was very patient and answered every one of our questions, until we were ready to sign up. After signing up, the process has run very smoothly, with communications and updates coming in frequently and in a timely manner. The installation process was very professional and quick, with very little disruption to our regular activities.
Maria Diaz, Tucson, Arizona
My energy bill shows me that I am in the 7 percent range for my neighborhood. Everyone else without solar electricity is in the 25% to 30% range. Palmetto helped me achieve this. Neil Tyson once said if you live in Arizona, take advantage of solar panels. Based on my experience, I would recommend Palmetto to anyone who is serious about saving money.
Darryl Hannabach, Arizona, Arizona
I had a solar panel system installed by Palmetto one year ago and so far, everything has been great. I’m averaging about 78% production versus usage, which is pretty much exactly as expected, given the number of panels the city would allow me to have. Customer service has also been fantastic!
Jeffrey Brown, Peoria, Arizona
Key Takeaways
- Tucson gets over 300 sunny days a year, making it one of the best places in the country to power your home with solar.
- Arizona electricity prices rose about 19% from 2021 to 2024, so generating your own solar power can help you gain more predictable energy costs.
- Arizona still offers valuable solar incentives, including a 25% state tax credit plus property and sales tax exemptions, even after the federal credit ended.
Tucson Electricity Prices
Tucson enjoys over 280 sunny days a year, but electricity from Tucson Electric Power still costs money. Here’s how those prices are trending.
Arizona’s average electricity price rose from 12.5 cents per kWh in 2021 to 14.9 cents in 2024, according to the U.S. Energy Information Administration. That’s roughly a 19% increase in just three years.
Solar lets Tucson homeowners generate their own power from the abundant local sunshine. By producing electricity on your roof, you can reduce how much you buy from the utility as rates continue to climb.
Utility prices tend to change over time, but the sunshine over Tucson stays steady. Installing solar can help you rely less on the grid and gain more predictable energy costs for years to come.
Price of Energy: Arizona vs National Average
| Year | Arizona | US Average |
|---|---|---|
| 2021 | 12.5¢ | 13.7¢ |
| 2022 | 14.0¢ | 15.0¢ |
| 2023 | 14.9¢ | 13.0¢ |
| 2024 | — | 16.0¢ |
Source: US Bureau of Labor Statistics, Energy Information Administration, Form 861
Tucson Area Utility Providers
In Tucson, most homes get their power from Tucson Electric Power (TEP). In 2023, TEP charged about 15.0¢ per kWh—just above the Arizona state average of 14.0¢, but below the national average of 16.0¢.
Tucson Utilities Electricity Rates
| Provider | Rate (¢/kWh) |
|---|---|
| TEP | 15.00¢ |
| AZ Average | 14.00¢ |
| US Average | 16.0¢ |
Arizona Solar Incentives
Beyond Tucson’s abundant sunshine, several solar incentives in Arizona can help lower the cost of solar panel installation for local homeowners.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Arizona Residential Solar Energy Credit | Tax Credit | Arizona homeowners can claim a state income tax credit equal to 25% of their solar system’s installed cost, up to a maximum of $1,000 per year. | Learn More |
| Arizona Solar Property Tax Exemption | Property Tax Exemption | The added value a solar energy system contributes to a home’s assessed value is fully excluded from property tax calculations. | Learn More |
| Arizona Solar Sales Tax Exemption | Sales Tax Exemption | Arizona exempts residential solar equipment and installation from the state’s 5.6% Transaction Privilege Tax (sales tax). | Learn More |
| Arizona Net Billing Policy | Net Metering | Arizona utilities have replaced traditional net metering with net billing, compensating solar homeowners for excess electricity at lower rates than retail. | Learn More |
Tucson Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Tucson enjoys over 300 sunny days a year, making it one of the best cities for solar. Its high elevation and dry desert climate help panels produce reliable energy year-round.
Solar Production in Tucson by Month
| Month | Energy Production (kWh/day) for Size | 5 kW | 7 kW | 10 kW |
|---|---|---|---|---|
| July | 47.9 kWh/day | |||
| December | 38.8 kWh/day |
Source: National Renewable Energy Laboratory (NREL) PVWatts data; Tucson, AZ
Solar Panel Systems in Tucson
We’ve mapped solar installations across the United States, right down to the neighborhood level. Explore this interactive heatmap to see how many Tucson homes have switched to solar.
Leasing Solar Panels
If you’d rather skip the upfront cost of solar, leasing is a great option in Tucson. Palmetto offers LightReach solar leasing for homes served by Tucson Electric Power (TEP).
With a lease, you pay a fixed monthly amount instead of buying the system. Palmetto owns and maintains the panels, handles repairs, and backs your production, so you don’t have to manage upkeep yourself the way you would with a cash purchase.
Frequently Asked Questions
Does Tucson, AZ have net metering?
Tucson does not have traditional net metering. Instead, Tucson Electric Power (TEP) uses a net billing program, where the extra solar energy your panels send to the grid earns a credit of about $0.0633 per kWh.
Do solar panels increase your home value in Tucson, AZ?
Yes, homes with solar panels tend to sell for about 4.1% more, and Arizona’s property tax exemption means that added value won’t raise your tax bill.
How much does it cost to go solar in Tucson, AZ?
Many Tucson homeowners go solar with a LightReach lease, starting around $105 per month with no upfront cost.
What’s the best solar company in Tucson, AZ?
When choosing a solar company in Tucson, look at experience, installation quality, financing options, and long-term support.