Federal solar credit ended Dec 31, 2025
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Solar costs · Flagstaff, AZ

Solar Panel Cost in Flagstaff, Arizona

Fact-checked by Sorted & Saved data desk
Updated Data verified Nov 5, 2026

Flagstaff gets about 1,688 kWh per kW per year[1] from a rooftop solar array, according to NREL's PVWatts model at the city's coordinates. APS's residential customers paid an average of 16.45¢ per kWh[2] and used 1,034 kWh a month[2]. A system sized to that use, about 7.4 kW est.[1,2], costs roughly $19,500 to $26,500 est.[1,2,3] before incentives, and pays back in about 15 years est.[1,2,3,4] for a cash buyer.

On this page [ 8 ]

Flagstaff solar at a glance

Output per kW of panels1,688 kWh/yr[1]PVWatts, this city
Sunlight on panels6.22 kWh/m²/day[1]Annual average
APS avg. price16.45¢/kWh[2]2024 average, bundled customers
APS avg. home use1,034 kWh/mo[2]2024 average
Typical system7.4 kWCovers 100% of use
Typical price$22,900Estimate, before incentives
Year-1 savings$1,350Estimate
Payback15 yearsEstimate, cash purchase
Estimated monthly output of a 7.4 kW system in Flagstaff (PVWatts, typical weather year)kWh / month

APS credits exports at 5.55¢ per kWh (Rate Rider RCP (Resource Comparison Proxy export rate)). Solar customers also pay $0.24 per kW of panels a month, included in the estimates. Assumptions: methodology.

How Arizona Public Service treats solar

UtilityExport policyExport creditAvg. residential priceMonthly basic charge
APSRate Rider RCP (Resource Comparison Proxy export rate)5.55¢ per kWh, locked 10 years[4]16.45¢ per kWh[2]$13.93[5]

Arizona Public Service: Rate Rider RCP (Resource Comparison Proxy export rate)

APS meters exported solar energy instantaneously and credits it on the monthly bill at the RCP rate in effect when the customer submitted the interconnection application, provided installation and AHJ approval are completed within 180 days (270 if delayed by APS or a third party). The rate is locked for 10 years from interconnection, then floats with the current annual RCP. Credits roll forward monthly; after the December bill, balances over $25 are paid by check. Export rates are locked for 10 years from interconnection.

  • Basic service charge: $0.458 per day (about $13.93/month) on Time-of-Use 4pm-7pm Weekdays (TOU-E), the R-3 demand plan, and R-1 medium/large tiers; R-1 small tier is $0.362/day. Rates effective March 8, 2024 (Decision No. 79293).[5]
  • Plans available to solar customers: Solar customers choose Time-of-Use 4pm-7pm Weekdays or Time-of-Use 4pm-7pm Weekdays with Demand Charge; the R-1 fixed-energy-charge plan is limited to customers without on-site generation.[6]
  • Grid Access Charge for solar: $0.242 per kW-dc of solar nameplate capacity added to the monthly bill on TOU-E ($0.215/kW-dc on R-3).[5]
  • Grid Access Charge litigation: On June 16, 2026 the Arizona Court of Appeals found the GAC was imposed without adequate notice; it denied APS/ACC reconsideration on Oct 29, 2026 and APS plans to petition the Arizona Supreme Court. The GAC remains in the current tariffs.[7]
  • Pending rate case: APS's 2025 rate case (filed June 13, 2025, requesting a 13.99% net base rate increase) is pending; hearing ended July 7, 2026 and APS expects a decision before the end of 2026. Rates and solar charges may change.[7]
  • Export credit payout: Unused RCP export credits roll forward; after the December bill, balances over $25 are paid by check.[4]

Permits and local programs in Flagstaff

  • Permitting: Flagstaff does not appear on the SolarAPP+ list of participating jurisdictions (checked 2026-11-05; Arizona entries: Cottonwood, Goodyear, Maricopa County, Oro Valley, Peoria, Phoenix, Pima County, Tempe, Tucson). Solar is permitted through the city's standard residential building permit application (which has a Solar checkbox).[8]
  • Solar permit deposit: The City's residential building permit application requires a $150 solar application deposit, with the remaining permit fee due at issuance.[9]
  • Local rebate: Flagstaff's FY2026-27 Home Weatherization & Energy Rebate Program offers up to $2,200 toward an electrical panel upgrade to 200-amp service needed for PV solar (income-tiered 25%/15%/5% of cost).[10]

Flagstaff solar cost by system size

SystemPrice before incentives[3]After incentiveskWh in year 1[1]Year-1 savings[2][4]Payback (years)
4 kW$12,400$11,4006,750$73014
6 kW$18,600$17,60010,130$1,10015
8 kW$24,800$23,80013,500$1,46015
10 kW$31,000$30,00016,880$1,83015
12 kW$37,200$36,20020,260$2,19015

Incentives for Flagstaff homeowners

Federal · tax creditEnding soon

Business credit for leased and PPA systems (48E)

Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027[11]

If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.

Who
Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
Deadline
December 31, 2027
Checked
November 5, 2026
State · tax creditAvailable

Arizona Residential Solar Energy Devices Tax Credit (A.R.S. 43-1083)

25% of the cost of the device, up to $1,000 (lifetime cap per residence); unused credit carries forward up to 5 years[12]

Subsection B: 'The maximum credit in a taxable year may not exceed one thousand dollars' and credits may not cumulate over different tax years beyond $1,000 for the same residence. Subsection C: carryforward 'for not more than five consecutive taxable years'. Subsection F: device and installation must meet A.R.S. title 44, ch. 11, art. 11 (warranty/installer standards). Nonrefundable (carryforward only). Claim form (ADOR Form 310) not verified because azdor.gov returned 403.

Who
An Arizona resident who is not a dependent of another taxpayer and installs a solar energy device in their Arizona residence. Credits for the same residence cannot exceed $1,000 in total across tax years.
Maximum
$1,000
Deadline
No sunset date in the statute text
Checked
November 5, 2026
State · tax exemptionAvailable

Arizona TPT (sales tax) deduction and use-tax exemption for solar energy devices

Sales of solar energy devices by a registered solar energy retailer are deducted from the state transaction privilege tax base; purchases from a registered solar retailer or contractor are exempt from use tax[13]

Use tax: A.R.S. 42-5159(E) (https://www.azleg.gov/ars/42/05159.htm): tax 'does not apply to the purchase of solar energy devices from a retailer that is registered with the department as a solar energy retailer or a solar energy contractor.' The separate prime-contracting deduction for solar installation contracts (A.R.S. 42-5075(B)(13)) applied only to taxable periods ending before January 1, 2017, so how a turnkey installation contract is taxed today was not verified. City (municipal) TPT…

Who
Applies to solar energy devices sold by a retailer registered with the Arizona Department of Revenue as a solar energy retailer. Buyers should confirm their seller/installer is registered.
Deadline
No sunset in A.R.S. 42-5061(M) or 42-5159(E)
Checked
November 5, 2026
State · tax exemptionAvailable

Arizona property tax exclusion for residential solar (A.R.S. 42-11054)

Solar energy devices and grid-tied PV systems primarily for on-site use are considered to add no value to the property for property tax assessment[14]

Subsection C(2). percent=100 means 100% of the system's added value is excluded from assessed value. For personal-property solar (C(3)), A.R.S. 42-13056 values it at depreciated original cost with assessor percentages of 3% in years 1-3 rising to 100% in year 10 (https://www.azleg.gov/ars/42/13056.htm).

Who
Owner-installed solar energy devices and grid-tied PV systems designed primarily for on-site consumption. Systems characterized as personal property (e.g., third-party-owned) are valued under A.R.S. 42-13056 instead.
Deadline
No sunset in statute text
Checked
November 5, 2026
Local · rebateAvailable

City of Flagstaff Home Weatherization & Energy Rebate Program - Electric Service Upgrade

Electrical panel upgrade rebate up to $2,200 (25%, 15% or 5% of cost depending on household income level) when an upgrade to 200-amp service is needed to support PV solar or an electric appliance[10]

Table 2 lists 'Electrical Panel Up to $2,200'. Appliance/Electrical rebate is 25% (Level 1), 15% (Level 2) or 5% (Level 3) of total cost; percent field shows the maximum tier. This is not a rebate for the solar panels themselves.

Who
City of Flagstaff residents in existing homes whose service is below 200 amps and who upgrade to support an eligible electric appliance or PV solar installation; work by a licensed contractor with an electrical permit. Rebate percentage depends on household size and income (Level 1/2/3).
Maximum
$2,200
Deadline
June 30, 2027
Checked
November 5, 2026

Every Arizona incentive →

FAQ

Frequently asked questions

How much do solar panels cost in Flagstaff?

About $22,900 est.[1,2,3] before incentives for a 7.4 kW est.[1,2] system, using Arizona's median installed price of $3.10 per watt est.[3]. Get at least three written quotes; prices for the same system often differ by thousands of dollars.

How does APS pay for solar I send to the grid?

Under Rate Rider RCP (Resource Comparison Proxy export rate), APS credits exports at 5.55¢ per kWh[4], well below the retail price, so using your solar power at home is worth more than exporting it.

How long is the payback for solar in Flagstaff?

Our model estimates about 15 years est.[1,2,3,4] for a cash purchase, with year-one savings of about $1,350 est.[1,2,4]. Financing, a battery or a different rate plan changes this; the calculator lets you test each.

sources

[ 14 ]

Every number on this page links to one of these sources. Dates show when we last checked each one.

  1. NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)pvwatts.nlr.gov · checked Nov 5, 2026
  2. EIA Electric Sales, Revenue, and Average Price 2024, Table 6: Utility bundled retail sales, residentialeia.gov · checked Nov 5, 2026
  3. U.S. Distributed Solar and Storage 2026 Data Update (Barbose, Darghouth, O'Shaughnessy, Forrester), Berkeley Labeta-publications.lbl.gov · checked Nov 5, 2026
  4. APS: Rate Rider RCP (Resource Comparison Proxy export rate)aps.com · checked Nov 5, 2026
  5. APS residential tariffaps.com · checked Nov 5, 2026
  6. APS: Plans available to solar customersaps.com · checked Nov 5, 2026
  7. APS: Grid Access Charge litigationsec.gov · checked Nov 5, 2026
  8. Flagstaff: Permittinggosolarapp.org · checked Nov 5, 2026
  9. Flagstaff: Solar permit depositflagstaff.az.gov · checked Nov 5, 2026
  10. Flagstaff: Local rebateflagstaff.az.gov · checked Nov 5, 2026
  11. Public Law 119-21 - Sec. 70513(a) and (g)(5) (48E); Sec. 70512(a) and (l)(4) (45Y)govinfo.gov · checked Nov 5, 2026
  12. A.R.S. 43-1083 - Credit for solar energy devicesazleg.gov · checked Nov 5, 2026
  13. A.R.S. 42-5061(M) - Retail classification deductionsazleg.gov · checked Nov 5, 2026
  14. A.R.S. 42-11054 - Standard appraisal methods and techniquesazleg.gov · checked Nov 5, 2026

City data last re-checked November 5, 2026.