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Energy Rebates in Arizona
Arizona residents can access a range of federal energy tax credits, state-specific incentive programs, and local utility rebates to help offset the cost of energy-efficient home improvements. This page covers the key programs available in Arizona, including heat pump rebates, solar incentives, EV charger credits, weatherization assistance, and more. Each program listed below includes eligibility details and links to official sources.
Federal Programs Available in Arizona
- 25C Energy Efficient Home Improvement Credit: Up to $3,200/year for heat pumps, insulation, windows, doors, electrical panels, and home energy audits. Covers 30% of costs.
- 25D Residential Clean Energy Credit: 30% tax credit for solar panels and battery storage with no dollar cap. Available through 2032.
- HOMES & HEAR Rebates: Income-qualified point-of-sale rebates up to $14,000 for heat pumps, water heaters, electrical panels, and other electrification upgrades.
- 30C EV Charger Credit: Up to $1,000 for home EV charging equipment in eligible census tracts.
- Weatherization Assistance Program (WAP): Free weatherization services for low-income households at or below 200% of the federal poverty level.
Arizona Energy Rebate Overview
Arizona households have access to a combination of federal, state, and local utility incentives designed to make energy-efficient home upgrades more affordable. Arizona has not yet launched the HOMES and HEAR rebate programs under the Inflation Reduction Act, but federal tax credits are available now to all homeowners regardless of state program status. The Arizona Energy Office (within the Governor's Office) coordinates state-level energy programs and can provide the latest information on available incentives.
HOMES & HEAR Program Status in Arizona
Arizona has not yet launched its HOMES or HEAR rebate programs. The Arizona Department of Housing is the designated administering entity and is working with the U.S. Department of Energy on program design and implementation.
Income Eligibility for Arizona Rebates
For Arizona, 80% of Area Median Income varies by county. In Maricopa County (Phoenix metro), 80% AMI for a family of four is approximately $62,100.
For Arizona, 150% of Area Median Income in Maricopa County for a family of four is approximately $116,400.
Arizona State Tax Credits
Arizona Residential Solar and Wind Energy Systems Tax Credit
Amount: 25% of the cost of the system, up to $1,000
Eligible items: Solar electric (PV), solar thermal/hot water, and wind energy systems for residential use
This is a personal income tax credit. The credit was historically higher but has been capped at $1,000. Unused credit can be carried forward for up to five years.
Arizona State Rebate Programs
Weatherization Assistance Program
Administered by: Arizona Department of Housing
Amount: Average expenditure of approximately $7,000-$8,000 per home
Eligible items: Insulation, air sealing, duct repair, HVAC tune-ups, refrigerant charge correction, window shading
Federally funded program for income-qualifying households. Arizona's program emphasizes cooling load reduction given the hot climate.
Solar Net Metering in Arizona
Arizona replaced traditional net metering with net billing (also called net export rate) for new solar customers as of 2017. Under the Arizona Corporation Commission decision, new solar customers receive a lower export rate for excess energy sent to the grid, which decreases over time. Grandfathered net metering customers retain their original rate structure for a set period.
Utility Rebate Programs in Arizona
Arizona residents may qualify for additional rebates from their local utility company. Here are programs from major utilities serving the state:
Arizona Public Service (APS)
Home Performance with ENERGY STAR
Amount: Up to $2,500 in rebates for comprehensive improvements
Eligible items: Insulation, air sealing, duct sealing, HVAC upgrades, windows
Cool Savings Rebate Program
Amount: Up to $500 for qualifying AC/heat pump systems
Eligible items: High-efficiency air conditioners and heat pumps meeting minimum SEER2 requirements
Shade Tree and Shade Screen Programs
Amount: Free shade trees (up to 2) or discounted shade screens
Eligible items: Shade trees for eligible homes, exterior shade screens
Salt River Project (SRP)
Rebates for Cool AC
Amount: Up to $500 for qualifying systems
Eligible items: High-efficiency air conditioners and heat pumps, quality installation verification
Heat Pump Water Heater Rebate
Amount: Up to $600
Eligible items: ENERGY STAR certified heat pump water heaters
Shade Tree Program
Amount: Free shade trees (up to 2)
Eligible items: Desert-adapted shade trees to reduce cooling costs
Tucson Electric Power (TEP)
Residential Energy Efficiency Rebates
Amount: Varies; up to $400 for HVAC, up to $250 for insulation
Eligible items: High-efficiency air conditioners, heat pumps, insulation, duct sealing, shade screens
Get Personalized Arizona Rebate Guidance
Enter your ZIP code below to chat with our AI about rebates specific to your area in Arizona. The AI will check federal, state, and utility programs and give you a personalized breakdown of what you may qualify for and how to apply.
Frequently Asked Questions About Arizona Rebates
What energy rebates are available in Arizona?
Arizona residents can access federal tax credits including the 25C Energy Efficient Home Improvement Credit (up to $3,200/year) and the 25D Residential Clean Energy Credit (30% for solar and battery storage). State-level programs include Weatherization Assistance Program.
Has Arizona launched the HOMES and HEAR rebate programs?
Arizona has not yet launched its HOMES or HEAR rebate programs. The Arizona Department of Housing is the designated administering entity and is working with the U.S. Department of Energy on program design and implementation.
What are the income limits for energy rebates in Arizona?
For Arizona, 80% of Area Median Income varies by county. In Maricopa County (Phoenix metro), 80% AMI for a family of four is approximately $62,100. For Arizona, 150% of Area Median Income in Maricopa County for a family of four is approximately $116,400.
Does Arizona have net metering for solar panels?
Arizona replaced traditional net metering with net billing (also called net export rate) for new solar customers as of 2017. Under the Arizona Corporation Commission decision, new solar customers receive a lower export rate for excess energy sent to the grid, which decreases over time. Grandfathered net metering customers retain their original rate structure for a set period.
How do I apply for energy rebates in Arizona?
Start by entering your ZIP code on Rebate Atlas to get personalized guidance. For federal tax credits (25C and 25D), you claim them when you file your federal income tax return using IRS Form 5695. For state programs, contact the Arizona Energy Office (within the Governor's Office). For utility rebates, check with your local utility provider directly.
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