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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 in Arizona for 2026
- Federal home energy tax credits (25C and 25D) ended after 2025: The 25C Energy Efficient Home Improvement Credit does not apply to property placed in service after December 31, 2025, and the 25D Residential Clean Energy Credit (solar, batteries, geothermal) does not apply to expenditures made after December 31, 2025 (IRS). Work completed in 2025 or earlier can still be claimed on IRS Form 5695.
- HOMES & HEAR Rebates: Arizona has launched the HEAR rebate program but not HOMES, according to the National Association of State Energy Officials (NASEO) tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. HEAR can provide up to $14,000 per income-qualified household; see our HEAR and HOMES guides.
- 30C EV Charger Credit (ended): Does not apply to chargers placed in service after June 30, 2026.
- Weatherization Assistance Program (WAP): Free weatherization services for low-income households, generally 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 launched the HEAR rebate program but not HOMES, according to the National Association of State Energy Officials (NASEO) tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. 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 launched the HEAR rebate program but not HOMES, according to the National Association of State Energy Officials (NASEO) tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. 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?
With the federal 25C and 25D tax credits ended after 2025, Arizona residents should look to state, utility and HOMES/HEAR programs. State-level programs include Weatherization Assistance Program.
Has Arizona launched the HOMES and HEAR rebate programs?
Arizona has launched the HEAR rebate program but not HOMES, according to the National Association of State Energy Officials (NASEO) tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. 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. If you completed qualifying work in 2025 or earlier, claim the 25C or 25D credit on IRS Form 5695 for that tax year (both ended for 2026 work). For state programs, contact the Arizona Energy Office (within the Governor's Office). For utility rebates, check with your local utility provider directly.
Explore Nearby States
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