Arizona Energy Rebates & Tax Credits

15 state-level programs plus 15 federal programs available to Arizona residents.

Key Takeaways

Arizona offers 15 energy rebate and tax credit programs, close to the national average of 12 (rank #7 of 51).
At 13.64¢/kWh (rank #29), electricity is 2.3¢ cheaper than the national average of 15.9¢/kWh. Lower rates mean longer payback periods for solar, but rebates can still make it worthwhile.
Arizona was allocated $143M in IRA (Inflation Reduction Act) funding — below the state average of $194M. Programs cover HOMES rebates ($72M) and HEEHR electrification ($71M).
IRA HOMES rebate status: Launched (launch: 2025-06). HEEHR status: Launched (launch: 2025-09).

State Programs

Tax Credits

Rebates

Utility Programs

Arizona Electricity Rates

13.64 ¢/kWh

Residential

10.91 ¢/kWh

Commercial

7.50 ¢/kWh

Industrial

National rank: #29 | Compare all states

IRA Rebate Status in Arizona

HOMES Program

Status: Launched

Launch: 2025-06

Funding: $72M

Accepting applications statewide

HEEHR Program

Status: Launched

Launch: 2025-09

Funding: $71M

Income-qualified households

Administered by: AZ Dept of Housing | Total IRA allocation: $143M

View all states →

Electric Vehicles(2 programs)

Arizona EV Charging Infrastructure Grant

$7,119Grant

Arizona EV Rebate

$6,593Rebate

HVAC / Heat Pumps(4 programs)

Arizona Public Service (APS) Smart Thermostat Rebate

$50-$100Rebate

Salt River Project (SRP) Smart Thermostat Rebate

$50-$100Rebate

Tucson Electric Power Heat Pump Rebate

$500-$3,000Rebate

Tucson Electric Power Smart Thermostat Rebate

$50-$100Rebate

Solar(5 programs)

Arizona Net Metering

VariesPolicy

Arizona Renewable Energy Property Tax Exemption

VariesTax Exemption

Arizona Solar Rebate Program

$4,829Rebate

Salt River Project (SRP) Solar Panel Rebate

$500-$2,500Rebate

Tucson Electric Power Solar Panel Rebate

$500-$2,500Rebate

Water Heating(2 programs)

Arizona Water Heater Rebate

$1,096Rebate

Salt River Project (SRP) Heat Pump Water Heater Rebate

$300-$750Rebate

Weatherization(2 programs)

Arizona Public Service (APS) Home Energy Audit Rebate

$100-$200Rebate

Salt River Project (SRP) Home Energy Audit Rebate

$100-$200Rebate

Federal Programs Available in Arizona

All 15 federal programs apply to Arizona residents and stack with state incentives.

Battery Storage Tax Credit30%ENERGY STAR Appliance Tax Credit30% up to $1,200 EV Charger Installation Credit (EVSE)30% up to $1,000 EV Tax Credit (New Clean Vehicle)Up to $7,500 Electric Panel Upgrade Credit30% up to $600 Energy-Efficient Commercial Building Deduction (179D)Up to $5.00/sq ft Energy-Efficient New Homes Credit (45L)Up to $5,000 Geothermal Heat Pump Tax Credit30%

View all federal programs →

Frequently Asked Questions

How many energy rebate programs are available in Arizona?

Arizona currently has 15 state-level energy incentive programs, plus all 15 federal programs that apply nationwide. These include tax credits, rebates, utility incentives, and financing programs.

Can Arizona residents claim federal energy tax credits?

Yes. All Arizona residents can claim federal energy tax credits including the 30% solar credit, up to $2,000 heat pump credit, and up to $7,500 EV credit, in addition to any Arizona-specific programs.

What are the IRA rebate programs in Arizona?

The IRA established two rebate programs: HOMES (for whole-home energy savings) and HEEHR (for electrification like heat pumps and appliances). Each state administers these programs independently. Check our Arizona state page for current launch status and funding details.

How do I apply for Arizona energy rebates?

Application processes vary by program. State tax credits are claimed on your state tax return. Utility rebates typically require submitting a form to your utility company. IRA rebates are applied at the point of sale through participating contractors.

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