Solar Panels Cost $3.7k-$11k in Tucson, AZ | August, 2025

The City of Tucson requires several permits for solar farms. This table shows all of the relevant information about the applicable regulations that apply to anyone looking to establish a large solar facility. For example, permits are required for groundwater/surface water management, review for the site/development plan, preconstruction, and the electrical permit. Permits last one day or 14 months, depending on the specific permit, so pay attention to the dates on each permit and mark them on a calendar to avoid confusion. It should be noted that some permits may not be needed, so check with the appropriate agency before paying for a permit.

The SunWatts program offers home and business owners incentives for purchasing solar water heating systems. The ideal is that residential and business customers of various companies will take advantage of the incentives offered through the SunWatts program and upgrade their homes. Also, the solar water heating systems may encourage the homeowners and business owners to try other renewable energy systems, especially once they see how much the heating systems save them. Systems must meet all program requirements, and incentives are usually available through local companies. See the SunWatts program website for complete details on rebates offered and other incentives.

A 2014 act of the Arizona legislature created tax incentives on new solar, wind, or other renewable energy systems used to power "international operations centers." To qualify for the credit, systems should be rated for at least 20 MW of generation capacity or produce 40,000 megawatt hours of electricity per year. "International operations center" certification is obtained through ten years of investment records in new Arizona-located capital. Additional information is available from the state department of revenue.

The Arizona Registrar of Contractors does not offer a general solar electric contractor license, but the state's R-11 and C-11 electric licenses cover solar electric installations. The Registrar also has licenses for solar water heaters. There are also licenses for space heating and cooling systems, including solar thermal systems. For those interested in working with pools that include a solar pool heating system, there is another license. All contractors that work with solar energy systems must have four years of applicable work experience and pass an exam in order to obtain a license in Arizona.

The Trico Electric Cooperative offers its residential and business customers a rebate for installing solar water heaters into their homes and businesses, thus helping to encourage the use of sustainable energy in those homes and businesses. Rebates equal $.40 per kilowatt that is expected to be saved in the first year of the use of solar water heating systems, as compared to the systems that they are used to using to heat their water. The rebates are offered through the SunWatts program, and should encourage its residential and business customers to look for another way to use renewable energy sources in their homes and businesses.

The Arizona Corporation Commission is debating changes to the state's Renewable Energy Standard to expand the standard to 15% by 2025, with 30% of the renewable energy coming from distributed energy technologies. The new rules were certified as constitutional and were allowed to go forward. Prior to the 2006 rules, Arizona's original Environmental Portfolio Standard required Arizona 0.4% of its energy from renewable sources; this was increased incrementally to 60% by 2012. The RES should allow Arizona to meet its goals, and to eventually see more of its energy needs being met by renewable energy sources.

The Salt River Project modified its net-metering program for residential customers in February 2015. Effective with the April 2015 billing cycle, residential customers who generate part of the electricity onsite are billed under the Customer Generation Price Plan. Customers that have purchased their distributed energy system or signed a lease agreement before December 8, 2014, may keep their original plan for twenty years. Net-metering allows customers discounts on the energy bill if they produce more electricity than they use. While the Arizona Corporation Commission adopted net-metering rules in October 2008, the state's rules do not apply to Salt River Project customers.

The Arizona Corporation Commission initiated a rule-making process to establish statewide interconnection standards for distributed generation. The proceedings are still in effect, and the commission has recommended that the utilities use the Interconnection Document as a guide. The state's utilities developed interconnection agreements prior to the ACC's ongoing proceedings. Each utility has adopted its own standards, sometimes based on different metrics than other utilities. It is likely that Arizona's regulated utilities will adopt the ACC's interconnection standards when the final rules are adopted in order to provide a system that will enable all utilities to provide consistent service across the state.

S.B. 1484 of 2014 provides a tax credit for renewable energy systems used in manufacturing that produce energy. H.B. 2528 of 2017 removes manufacturer eligibility in 2018. Eligible systems must be capable of creating at least 20 megawatts of energy or a typical annual generation of at least 40,000 megawatt-hours. The tax credit of $5 million per year for five years for each facility. Taxpayers must apply to the Department of Revenue; the sooner you apply the better as when the $10 million is gone it is gone.

In June 2008, Tuscon adopted an ordinance that requires all new single single-family homes and duplexes to be solar-ready. The ordinance was developed by a stakeholder group. New homes must either have a photovoltaic or solar water heating system installed or have the necessary hardware on hand so that such a system can be installed at a later date. This latter option allows a home to have some of the piping installed so that later installation is not that expensive. These requirements may be waived if it can be sufficiently demonstrated to a building official that compliance is not practical due to shading, building orientation, construction constraints, or the configuration of the parcel of land.