Arizona is one of the sunniest states and has huge potential for its solar market. While Arizona solar industry has tremendous growth opportunity, due to public debates about the benefits of solar, imposition of a net metering charge in 2014 and elimination of incentives, the market has been turbulent. SEIA is working with local stakeholders and policy makers to encourage stability and transparency into policies, so that the market can recover from this market disturbance and continue to grow.
Facts on the Arizona Solar Industry
• Solar Installed: 3,254.2 MW (656.4 MW in 2016)1
• National Ranking: 3rd (7th in 2016)
• State Homes Powered by Solar: 484,000
• Percentage of State’s Electricity from Solar: 5.43%2
• Solar Jobs and Ranking: 7,310 (7th in 2016)3
• Solar Companies in State: 428 companies total; 73 Manufacturers, 220 Installers/Developers, 127 Others4
• Total Solar Investment in State: $10 billion ($1,109.78 million in 2016)
• Price Declines: 55% over last 5 years
• Growth Projections and Ranking: 3,237 MW over next 5 years (ranks 5th)
Get more solar industry data.
SEIA Arizona State Policy Priorities
- Work with stakeholders to encourage stability and transparency into solar policies.
- Support expansion of any RPS Program.
Arizona Net Metering
In 2014, Aafter months of workshops, regulatory filings and a media battle, on November 14, the Arizona Corporation Commission (ACC) approved a $0.70/kW monthly charge for new residential solar customer (a $3.50 monthly charge for a 5 kW system).
The ACC has held a workshop process to further investigate the true costs and benefits of solar. Throughout this process and discussion, it has become evident that Arizonans care deeply about their right to generate their own power from the sun. In 2016, Arizona have replaced net metering with “net billing”, allowing self-consumption and crediting all exported energy at a new credit rate (which can not decrease more than 10% annually). Each new customer will have access to the rate they signed up at for 10 years.
Notable Solar Installations in Arizona
- Solana was completed in 2013. This photovoltaic project has the capacity to generate 280 MW of electricity -- enough to power over 41,652 Arizona homes.5
- Several large retailers in Arizona have gone solar including Albertsons, Body Sculpting Center and Bookmans Recreational Exchange. Macy's has installed one of the largest such installations with 3 MW of solar capacity at their location in GOODYEAR.6
- At 100 MW, Mesquite Solar 2 in Tonopah is among the largest solar installations in Arizona. Completed in 2015 by Mesquite Solar 2, LLC, this photovoltaic project has enough electric capacity to power more than 14,995 homes.7
See our solar installations maps.
Solar Companies in Arizona
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Arizona State Solar Policy Resources
Arizona Corporation Commission – Learn about the governing body that regulates the electricity rates and services of Arizona public utilities
Arizona State Legislature – Track pending legislation affecting solar energy, locate and contact individual legislators, and stay up to date on current legislative issues in Arizona
Arizona Governor's Office of Energy Policy – Find a wide variety of information on state government energy programs, policy, projects, energy-saving strategies and energy-related statistics
Arizona State University - Solar Power Lab – Read about the innovative solar technology research taking place at Arizona State University
Arizona Goes Solar – Learn about residential and commercial solar energy options and related regulations through a collaborative effort led by the Arizona Corporation Commission and implemented by the regulated electric utilities in Arizona
DSIRE Incentives Database - Arizona – Search a public clearinghouse for specific solar energy incentives in Arizona and across the United States
U.S. Energy Information Administration - Arizona State Profile – Explore official energy statistics, including data on electricity supply and demand, from the U.S. government
EnergySage Solar Data Explorer – Arizona – Review the costs and benefits of installing solar panels in Arizona, based on real price data from solar quotes.
- All data from SEIA/GTM Research U.S. Solar Market Insight unless otherwise noted: http://www.seia.org/research-resources/us-solar-market-insight
- Energy Information Administration, Electric Power Monthly: http://www.eia.gov/electricity/monthly/#generation
- The Solar Foundation, State Solar Jobs Census: http://www.thesolarfoundation.org/solar-jobs-census/states/
- SEIA, National Solar Database: http://www.seia.org/research-resources/national-solar-database
- SEIA, Major Solar Projects List: http://www.seia.org/research-resources/major-solar-projects-list
- SEIA, Solar Means Business: http://www.seia.org/campaign/solar-means-business-2016