Is going solar in Payson still a good investment in 2026? With strong sun year-round, homes below the Mogollon Rim have a great natural resource for generating electricity. However, the financial benefits now depend almost entirely on Arizona's state incentives and the specific rules set by your utility, Arizona Public Service (APS). The value comes from carefully designing a system that offsets your energy costs effectively under today's regulations.
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Estimated Solar Panel Costs in Payson for 2026
The total cost of a solar installation is a primary factor in its long-term value. These 2026 estimates for a typical Payson home are shown before the Arizona state tax credit is applied.
- The gross cost for a 7.9 kW solar-only system is modeled at $17,775.
- For a solar and battery system, the estimated gross cost is $32,775.
After applying Arizona's $1,000 state tax credit, the net costs are estimated to be $16,775 for the solar-only option and $31,775 for the combined system. Investing in an owned solar system not only reduces your monthly bills but can also be a desirable feature for future homebuyers, potentially adding to your home's resale appeal.
Incentives & Tax Credits
Key Arizona Solar Incentives in 2026
Even without the once-standard federal tax credit for homeowners, Arizona provides a solid foundation of state-level incentives that make solar a practical investment.
- State Tax Credit: Arizona offers a personal tax credit for 25% of the cost of a solar system, up to a lifetime maximum of $1,000.
- Property Tax Exemption: Installing a solar energy system will not increase your property's assessed value for tax purposes. You get the home improvement benefit without the associated tax hike.
- Sales Tax Exemption: The state's sales tax does not apply to the purchase of major solar equipment, which helps lower the upfront installation cost.
These incentives are designed to encourage energy independence and help homeowners control their long-term electricity expenses, which is especially valuable if grid electricity from APS becomes more expensive over time.
Net Metering: Arizona Public Service Co
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How APS Export Rates Affect Solar Savings
For new solar customers, Arizona Public Service (APS) uses an export credit system often called the Resource Comparison Proxy (RCP). In simple terms, when your panels produce more electricity than you need, the surplus is sent to the grid. APS provides a credit for that power, but the rate is much lower than the retail price you pay to buy electricity.
For example, you might pay APS around 15.6¢ per kWh for power, but only receive a credit of about 6.2¢ per kWh for the power you export. This difference makes it far more valuable to use your own solar power directly—a concept called self-consumption. A battery helps you achieve this by storing your valuable solar energy instead of exporting it for a reduced credit.
Projected Savings
How Much Can You Save with Solar in Payson?
Savings from a rooftop solar system come from generating your own power instead of buying it from APS. The amount you save depends on your system's design, especially whether it includes a battery to store energy for later use.
- A 7.9 kW solar-only system is modeled to save a Payson homeowner approximately $1,298 in the first year. The estimated payback period for this system is around 11.8 years.
- Adding a 10 kWh battery to the system increases the first-year savings to $1,695. While the payback period extends to a modeled 14.3 years due to the battery's cost, the system delivers superior long-term value and greater energy independence.
The battery is a key part of maximizing savings because it allows you to store the solar energy you produce during the day and use it during peak evening hours. This strategy helps you avoid selling your excess power back to APS for a low credit.