For homeowners in El Mirage, the intense Arizona sun makes solar energy a natural fit, especially when trying to offset high summer air conditioning bills from Arizona Public Service (APS). But in 2026, the financial equation for solar has changed. With the main federal tax credit no longer available for new systems, understanding local costs and Arizona-specific incentives is more important than ever. The key to maximizing savings now lies in how you use the power you generate, not just how much you produce.
Get a quick estimate tied to local rates and sun hours.
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2026 Solar System Costs in El Mirage
The cost for a professionally installed rooftop solar system is based on its size, typically measured in kilowatts (kW). For an average home in the area, a system designed to offset most of the electricity bill is a common starting point. Here are the estimated costs for a typical 8.3 kW system in El Mirage.
- Solar Panels Only: The estimated gross cost is $18,675. After applying Arizona's state tax credit, the net cost comes down to approximately $17,675.
- Solar Panels + 10 kWh Battery: Adding a battery for energy storage increases the total gross cost to $33,675. The same state incentive applies, bringing the estimated net cost to $32,675.
These figures are based on a typical cost of $2.25 per watt. An owned solar system can also be a significant long-term feature, potentially supporting your home's resale appeal.
Incentives & Tax Credits
Arizona's Solar Incentives for 2026
While the 30% federal solar tax credit is no longer available for systems placed in service in 2026, Arizona homeowners still have access to valuable state-level benefits that reduce the overall cost and improve the payback period.
- Arizona Solar Tax Credit: You can claim a state tax credit for 25% of the system's cost, capped at a lifetime maximum of $1,000. This is a direct reduction of your state tax liability.
- Sales Tax Exemption: Solar energy equipment is exempt from Arizona's state sales tax, which saves you hundreds of dollars on the initial purchase.
- Property Tax Exemption: Adding a solar system will not increase your property taxes. The value added to your home by the panels is exempt from property tax assessments, ensuring your savings aren't offset by higher tax bills.
Net Metering: Arizona Public Service Co
APS Reduced Compensation
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Understanding Export Rates with APS
The way Arizona Public Service (APS) compensates for exported solar energy is a critical factor in your savings. Under the current structure, you don't receive the full retail rate for excess power you send to the grid. Instead, you get a much lower credit, modeled here at around 6.2¢ per kWh.
This is significantly less than the 15.6¢ per kWh you pay to buy electricity from APS. This difference is why a battery is now strongly recommended. By storing your excess solar power in a battery, you can use it during the evening instead of selling it to the grid for a low price and buying it back later for a high price. A battery helps you keep the full value of every kilowatt-hour your panels produce.
Projected Savings
Modeled Monthly & Annual Savings
Installing solar is about replacing a volatile utility bill with a fixed asset. In El Mirage, the value of that replacement depends heavily on whether you add a battery. Because APS now pays a lower rate for excess power sent to the grid, using that energy yourself is more valuable.
- A solar-only system is modeled to save around $1,443 annually, with an estimated payback period of 11.3 years.
- A solar + battery system significantly increases self-consumption, boosting modeled annual savings to $1,910. While the initial investment is higher, leading to a 13.4-year payback, the system delivers greater long-term bill control and provides backup power during outages.
If grid electricity from APS becomes more expensive over time, the value of the energy your system produces will also increase, potentially improving your return on investment.