Harnessing the brilliant sun over the Hualapai Mountains seems like a no-brainer for solar panels. But a major shift in policy from Arizona Public Service (APS) has changed the math for Kingman homeowners. Simply putting up panels isn't enough anymore; the key to real savings in 2026 is understanding and beating their Net Billing program.
Benchmark Cost Analysis
System Installation Cost in Kingman
You'll see two different price points when getting quotes. A basic solar-only system might look tempting at a net cost of around $7,050 after tax credits. However, due to APS's export rates, this setup won't deliver the savings you expect.
The recommended solar-plus-battery system has a gross cost of about $23,500. After all incentives, the final homeowner investment is approximately $15,450. This investment is the path to significant long-term savings and protects you from low export rates and future utility price hikes.
Incentives & Tax Credits
Current Solar Incentives for Kingman
Arizona offers some of the best solar incentives in the country, which are critical for making the investment affordable. Your $23,500 gross system cost is reduced by:
- Federal Solar Tax Credit: A 30% credit, valued at $7,050 for a typical system.
- Arizona State Tax Credit: A credit of up to $1,000.
- Property & Sales Tax Exemptions: You pay no sales tax on the equipment and your property taxes won't increase due to the added value of the system.
Net Metering: Arizona Public Service (APS)
Net Billing (2024)
Critical 🔋
Understanding APS Net Billing: Why a Battery is Essential
Under the old net metering rules, APS gave you a 1-for-1 credit for every kilowatt-hour (kWh) you sent to the grid. Now, with Net Billing, that's gone. APS only pays you a fraction of the retail rate for your exported power—roughly 6 to 8 cents per kWh. At the same time, you'll still pay the full retail rate (around 13.5 cents) to pull power from the grid after the sun goes down. A solar battery solves this by letting you store your excess daytime solar power for your own use at night, avoiding the poor export rates entirely.
Projected Savings
Unlocking Real Monthly Savings
With a solar and battery system, you store your own excess energy to use at night. This self-consumption strategy helps a typical Kingman household save around $928 annually on electricity bills. Without a battery, your annual savings would be slashed to about $658 because you'd be forced to sell your valuable solar energy back to APS for pennies and buy it back later at full price. The battery helps you achieve true energy independence and a payback period of around 16 years.