The Solar Industry Continues To Boom in Arizona, and Saguaro Solar Is Growing

As the solar industry expands across the United States, Saguaro Solar is proud to be part of it here in Arizona. Our team has a combined track record of helping thousands of households move to clean energy, and with demand continuing to climb we are expanding our operations to keep up.

Here is a look at why Arizona keeps drawing solar investment, and what that means if you are considering it for your own home or business.

Why Arizona is a natural solar market

Arizona receives more usable sunlight than almost anywhere else in the country. Much of the state sees over 300 sunny days a year, and average daily solar irradiance here is meaningfully higher than in most of the eastern and central United States. The same array produces more here than it would in most other markets.

The state also has a long history with the technology, going back to early solar thermal work in Yuma and Phoenix. Today Arizona hosts some of the largest solar facilities in the country, including the Solana Generating Station near Gila Bend, a major concentrating solar plant, and the Agua Caliente project near Yuma, one of the larger photovoltaic installations built in the U.S.

Combine that resource with abundant open land and high summer cooling demand, and it is easy to see why Arizona consistently ranks near the top nationally for installed solar capacity.

The environmental case

Solar generates electricity without emissions at the point of production, which improves local air quality alongside the carbon benefit. It also diversifies the state’s energy mix.

The water angle matters more here than most people realize. Conventional thermal power generation consumes significant fresh water for cooling, while solar requires essentially none once installed. In a state managing long-term water scarcity, that is not a small consideration. We wrote about it in more detail in Is Renewable Energy the Answer for Water Conservation?

The economic case

Solar has saved Arizona consumers money on their electric bills and helps hedge against rising fossil fuel prices. Panel costs have fallen dramatically over the past decade, and modern systems have low maintenance costs and long service lives, which is what makes them a sound long-term investment rather than a novelty.

The industry has also become a real source of skilled local employment across installation, sales, and maintenance, and Arizona is home to a large number of solar companies as a result.

Arizona policy and incentives

Arizona enacted a Renewable Portfolio Standard in 2006 requiring regulated utilities to source 15% of their electricity from renewable sources by 2025, and solar has carried much of that.

For homeowners, the incentives that currently apply are:

• The Arizona Residential Solar Energy Credit, worth 25% of system cost up to $1,000.
• The solar equipment sales tax exemption, which removes state sales tax on the equipment.
• The energy equipment property tax exemption, so adding solar does not raise your property tax assessment.

Two clarifications worth making, because both circulate widely and both are wrong. Arizona does not operate an SREC market, unlike some eastern states, so you cannot sell renewable energy credits here. And the 30% federal residential tax credit ended for systems placed in service after December 31, 2025, so it no longer applies to a new residential installation. Commercial projects follow separate rules.

It is also worth understanding that Arizona utilities moved from one-to-one net metering to net billing, which changes how exported power is credited and therefore how a system should be sized. Our explainer on how the solar export rate works covers what that means in practice.

Why we are growing

Demand in Southern Arizona has kept climbing, and we have expanded our crews to meet it without changing how we work. Everything stays in-house. The team that designs your system installs it and supports it afterward, and we are dual licensed in solar and roofing so a roof that needs attention before an array goes on does not mean handing you to another company.

If you are weighing solar for your home or business, we are happy to give you an honest read on whether it makes sense for your roof, your usage, and your utility. Call (520) 704-6868 or request a free estimate.