Solar Energy in Tempe, Arizona: What Homeowners Need to Know

Sunset paints the sky in vibrant hues over the Mill Avenue Bridge at Tempe Town Lake, with the cityscape in the background.

Tempe is one of the most solar-friendly cities in Arizona — and in the country. With over 300 days of sunshine per year, strong state-level HOA protections, streamlined city permitting, and two major utilities with solar buyback programs, Tempe homeowners have a lot going for them when it comes to solar.

This guide covers everything a Tempe homeowner needs to know — whether you’re thinking about installing solar for the first time, dealing with a system whose installer has closed, or trying to understand why your solar investment isn’t saving you what you expected.

Tempe’s Solar Permitting: Faster Than Almost Anywhere

One of Tempe’s biggest practical advantages for solar homeowners is its permitting process. The city uses SolarAPP+, an automated platform developed by the National Renewable Energy Laboratory (NREL) that allows eligible residential solar projects to receive same-day permit approval.

This is a significant departure from the traditional permitting process, which can take days or weeks in other Arizona cities.

SolarAPP+ Eligibility Requirements in Tempe

•       Single-family home or duplex rooftop installation

•       Standard roof-mounted systems only (no ground-mounted or ballasted systems)

•       Maximum 400-amp single-phase electrical service

•       No existing solar or storage systems on the property

•       Property not in a Historic Preservation district or FEMA flood zone

•       Must use a licensed Arizona contractor for the application

If your project doesn’t qualify for SolarAPP+, Tempe still processes standard residential solar permits — it just takes longer. Talk to your contractor about which path applies to your home.

Technical Requirements for Tempe Solar Permits

•       PV system dead load must not exceed 4 pounds per square foot

•       Maximum of 2 DC strings in parallel

•       All systems must comply with the International Green Construction Code (IgCC)

Tempe has also adopted Solar Ready provisions in its Energy Conservation Code, which means new homes built in the city are pre-plumbed and pre-wired for future solar installation — making the eventual upgrade easier and less expensive.

Your HOA Cannot Block Your Solar Installation

This is one of the most important things Tempe homeowners need to know: Arizona law strongly protects your right to install solar regardless of what your HOA says.

Arizona Revised Statute 33-1816 is one of the strongest solar access laws in the country. Under this law:

•       HOAs cannot prohibit solar panel installations

•       HOAs cannot impose restrictions that increase your system cost by more than $1,000

•       HOAs cannot impose restrictions that decrease your system’s efficiency by more than 10%

•       HOAs cannot require you to place panels only on non-street-facing roofs if that significantly reduces generation

•       Any HOA restriction that violates ARS 33-1816 is void and unenforceable

If your HOA has sent you a letter claiming you can’t install solar, or is threatening fines for your existing system, those restrictions are almost certainly unenforceable under Arizona law. You may have civil remedies available. Consult an Arizona attorney familiar with HOA law if you’re facing pushback.

Tempe’s zoning code also includes protections against tall buildings shading adjacent residential properties — a detail that matters for homeowners near mixed-use development areas in the city.

APS vs. SRP: Which Utility Serves Your Tempe Home?

Both Arizona Public Service (APS) and Salt River Project (SRP) serve areas of Tempe. Which utility you’re with significantly affects how your solar system interacts with the grid — and how much you actually save.

Finding Out Which Utility You Have

Check your electric bill. The utility company’s name will be on it. If you’re still not sure, your address determines your utility provider — the two don’t overlap within the same property.

APS Solar Customers in Tempe

APS uses a net billing program for solar customers rather than traditional net metering. Here’s the key difference: when your solar panels produce more electricity than your home needs and send the excess to the grid, APS credits you at a rate lower than the retail rate you pay when drawing from the grid.

APS also has time-of-use rate plans where electricity costs significantly more during peak hours — typically late afternoon and early evening. This is important for solar homeowners because those peak hours often coincide with when your solar production is declining and your home’s demand is highest (especially air conditioning in Arizona summers).

APS tip: Running large appliances like dishwashers, dryers, and pool pumps during off-peak hours — typically mornings and late evenings — can dramatically reduce your bill. Some Tempe homeowners have reduced their monthly utility costs by $200–$300 simply by shifting when they use high-draw appliances.

SRP Solar Customers in Tempe

SRP retired its traditional net metering plans in November 2025 and transitioned all residential solar customers to a net billing structure. Like APS, SRP’s net billing credits excess solar generation at a rate below retail.

SRP also uses time-of-use pricing. Understanding when your peak hours are — and adjusting your usage accordingly — is one of the most effective ways to maximize your solar savings under SRP’s current rate structure.

Both APS and SRP have battery storage incentive programs that can help offset the cost of adding battery backup to your system. These programs have limited enrollment and change periodically, so check with your utility directly for current availability.

Solar Incentives Available to Tempe Homeowners in 2026

The incentive landscape changed significantly at the end of 2025. Here’s an accurate picture of what’s available right now:

INCENTIVE	AMOUNT	STATUS 2026
Federal Residential ITC (25D)	30% of system cost	Expired
AZ State Tax Credit	25% up to $1,000	Active 2026
AZ Sales Tax Exemption	100% of sales tax on equipment	Active 2026
AZ Property Tax Exemption	Added home value excluded from assessment	Active 2026
APS Battery Pilot Program	Up to $3,750 (limited enrollment)	Active 2026
SRP Storage Incentives	Varies — check with SRP directly	Active 2026

Important: The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025. Homeowners who installed solar in 2025 can still claim it when filing their 2025 taxes. Systems installed in 2026 do not qualify. Be cautious of any contractor or website still advertising the federal credit as available for new installations — that information is outdated.

Arizona State Tax Credit — Still Active

Arizona’s 25% state tax credit (up to $1,000) has no expiration date and remains available to Tempe homeowners who install solar in 2026. This credit applies to your Arizona state income tax and can be carried forward for up to five years if you don’t owe enough tax to use it all in one year. File Arizona Form 310 to claim it.

Sales Tax and Property Tax Exemptions — Both Active

Solar equipment in Arizona is 100% exempt from state sales tax, which represents meaningful savings on a $20,000–$30,000 system. And while adding solar increases your home’s value, that added value is excluded from your property tax assessment — so you won’t pay higher property taxes for improving your home with solar.

If Your Solar Company Closed — What Tempe Homeowners Should Know

Tempe has seen its share of solar installers close over the past few years, leaving homeowners with systems that no longer have service or warranty support. If this happened to you, there are a few things worth knowing:

Your Equipment Warranty Survived

When a solar company closes, your labor warranty ends — but your equipment warranty doesn’t. Equipment warranties are issued by the manufacturer, not the installer. A licensed contractor can submit warranty claims on your behalf directly to the manufacturer.

This matters because a string inverter can cost $1,200–$6,000 to replace. A solar battery can run up to $8,000. With a valid warranty claim, you pay for labor only — not the cost of new equipment.

Your HOA Rights Are Still Protected

Even if your installer is gone, Arizona law still protects your right to maintain and repair your solar system. No HOA can require you to remove a permitted solar installation.

Permitting Is Your Friend

If you need to modify or repair your system, Tempe’s streamlined permitting process — including SolarAPP+ for eligible projects — makes it easier to get work done quickly and legally.

AZ Solar Rescue serves Tempe homeowners with solar repair, warranty claim assistance, system restoration, panel removal and reinstallation for roof projects, bird proofing, and panel cleaning. We are licensed to file warranty claims for SolarEdge, Enphase, Fronius, AP Systems, Tesla, Generac, Sol-Arc, EGE-4, Point Guard, and all major panel brands.  📞 480-743-1325  |  service@azsolarrescue.com  |  AZSolarRescue.com  Free assessment. No pressure.

The Bottom Line for Tempe Solar Homeowners

Tempe is genuinely one of the best places in the country to have solar. The permitting is fast, the HOA protections are strong, the sun is relentless, and the state still offers meaningful financial incentives.

The federal tax credit is gone for now, which changes the upfront math — but it doesn’t change the 25-year economics of solar in a city that averages over 300 sunny days per year and where electricity rates continue to rise. The Arizona state tax credit, sales tax exemption, property tax exemption, and utility battery incentives are all still available and still meaningful.

If you’re thinking about solar, the best first step is an honest conversation with a licensed contractor who will give you real numbers for your specific home, roof, and utility situation — not a sales pitch.

A Note on Accuracy

This post reflects our best understanding of Tempe solar regulations, utility programs, and tax incentives as of April 2026. Utility programs, incentive amounts, and city requirements change. Always verify current information with the City of Tempe, your utility provider, and a qualified tax professional before making installation decisions.

About the Author

This post was written by the team at AZ Solar Rescue, a licensed solar repair, warranty claim, and installation specialist serving Tempe and greater Arizona since 2002. ROC# 298079. KB-2 General Contractor | CR-11 Master Electrical.