State Overview

Arizona

National Solar Capacity Ranking: 5th

Data Current Through: Q3 2024

 

Arizona State Solar Overview

Arizona is one of the sunniest states and has huge potential for its solar market. While the state solar industry has tremendous growth opportunity, due to public debates about the benefits of solar, elimination of incentives, and declining compensation for distributed solar resources the market has been turbulent. SEIA is working with local stakeholders and policymakers to encourage stability and transparency so that the market can continue to grow.

Arizona Policy Priorities:

  • SEIA works collaboratively with AriSEIA to leverage resources and contract with a lobbyist to engage at the legislature, focusing on reducing market barriers across industry sectors.
  • At the Arizona Corporation Commission, SEIA advocates for policies and programs that accurately reflect the benefits of solar and storage resources, including piloting Virtual Power Plant programs, opposing discriminatory fees for solar customers, and competitive resource procurement.

Official SEIA State Affiliate

ariSEIA

 

Just The Facts

  • Solar Installed (MW):

    9,533

  • National Ranking:

    5th (5th in 2023)

  • Enough Solar Installed to Power:

    1,429,838 homes

  • Percentage of State's Electricity from Solar:

    12.67%

  • Solar Jobs:

    9,726

  • Solar Companies in State:

    379 (80 Manufacturers, 171 Installers/Developers, 128 Others)

  • Total Solar Investment in State:

    $21.3 billion

  • Prices have fallen:

    37% over the last 10 years

  • Growth Projection and Ranking:

    12610 MW over the next 5 years (ranks 4th)

  • Number of Installations:

    305,995

Download Factsheet img

Arizona State Solar Policy Resources

Arizona law contains detailed consumer protection provisions, including regulations on door-to-door sales, advertising requirements, prohibition of deceptive practices, and a construction recovery fund.

Specific to the solar industry, ARS 44-76 details contract requirements and disclosures for distributed generation. Companies who lease or sell solar systems to consumers in Arizona must provide a certificate that the system complies with Arizona law and must receive specific acknowledgment from customers on contract terms, including warranty information, cost, payment schedule, utility rates, and others.

Arizona Energy Storage Policy and Market Overview

The four corner states expect to experience the strongest energy storage growth by the end of the decade, and Arizona is leading the pack. In Q2 2024, Arizona outpaced Texas by adding 2,600 MWh of grid-scale energy storage. A streamlined interconnection process and financial incentives are reducing market burdens and supporting swift system deployment.

Most significantly, Arizona regulators eased the interconnection process for distributed generation and energy storage systems. A tiered fast tracking approval process based on system size allows for a thorough, systematic, and swift process. Arizona electric utilities are taking advantage of favorable regulations and have procured over 900 MW of battery storage. Another 2,000 MW is expected to be in service by 2025.

Statewide tax incentives and exemptions are easing entrance into both the renewable energy and battery storage marketplace. Simultaneously, the state is quickly becoming a hub of battery manufacturing. Multiple billion-dollar facilities are in construction and supporting thousands of jobs. In developing a circular battery economy, a formidable and competitive energy storage market is emerging in Arizona.

 

Arizona Energy Storage Policy Resources