State Overview

Arizona

National Solar Capacity Ranking: 5th

Data Current Through: Q2 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

  • State

    Arizona

  • Solar Installed (MW):

    8,934

  • State Ranking, Cumulative Capacity Installed:

    5th

  • State Ranking, Capacity Installed in 2023:

    5th

  • Enough Solar Installed to Power:

    1,347,478 homes

  • Percentage of State's Electricity from Solar:

    11.15%

  • Solar Jobs:

    9,726

  • Solar Companies in State:

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

  • Total Solar Investment in State:

    $20.4 billion

  • Prices have fallen:

    43% over the last 10 years

  • Growth Projection and Ranking:

    11159 MW over the next 5 years (ranks 5th)

  • Number of Installations:

    301,119

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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.