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Arizona: solar, wind, and storage projects and rules

EIA data: August 2026 file · Rules checked October 7, 2026

Arizona has no state permit for solar, wind, or battery plants, so counties, the State Land Department, and each utility's own interconnection process do most of the deciding. Here is what is planned in each county and the rules for landowners, businesses, and homeowners.

Jump to: Projects by county · State permits · Taxes · Trust land · Lease rates · Water · Batteries · Grid · Homes · Businesses

How many power plants are planned in Arizona?

EIA's August 2026 survey lists 41 planned plants in Arizona, about 15,413 MW (27 with battery storage, 26 with solar, 3 with gas (combustion turbine), 1 with solar thermal, 1 with gas (combined cycle)). Plants that pair solar with batteries count once.

Source: U.S. Energy Information Administration, Form EIA-860M, August 2026 file, planned generators. Stages, from EIA's status codes: planned with approvals not started, approvals pending, approvals received, under construction (up to or over half done), and built but not yet operating. EIA lists generators that owners have reported as planned, from early planning through construction; utilities' own interconnection queues list many more requests that may never be built. The balancing authority code shows whose grid the plant joins (AZPS = APS, SRP = Salt River Project, TEPC = Tucson Electric Power, WALC = WAPA Desert Southwest, CISO = California ISO). Parcel & Grid is not affiliated with EIA.

Does Arizona require a state permit for solar, wind, or storage?

• Generating plants: the state's Certificate of Environmental Compatibility is required for a "plant," which state law defines as a thermal, nuclear, or hydroelectric unit of 100 MW or more. Solar panels, wind turbines, and batteries are not on that list (A.R.S. 40-360; 40-360.03).
• Transmission lines: a certificate is required for new lines of 115 kV or more with five or more new structures spanning more than one mile, which can include the line that connects a solar or wind project (A.R.S. 40-360). The Line Siting Committee holds a hearing 30 to 60 days after notice and must decide within 180 days of filing; the Corporation Commission then has 60 days to act (40-360.04; 40-360.07; Line Siting Committee).
• No state decommissioning or setback law: a 2023 bill setting solar and wind decommissioning standards was vetoed (Governor's veto list), and a 2026 solar decommissioning bill failed 4–4 in the Senate Natural Resources Committee on March 24, 2026 (LegiScan: HB 2781). Rules come from county zoning (A.R.S. 11-811); see each county page.
• Farming and grazing: county zoning may not restrict general agricultural or grazing use on tracts of five or more contiguous commercial acres (A.R.S. 11-812).

Property taxes on solar, wind, and storage

• Valued by the state: the Arizona Department of Revenue values renewable energy and storage equipment at 20% of its depreciated cost, through 2040; equipment that serves the owner's own use is excluded (A.R.S. 42-14155). A 2026 bill would have raised this to 100% for many projects; we could not confirm that it became law, and the statute still reads 20% (HB 2918 summary).
• Agricultural class: land qualifies for the agricultural class only when its primary use is agricultural (A.R.S. 42-12152), so land converted to a solar facility would likely lose it. We found no Texas-style rollback tax; ask your county assessor. Leased farmland must have a lease abstract on file with the assessor (Maricopa County Assessor guidelines).

State trust land and federal land

• State trust land: the State Land Department offers solar sites as long-term commercial leases bid at public auction (ASLD solar applications). One 2024 auction notice for 6,939 acres in La Paz County set a 30-year lease with yearly rent of 4% of the appraised value (or the winning bid, if higher), plus phased-in yearly rent of $2,000 per MW (ASLD lease notice 03-122284).
• Federal land: the Bureau of Land Management's 2024 Western Solar Plan opened more than 31 million acres in 11 states to solar applications (BLM solar plan).

What are developers paying Arizona landowners?

We found no published survey of private-land solar or wind lease rates in Arizona. The only official figures are State Land Department auction terms, like the example above. Compare any offer with the questions in is my offer fair? Record the lease or a memorandum of it with the county recorder: an unrecorded instrument does not give notice to later buyers (A.R.S. 33-411; 33-412).

Water

Arizona has eight Active Management Areas, where groundwater use is regulated (ADWR). The newest include Willcox, designated January 8, 2025 (ADWR: Willcox AMA). Water for construction and dust control can be a real constraint; ask the developer where it will come from.

Battery storage safety

• The state fire code adopts the 2018 International Fire Code (A.A.C. R4-36-201); the State Fire Marshal reviews plans mainly where there is no local fire code (plus state buildings and schools), and its page cites the 2012 edition (State Fire Marshal). Cities and counties often adopt newer editions.
• The Corporation Commission reported nearly 3,900 MW of utility-scale battery storage operating in Arizona (ACC).
• After a 2019 battery fire and explosion at APS's McMicken battery site, the investigation recommended gas detection, explosion-aware ventilation, thermal barriers, and emergency plans (DNV GL report for APS).

State and federal offices a project deals with

• ADEQ: construction stormwater permit (AZG2025-001, effective August 29, 2025) for disturbance of 1 acre or more (ADEQ).
• Arizona Game and Fish: online environmental review tool (ERT), project evaluation program (AZGFD), and solar development guidelines released April 22, 2026 (AZGFD).
• State Historic Preservation Office: consultation for state and federal actions (SHPO).
• U.S. Fish and Wildlife Service: Arizona Ecological Services (USFWS).
• ADOT: oversize and overweight permits (ADOT).

How projects connect to the grid in Arizona

Arizona has no regional grid operator running a shared queue. Each transmission owner runs its own interconnection process under its federal tariff:

• APS: requests through PowerClerk, with a cluster application window once a year (APS FERC generator interconnections).
• TEP: generators over 20 MW follow the large generator procedures in TEP's tariff, assigned to cluster windows (TEP).
• SRP: cluster studies under its generator interconnection procedures; the queue is on SRP's OASIS (SRP procedures (PDF)).
• WAPA: federal transmission; the requester pays all interconnection costs (WAPA).

APS (2016), SRP (2020), and TEP (2022) trade in the Western Energy Imbalance Market (CAISO WEIM report). In November 2024, APS, SRP, TEP, and UNS Electric announced plans to join SPP's Markets+ (ACC), which targets an October 2027 start (SPP Markets+). See the western timeline and utility application links.

Solar and batteries for Arizona homes

What you are paid for extra solar depends on whether your utility is regulated by the Arizona Corporation Commission (APS, Tucson Electric Power, UniSource Energy, and the co-ops) or is SRP, which sets its own prices.

• APS and TEP export rate: exported power is credited at a "Resource Comparison Proxy" rate, locked for 10 years from interconnection, that may not fall more than 10% a year for new customers. APS's rate for customers interconnecting September 1, 2026 through August 31, 2027 is $0.05554 per kWh (APS RCP rate schedule). TEP's rate from October 1, 2026 through September 30, 2027 is $0.0462 per kWh (TEP).
• APS solar fee: the commission reaffirmed a grid access charge of about $2 to $3 a month for newer APS solar customers in December 2024 (ACC); in June 2026 the Arizona Court of Appeals overturned it and sent it back to the commission (KJZZ). Check APS for the current status.
• SRP: on its export price plans, SRP credits exported energy at a fixed price of 3.45 cents per kWh (SRP: compare solar plans). Its Customer Generation plan (E-27) has monthly demand charges (E-27 rate book); the newer E-28 plan is open to customers with on-site generation (E-28 rate book). SRP's existing residential solar plans stay open until the November 2029 billing cycle (SRP 2025 price decision).
• Connecting: the commission's interconnection rules give inverter systems of 20 kW or less a "Super Fast Track" review (A.A.C. R14-2-2601 to 2628). State law generally bars installing, energizing, or interconnecting a system before the utility approves the application; if the utility has not acted within 60 days, the system may be installed but not energized (A.R.S. 44-1764). Do not turn a system on until the utility issues permission to operate (APS process guide; TEP; SRP).
• HOAs: deed restrictions and HOA rules that effectively prohibit solar are void; an HOA may adopt reasonable placement rules that do not prevent installation or impair the system (A.R.S. 33-439; 33-1816). City solar permit fees may not exceed the city's actual cost of issuing the permit (A.R.S. 9-468).
• Taxes: qualifying solar devices "are considered to add no value" to the property for property tax (A.R.S. 42-11054); retail sales of solar energy devices are deducted from the state sales tax base when sold by a registered solar retailer (A.R.S. 42-5061); and a state income tax credit covers 25% of the cost, up to $1,000 (A.R.S. 43-1083). Leased systems and power purchase agreements do not qualify for the credit (ADOR Form 310 instructions).
• Contracts: a solar sale or lease agreement must include warranty and performance information in a form approved by the Registrar of Contractors (A.R.S. 44-1762), and buyers can cancel within at least three business days after signing (A.R.S. 44-1763). Complaints go to the Attorney General.

Solar and batteries for Arizona businesses

• Export rate: TEP applies the Resource Comparison Proxy to residential and small commercial customers (TEP).
• Co-ops: in December 2025 the commission approved Sulphur Springs Valley Electric Cooperative's plan to end net metering for non-residential customers, with existing customers grandfathered (ACC open meeting highlights).
• No state business credit: Arizona's commercial solar income tax credit covered only tax years through 2018 (A.R.S. 43-1085).
• Larger systems: the same commission rules set the review levels and timelines for larger systems at APS, TEP, and UniSource (Article 26); SRP has separate commercial interconnection requirements (see the utility links page).

Federal tax credits after the July 2025 law

• Homes: the 30% residential clean energy credit (section 25D) is not allowed for expenditures made after December 31, 2025. The IRS treats an expenditure as made when installation is completed, so a system paid for in 2025 but finished in 2026 does not qualify (IRS FAQ on Public Law 119-21; IRS: residential clean energy credit).
• Businesses and third-party owners: for wind and solar facilities whose construction begins after July 4, 2026, the business credits (sections 48E and 45Y) end for facilities placed in service after December 31, 2027 (IRS Notice 2025-42; 26 U.S.C. 48E).
• Begin construction: construction begins when "physical work of a significant nature begins"; the older 5% cost safe harbor remains only for solar facilities of 1.5 MW or less (IRS Notice 2025-42).

Tax rules depend on your situation; ask a tax professional before relying on any credit.