All of Arizona · Tax exemption
Solar and Wind Energy Device Sales Tax Exemption (Arizona TPT)
Run by Arizona Department of Revenue
Arizona doesn't charge state transaction privilege (sales) tax on retail sales of solar energy devices, including solar panels, solar water heaters and small wind generators. The seller must be registered with the Department of Revenue as a solar energy retailer.
Amounts
How much you get
The state transaction privilege tax that would otherwise apply to the sale of the solar or wind energy device is deducted from the seller's tax base, so the saving is that tax on the purchase price. City privilege taxes aren't covered by this state deduction.
Eligibility
Do I qualify?
You need to meet all 3 of these.
Your home is in Arizona.
The seller takes the deduction, so it only applies when the retailer is registered with the Department of Revenue as a solar energy retailer.
What to doBuy from a retailer or installer registered with the Arizona Department of Revenue as a solar energy retailer, and ask them to confirm it before you buy. Get a quote from a contractor
Applies to solar energy devices as defined in Arizona tax law (systems that collect and transfer solar energy for heating, cooling, electricity or mechanical power, including wind generators), not to ordinary building parts.
Equipment
What equipment counts
Applying
How to apply
The discount comes off at the register.
- Choose a seller registered as a solar energy retailer.
The deduction is taken by the seller on its transaction privilege tax return; there's nothing for the buyer to file.
- Check the invoice.
The state transaction privilege tax shouldn't be charged on the solar energy device itself. City taxes may still apply.
Forms and instructionsA.R.S. 42-5061, Retail classification; definitions (subsection M) · Renewable Energy Generation Incentives - Arizona Governor's Office of Resiliency · A.R.S. 42-5075, Prime contracting classification
Stacking
Use it with
Your address
Next steps
Check that it covers your address. Then, if you want, ask for a contractor quote.
Is it available at your address?
Before anything else
Your quote request is in If a contractor we work with serves your ZIP, they can contact you. We take one request per person; contact us to change it.
Get an email if this program changes
We'll write if its amount, status or deadline changes. Nothing else.
FAQ
Questions
How much does Solar and Wind Energy Device Sales Tax Exemption (Arizona TPT) pay?
The state transaction privilege tax that would otherwise apply to the sale of the solar or wind energy device is deducted from the seller's tax base, so the saving is that tax on the purchase price. City privilege taxes aren't covered by this state deduction.
Do I have to use a contractor?
Yes. The seller takes the deduction, so it only applies when the retailer is registered with the Department of Revenue as a solar energy retailer.
Is it still available?
Yes. It was open when we last checked, on October 27, 2026.
Plain words
Words used on this page
References
Sources
This page is built from these official pages, run by the program itself.
- A.R.S. 42-5061, Retail classification; definitions (subsection M)
- Renewable Energy Generation Incentives - Arizona Governor's Office of Resiliency
- A.R.S. 42-5075, Prime contracting classification
When one of these pages changes, we re-check this page against it.
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