Solar comparison
Arizona vs Nevada Solar: Sun, Rates, and Payback in the Desert Southwest
Compare Arizona and Nevada residential solar: peak sun hours, electricity rates, net metering policies, and payback assumptions in two top solar states.
Quick answer
What this comparison means
Arizona and Nevada both have exceptional sun (5.5+ peak sun hours) but different utility rate structures and net metering rules. Arizona's exported solar credit has been reduced from retail rates by ACC decisions, while Nevada restored favorable net metering (NEM 2.0) after 2017 backlash. Both states repay solar in 7–11 years, with Nevada generally offering better export credit terms.
Comparison table
| Factor | Option A | Option B | Why it matters |
|---|---|---|---|
| Electricity rate | $0.16/kWh | $0.14/kWh | Both states near national average. NV rates slightly higher in Las Vegas. |
| Solar cost | $2.35-$2.85/W | $2.45/W | Both states have competitive install costs; AZ marginally lower due to market scale. |
| Payback | 7-9 years | 7-9 years | Both repay in 7–11 years. NV slightly faster due to better export credit. |
| Peak sun hours | ~6.0 (Phoenix) | ~5.8 (Las Vegas) | Both are top-tier for US solar production. Production is not the differentiator. |
| Net metering / export credit | Export credit below retail rate (ACC Resource Comparison Proxy) | NEM 2.0 — near-retail export credit (tiered, ~95% of retail) | NV's restored net metering is more favorable for solar-only systems. |
| State incentive | $1,000 state tax credit (residential, capped) | No state tax credit; property tax exemption for solar | Neither state offers substantial ongoing incentives beyond net metering. |
| Best next check | Verify current APS/SRP/TEP export credit rate in your zone | Check NV Energy NEM rate tier and monthly charge | Utility-specific rate plans matter more than state averages. |
Data Sources
This comparison uses state electricity-rate ranges, local incentive context, net-metering rules, and solar production assumptions informed by NREL PVWatts-style modeling. Final quotes, utility tariffs, and interconnection rules can materially change the economics.
Assumptions
Payback and ROI are directional estimates, not financial advice. They assume typical residential roof conditions, stable household usage, currently available incentives, and separate treatment of battery backup value, financing costs, and installer-specific add-ons.