Queen Creek homeowners spend more on cooling than almost any other residential market in the country — and the federal tax credits, APS and SRP utility rebates, and Arizona-specific incentive programs available in 2026 make qualifying efficiency upgrades significantly more affordable than their sticker price suggests. Understanding the full incentive stack available this fall is the most financially impactful preparation any East Valley homeowner can do.
Available Credits: Federal and State Incentives
The federal Section 25C Energy Efficient Home Improvement Credit provides a 30 percent tax credit on qualifying improvements, capped at $3,200 annually ($1,200 for insulation, windows, and audits; $2,000 for heat pumps and heat pump water heaters). The cap resets each year.
The federal Residential Clean Energy Credit (Section 25D) provides a 30 percent uncapped credit on qualifying solar panel installations and battery storage systems — directly relevant to Queen Creek given Arizona’s solar irradiance and APS/SRP’s net metering programs.
APS and SRP both offer energy efficiency rebate programs that st...
