The federal energy tax credits have expired
Costs and payback figures on this page may still assume a federal credit that no longer exists. The 30% Residential Clean Energy Credit (25D) and the Energy Efficient Home Improvement Credit (25C) both ended for property placed in service after 31 December 2025, and the home EV charger credit (30C) ended after 30 June 2026. Assume no federal credit on work done today.
What expired, and what still exists →Is Electrification Worth It in Arizona?
120°F summer days. 3°C winter nights. How does a heat pump handle that?
Arizona is actually perfect for heat pumps, but not for the reason most people think. Yes, the cooling load is insane—Phoenix uses more electricity for AC than almost anywhere else in America. But you barely heat at all. Maybe 20-30 days per year. And natural gas costs are rising fast as the state grows.
Get a high-SEER heat pump and solar. That's the play. Your AC runs 6+ months a year, so efficiency matters more here than almost anywhere. A SEER2 18+ heat pump will cut your summer bills by 30-40%. Solar pays for itself in 5-6 years with Arizona's sun hours. This isn't even a close call.
What Do Energy Costs Look Like in Arizona?
Here's the real data from EIA (Energy Information Administration). These are the rates that determine whether electrification makes financial sense.
Visual ROI Analysis
Payback Period Comparison
Lower is better • Shortest payback = fastest return on investment
Annual Savings Comparison
Higher is better • More annual savings = greater long-term benefit
Cumulative Net Savings Over Time
Point where line crosses $0 = payback achieved • Steeper line = faster savings growth
Which Upgrades Pay Off the Fastest?
The economics are broken down for each major upgrade. Pay attention to the payback period—that's how long until savings equal your net cost.
Heat Pump HVAC
Solar Panels
Heat Pump Water Heater
EV Charger + Electric Vehicle
Should You Go All-In?
Here's what it costs to electrify everything at once—heat pump HVAC, solar panels, heat pump water heater, and EV charger. The upfront cost is high, but so are the savings.
Best ROI for Arizona
Based on your state's energy costs and climate, EV Charger offers the best return on investment with an average payback of 1.2 years and an ROI of 1475%.
0.0 years slower than average compared to the national average.
Ready to electrify your Arizona home?
Get free quotes from local contractors who specialize in heat pumps, solar, and electrification.