Chandler, AZ Solar Panels
Solar Power in Chandler
Chandler, AZ gets over 300 sunny days a year, and Arizona ranks 3rd in the nation for residential solar installations — a reflection of just how well solar performs here. With local electricity prices rising 22% between 2020 and 2024, many Chandler homeowners are looking to better understand their energy options.
This guide is designed to help you do exactly that. From how the installation process works to what makes Chandler a strong fit for solar, here’s what you need to know about solar panels for your home.
How Much Do Solar Panels Cost in Chandler, AZ?
Using real installation data from Chandler and nearby communities like Gilbert, Tempe, and Mesa, this calculator gives you an accurate estimate of what solar costs for homes like yours — no guesswork, just local numbers.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Chandler gets 300+ sunny days a year and Arizona ranks 3rd in the nation for residential solar — making it one of the best places to go solar.
- Arizona homeowners can save up to $65,000 over 25 years with solar, plus benefit from state tax credits, a sales tax exemption, and a property tax exemption.
- You don’t need to buy solar panels to benefit from them — Palmetto’s LightReach lease lets Chandler homeowners go solar for as little as $109/month with no upfront cost.
Chandler Electricity Prices
Electricity costs in Chandler have been climbing steadily — and understanding what’s driving that trend can help you make smarter energy decisions.
Arizona electricity rates rose from 12.5¢ per kWh in 2021 to 14.9¢ in 2024 — nearly a 20% increase in just three years. That’s a meaningful jump for households running air conditioning through long Chandler summers.
Solar installation in Chandler gives homeowners a way to generate their own electricity, reducing how much they draw from the grid. With over 300 sunny days a year, Chandler is well-suited to offset a significant portion of monthly energy use.
Once installed, solar panels provide a fixed energy source for 25 years or more. As grid electricity rates continue to rise, that stability becomes increasingly valuable — helping Chandler homeowners better predict and manage their long-term energy costs.
Price of Energy: Arizona vs National Average
Chandler Area Utility Providers
Chandler homeowners are primarily served by two utilities: APS and SRP. Based on 2023 data — the most recent available — understanding what each charges per kilowatt-hour (kWh) is a helpful starting point for evaluating your energy costs.
In 2023, APS charged 15.3¢/kWh and SRP charged 12.5¢/kWh. Both sit below the 2023 national average of 16.0¢/kWh. APS is above Arizona’s state average of 14.0¢/kWh, while SRP falls below it.
Even at moderate rates, electricity costs add up over time — especially as rates trend upward. For many Chandler homeowners, understanding solar installation becomes a practical way to plan for more predictable long-term energy costs.
Chandler Utilities Electricity Rates
Arizona Solar Incentives
Chandler homeowners have access to several solar incentives in Arizona that can help reduce the upfront and long-term cost of going solar.
Arizona offers a personal income tax credit, a sales tax exemption on solar equipment, and a full property tax exemption on added home value. APS customers in Chandler may also qualify for the APS Storage Rewards Pilot for battery storage.
Note that the federal 30% residential solar tax credit was eliminated by the Big Beautiful Bill. Homeowners who lease through Palmetto’s LightReach program benefit indirectly — Palmetto claims the commercial ITC and passes savings through lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Federal Battery Storage Tax Credit (ITC) | Tax Credit | A 30% federal tax credit for battery storage systems with a capacity of at least 3 kWh, available through 2032 before phasing down. | Learn More |
| Arizona Credit for Solar Energy Devices | Tax Credit | Arizona offers a personal income tax credit equal to 25% of the cost of a solar energy system, up to a maximum of $1,000. | Learn More |
| Arizona Solar Sales Tax Exemption | Sales Tax Exemption | Arizona exempts solar energy equipment — including panels, inverters, batteries, and mounting hardware — from the state’s 5.6% sales tax. | Learn More |
| Arizona Solar Energy Property Tax Exemption | Property Tax Exemption | Solar energy systems installed on Arizona properties are fully exempt from property tax assessment, meaning the added home value from solar does not increase your property tax bill. | |
| Arizona Public Service (APS) – Storage Rewards Pilot | Rebate | APS offers financial incentives to homeowners with qualifying battery storage systems who allow the utility to draw on stored energy during peak demand periods. | Learn More |
| Arizona Renewable Energy Production Tax Credit (Commercial) | Tax Credit | A corporate or personal income tax credit for electricity produced by qualifying renewable energy systems of at least 5 MW, paid over a 10-year period at rates up to $0.04/kWh. | Learn More |
Homeowners who install a battery energy storage system can claim a 30% federal Investment Tax Credit (ITC) on the full cost of the battery, provided it has a minimum capacity rating of at least 3 kWh. This credit applies whether the battery is paired with solar panels or installed as a standalone system, and it directly reduces your federal income tax liability dollar-for-dollar. For a typical home battery like a Tesla Powerwall or similar system, this can translate to thousands of dollars in savings.
Unlike the residential solar ITC — which was eliminated by the “One Big Beautiful Bill” signed in July 2025 — the battery storage credit remains available through 2032 at the full 30% rate. It then steps down to 26% in 2033 and 22% in 2034 before expiring entirely in 2035. This gives Chandler homeowners a meaningful window to add battery storage and still capture significant federal savings.
To claim the credit, file IRS Form 5695 with your federal tax return for the year the system is placed in service. If the credit exceeds your tax liability in a given year, the unused portion can be carried forward to future tax years. You must own the battery system outright — leased systems do not qualify.
Arizona homeowners who purchase a new solar energy system — including photovoltaic (PV) systems, solar water heaters, solar pool heating, and solar batteries — can claim a state income tax credit equal to 25% of the total system cost, up to a lifetime maximum of $1,000. This credit is claimed on Arizona Form 310 and is applied directly against your state income tax liability, reducing what you owe dollar-for-dollar.
To be eligible, you must own the system outright — solar leases and power purchase agreements (PPAs) do not qualify. The system must also come with at least a two-year warranty on the panels and a one-year warranty on other equipment such as batteries and EV chargers. The $1,000 cap is a lifetime limit per taxpayer (the program has been in place since 1995), so if you have claimed this credit before, your remaining available credit may be reduced.
If the credit exceeds your Arizona tax liability in the year it is claimed, the unused portion can be carried forward for up to five years. For more information or to download Form 310, visit the Arizona Department of Revenue website or the Governor’s Office of Resiliency Clean Energy Hub at resilient.az.gov.
When you purchase a qualifying solar energy system in Arizona, you pay zero state sales tax on the equipment. This exemption covers photovoltaic panels, inverters, batteries, mounting hardware, and other eligible solar components. Arizona’s state sales tax rate is 5.6%, so on a $20,000 system, this exemption alone saves you more than $1,100 — and on larger systems, savings can exceed $1,600 or more.
The exemption applies to residential, commercial, and general public installations with no maximum cap on savings. Arizona removed its previous $5,000 savings cap in 2006, meaning the full purchase price of your system is exempt regardless of system size. Eligible technologies include photovoltaics, solar water heating, solar space heating, solar thermal electric, passive solar, wind, solar pool heating, and daylighting systems.
You do not need to take any special action to claim this exemption — your solar installer is responsible for registering with the Arizona Department of Revenue and applying the exemption at the point of sale. For questions, contact the Arizona Department of Revenue Tax Assistance line at (602) 255-3381 or (800) 352-4090.
Installing solar panels typically increases the market value of your home, but in Arizona, that added value is completely excluded from property tax assessments. This means residents of Chandler can enjoy the full financial and energy benefits of going solar without paying a single dollar more in property taxes — a significant long-term savings advantage that compounds every year you own the system.
The exemption applies to a wide range of eligible technologies including solar photovoltaics, solar water heating, solar space heating, solar thermal electric, passive solar, solar pool heating, wind systems, geothermal, and more. It covers residential, commercial, and industrial properties with no cap on the system size or value of the exemption.
To claim the exemption, property owners must provide their county assessor with documentation confirming the purchase and installation of the eligible equipment, including costs. This documentation must be submitted no less than six months before the notice of full cash value is issued for the initial valuation year. Contact your local county assessor’s office for specific submission deadlines and required forms.
Arizona Public Service (APS) operates a Storage Rewards Pilot program that compensates residential customers for making their home battery storage available to the utility during periods of peak electricity demand. By enrolling, homeowners in Chandler can earn financial incentives while helping APS manage grid stress — a win-win for both participants and the broader electricity system.
The program is compatible with select battery systems, including FranklinWH residential energy storage systems. Homeowners who install a qualifying battery can enroll and receive payments for allowing APS to dispatch stored energy during designated peak events. Your home’s power is maintained throughout these events, and you retain backup power capability.
For homeowners who want to participate but are concerned about upfront costs, leasing options are available through financing platforms like Palmetto’s LightReach, which can lower the initial investment while still allowing participation in the incentive program. Contact APS directly or visit aps.com for current program details, compatible equipment lists, and enrollment information.
Arizona’s Renewable Energy Production Tax Credit is available to businesses and individuals who own and operate qualifying renewable energy systems with a minimum capacity of 5 megawatts (MW). The credit is calculated based on the actual kilowatt-hours (kWh) of electricity produced by the system each year and is paid out over a 10-year period. For photovoltaic and solar thermal electric systems, the credit starts at $0.04/kWh in years 1 and 2, steps down gradually, and reaches $0.01/kWh in years 9 and 10.
The maximum credit is $2 million per system per year, and the total annual program budget is $20 million statewide. The credit may be applied against either corporate or personal income taxes, providing flexibility for different business structures. Only systems installed after December 31, 2010 are eligible.
This incentive is best suited for large-scale commercial or utility solar developers rather than typical residential homeowners. For full eligibility requirements, application procedures, and current program availability, visit the Arizona Department of Revenue’s tax credits page at azdor.gov.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Arizona incentives.
Get a Free QuoteChandler Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Chandler’s 300+ sunny days and low cloud cover make it one of the best cities for solar production. High temperatures can slightly reduce panel efficiency, but output remains consistently strong year-round.
Solar Production in Chandler by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Panel Systems in Chandler
We’ve mapped solar installations across Chandler to show just how many neighbors have already made the switch. Explore the heatmap below to see which neighborhoods and communities are leading the way on solar energy in your area!
Leasing Solar Panels
In Arizona, Palmetto offers a solar lease through its LightReach program — available to Chandler homeowners served by APS, SRP, and other Arizona utilities. With a lease, you pay a fixed monthly amount (for example, around $109/month for a typical medium-sized home) rather than paying tens of thousands of dollars upfront. Palmetto owns and maintains the system, so you never have to worry about repairs or performance issues.
Compared to a cash purchase, leasing removes the large upfront investment and the responsibility of ongoing maintenance. When you buy outright, you own the system — but you’re also on the hook for any repairs, inverter replacements, or performance issues that come up over 25 years. With a lease, Palmetto handles all of that, and the system comes with a 90% production guarantee so you know what to expect each year.
Want to understand the full picture before deciding? Compare buying vs. leasing solar to see which option fits your situation best. Both paths can lead to meaningful long-term savings — the right choice depends on your financial goals and how hands-on you want to be with your system.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes strong sense in Chandler. With over 300 sunny days per year and 6.5 average peak sun hours daily, Chandler is one of the best cities in the country for solar production. Arizona also offers a state tax credit, a sales tax exemption, and a full property tax exemption on added home value — making the economics even more favorable.
For Chandler homeowners who want to avoid upfront costs, Palmetto’s LightReach solar lease removes the barrier entirely — no money down, with payments starting around $109/month. You start saving from day one, with no maintenance responsibilities.
Chandler does not have traditional net metering. Most Chandler homeowners are served by APS or SRP, both of which use a Net Billing (Export Credit) program instead. With APS, excess solar energy sent to the grid is credited at $0.06857/kWh, and customers are locked into that rate for 10 years. SRP credits excess energy at $0.02–$0.06/kWh depending on the season and your chosen rate plan.
Under net billing, export credits are worth less than the retail electricity rate — meaning the bill offset is smaller than traditional 1-for-1 net metering. Understanding your utility’s specific export credit rate is an important part of evaluating your solar savings in Chandler.
Yes, solar panels can increase your home value in Chandler. According to a Zillow study, homes with solar panels sell for about 4.1% more than comparable homes without them. On a $450,000 Chandler home, that’s roughly $18,450 in added value.
Arizona also has a solar property tax exemption, meaning that added home value won’t increase your property tax bill. So Chandler homeowners benefit from both a higher resale value and no additional tax burden from the upgrade.
With Palmetto’s LightReach lease, Chandler homeowners can go solar for as little as $109/month with no upfront cost. Palmetto owns and maintains the system, and passes along savings from the commercial solar tax credit through lower monthly payments.
For a cash purchase, a typical medium-sized home system runs around $23,173 after Arizona’s $1,000 state tax credit. Note that the federal 30% residential solar tax credit was eliminated by the Big Beautiful Bill. Use the calculator above for a personalized estimate based on your home size.
For many Chandler homeowners, solar is worth it financially — especially with a lease. With Palmetto’s LightReach program, you can go solar for as little as $109/month with no upfront cost. Because the monthly lease payment is typically less than your current electricity bill, most homeowners start saving immediately on day one.
Chandler’s 300+ sunny days and rising electricity rates (up nearly 20% since 2021) make the long-term math even more compelling. Cash buyers can expect to save around $65,000 over 25 years, while leaseholders benefit from predictable payments and zero maintenance costs.
Palmetto Solar is a strong choice for Chandler homeowners. As a national company with a local focus, we’ve completed 4,982 installs across Arizona since 2020 — with a trusted install network and some of the best financing options in the industry.
We offer flexible options including our LightReach solar lease starting at just $109/month with no upfront cost, or a cash purchase with Arizona state incentives applied. Palmetto handles everything from installation to ongoing maintenance, so Chandler homeowners can go solar with confidence.
With Palmetto’s LightReach lease, Chandler homeowners pay one simple monthly payment that covers the solar panel system, installation, monitoring, maintenance, and a 90% Production Guarantee — with no upfront cost. For a typical 8.50 kW system, the estimated monthly payment is approximately $109/month, calculated using Arizona’s production ratio of 1,624 kWh/kW/year at a rate of $0.095/kWh.
Because Palmetto owns the system, it qualifies for the commercial Investment Tax Credit (ITC) — and passes those savings to you through lower monthly payments. Since the lease payment is typically less than your current electricity bill, most Chandler homeowners start saving from day one.