Nathan Healy
Certified by Nathan Healy
Updated: July 2025
Quality Solar Solutions Since 2011
Palmetto has served 20,000+ customers across 31 states with an approval rating over 85%.
01

Solar in Gilbert

Gilbert homeowners are discovering the power of solar energy as Arizona ranks 3rd for residential solar installations nationwide. With electricity prices rising 22% from 2020 to 2024, many residents are exploring how solar panels for home use can provide long-term energy savings.

This guide covers everything you need to know about solar installation in Gilbert, from understanding the process to navigating local regulations and incentives.

ARIZONA by the Numbers

6th Most residential solar in the United States
159k Households have installed solar panels
~$8k Arizona average solar rebate savings
~$65k Gilbert average savings over 25 years
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Key Takeaways

  • Gilbert receives excellent solar irradiance year-round with over 300 sunny days annually, making it ideal for solar energy production.
  • Arizona offers substantial solar incentives including 30% federal tax credit and $1,000 state credit, reducing installation costs significantly.
  • Rising electricity rates make solar increasingly valuable as Gilbert utility costs have increased 19% since 2021.
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Palmetto Reviews

04

Solar Cost Calculator

Our solar cost calculator uses real installation data from Gilbert neighborhoods including Val Vista Lakes, Agritopia, and Power Ranch. Get accurate pricing estimates based on actual local projects, not generic industry averages.

Small Home Up to 2,000 sq ft
Medium Home 2,000-3,000 sq ft
Large Home Over 3,000 sq ft
System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in Arizona.
Recommended
System
8.50 kW
Cost Breakdown
Your estimated investment
System Cost
$24173
Federal Tax Credit (30%)
$-7252
State Incentives
$-1000
Final
Cost
$15921
Savings
Your total financial benefit
Monthly Savings
Average utility bill reduction
$149
Payback Period
Break-even point
7.9 years
25-Year
Savings
$65285
05

Gilbert Electricity Prices

Understanding Gilbert’s electricity costs helps homeowners make informed energy decisions as rates continue climbing across Arizona.

Gilbert electricity rates have risen from 12.5 cents per kWh in 2021 to 14.9 cents in 2024, representing a 19% increase over three years.

Solar panels can help Gilbert homeowners reduce their dependence on grid electricity, providing protection against these rising utility costs through clean energy generation.

Over 25 years, solar systems can offer significant savings as electricity rates continue increasing, while your solar investment provides predictable energy costs.

Price of Energy: Arizona vs National Average

10¢
20¢
30¢
13.7¢
12.5¢
15.0¢
13.0¢
16.0¢
14.0¢
16.5¢
14.9¢
2021
2022
2023
2024
US Average
Arizona

Gilbert Area Utility Providers

Gilbert residents receive electricity from two main providers: Arizona Public Service (APS) at 15.3¢ per kWh and Salt River Project (SRP) at 12.5¢ per kWh in 2023.

SRP’s rates fall below both Arizona’s 14.0¢ state average and the 16.0¢ national average, while APS exceeds state rates but remains competitive nationally.

These varying electricity costs make solar particularly valuable for APS customers, while SRP customers can still benefit from rate stability and energy independence solar provides.

Gilbert Utilities Electricity Rates

APS
15.30¢
-4%
SRP
12.50¢
-22%
AZ Average
14.00¢
-12%
US Average
16.0¢
06

Arizona Solar Incentives

Gilbert homeowners can significantly reduce solar installation costs through various solar incentives in Arizona at federal and state levels.

Arizona offers multiple tax credits and exemptions, including a 25% state tax credit up to $1,000, plus property and sales tax exemptions that reduce upfront costs.

These incentives can change over time, so research current programs thoroughly and consider acting promptly to maximize your savings.

$8,252

Average savings in Arizona solar rebates

Incentive Type Description Source
Residential Clean Energy Credit Federal tax credit A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed Learn More
Credit for Solar Energy Devices State tax credit Arizona Homeowners receive the lesser of $1,000 or 25% off their solar panel installation. Learn More
Property Tax Exemption State tax exemption No property tax increase from added solar value. Prevents higher assessment on solar equipment. Learn More
Sales Tax Exemption State tax exemption No state or local sales tax on solar equipment and installation. Reduces upfront cost immediately. Learn More

The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.

The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.

Arizona’s Credit for Solar Energy Devices is a state tax credit that helps homeowners save money when they install solar panels on their Arizona residence. This nonrefundable tax credit reduces the amount of state income tax you owe, dollar-for-dollar, making solar energy more affordable for Arizona families.

To qualify for this credit, you must be an individual taxpayer who installs a solar energy device at your primary or secondary residence located in Arizona. The credit is nonrefundable, which means it can reduce your Arizona state tax liability to zero, but any unused credit amount cannot be refunded to you as cash. You’ll need to file Form 310 with your Arizona state tax return to claim this benefit.

While the official source doesn’t specify the exact credit amount or percentage, this incentive has been available for many years and continues to be offered for recent tax years through 2024. The credit applies to solar energy devices installed at your Arizona home, helping offset the upfront costs of going solar while supporting the state’s clean energy goals.

Arizona’s Property Tax Exemption for renewable energy equipment allows homeowners to exclude the added value of their solar panel system from their property tax assessment. This means that while your solar installation may increase your home’s overall value, you won’t pay additional property taxes on that increased value. The exemption applies to the full value of qualifying renewable energy equipment, including solar panels, inverters, and related components.

To qualify for this exemption, homeowners must file the appropriate property tax form (Form 82054REE) with the Arizona Department of Revenue. The exemption is available for various types of renewable energy systems installed on residential properties. Property owners need to provide detailed information about their renewable energy equipment to help assessors determine the full cash value for property tax purposes. This incentive helps make solar installations more affordable by ensuring homeowners don’t face higher property tax bills simply for choosing clean energy.

Arizona’s Solar and Wind Sales Tax Exemption removes state sales tax from the purchase and installation of solar and wind energy systems for your home. This means you won’t pay the standard Arizona sales tax (which varies by location but is typically around 5-10%) on your solar panels, inverters, batteries, and other system components, as well as the contractor’s installation services.

This exemption applies automatically at the point of sale when you purchase qualifying solar or wind equipment and installation services from contractors in Arizona. There are no income limits, application deadlines, or special forms to fill out – the tax exemption is built into Arizona state law and available to all homeowners who install these renewable energy systems. The savings can add up to hundreds or even thousands of dollars depending on your system size, making clean energy more affordable for Arizona families.

Net Billing in Arizona is a compensation system where solar homeowners receive credits for excess electricity their panels send to the grid. Unlike traditional net metering where you get full retail credit, net billing pays you a lower wholesale rate for your excess solar power. Each major utility in Arizona has its own net billing program with different credit rates and rules.

The financial benefits vary significantly by utility company. Arizona Public Service (APS) pays $0.06857 per kWh for excess power, Tucson Electric Power (TEP) pays $0.0633 per kWh, and UNS Electric pays $0.0755 per kWh – all with 10-year rate locks. Salt River Project offers seasonal rates between $0.02-$0.06 per kWh, while cooperative utilities like Mohave Electric pay around $0.0353 per kWh with annual rate adjustments. Most utilities require solar customers to switch to time-of-use rate plans, and some charge additional monthly fees ranging from $2.23 to $6.45.

Important considerations include annual credit true-ups where excess credits over $10-$25 are typically paid out and your account resets to zero. APS charges a monthly Grid Access Charge of $0.242 per kW of your system’s DC capacity. Rate locks vary – some utilities guarantee your export rate for 10 years while others adjust annually. The specific terms depend entirely on which utility serves your home, so understanding your utility’s particular net billing structure is crucial for calculating your solar savings accurately.

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 Quote
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Gilbert 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.

Gilbert’s abundant sunshine and clear skies create excellent solar conditions year-round. Even cities with challenging weather can achieve great solar production with proper system design.

Solar Production in Gilbert by Month

Daylight Hours
Energy Production (kWh/day)

What Can Your Solar System Power?

Summer Production (July)

[SummerProduction] kWh/day

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)

[WinterProduction] kWh/day

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

[AnnualProduction] kWh/year

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 Estimate
08

Solar Installations in Gilbert

We’ve mapped every solar installation across the United States to show you how Gilbert neighborhoods are embracing clean energy. Explore this interactive map to discover which communities near you have already made the switch to solar power!

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Leasing Solar Panels

Gilbert homeowners have access to solar leasing through Palmetto’s LightReach program, which offers lease options for customers served by Arizona Public Service (APS), Salt River Project (SRP), and other major Arizona utilities.

With solar leasing, you pay a fixed monthly amount (typically $100-200) instead of purchasing the system outright, eliminating the need for large upfront costs while Palmetto handles all maintenance and repairs. This differs from cash purchases where you’re responsible for system upkeep and must wait years to recoup your investment through energy savings.

Solar leasing provides immediate monthly savings on your electricity bill without the financial commitment of ownership, making clean energy accessible to more Gilbert families. Learn more about financing options through our comprehensive solar buying guide.

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 More
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Frequently Asked Questions

Yes, solar makes excellent sense in Gilbert, AZ. Gilbert receives over 300 sunny days annually with exceptional solar irradiance, making it ideal for solar energy production year-round.

With electricity rates rising 19% since 2021 and Arizona offering substantial incentives including 30% federal tax credit plus $1,000 state credit, Gilbert homeowners can achieve significant long-term savings while reducing dependence on grid electricity.

Gilbert doesn’t have traditional net metering, but Arizona utilities offer net billing programs. This means you receive credits for excess solar power sent to the grid, though at lower rates than full retail electricity prices.

Your utility determines the specific program – APS pays $0.06857/kWh, SRP offers $0.02-$0.06/kWh seasonally, and other providers have varying rates. Most programs include 10-year rate locks and annual credit true-ups for unused credits over $10-$25.

Yes, solar panels do increase home value in Gilbert, AZ. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without solar systems.

For Gilbert’s median home price, this translates to thousands of dollars in added value. Arizona’s property tax exemption ensures you won’t pay higher property taxes on the increased value from your solar installation, making it a smart long-term investment.

Solar installation costs in Gilbert typically range from $12,121 to $20,759 after incentives. This includes the 30% federal tax credit and $1,000 Arizona state credit, which significantly reduce upfront expenses.

System size determines final cost – small homes (6.38 kW) average $12,121, medium homes (8.50 kW) cost around $15,921, and large homes (11.20 kW) run approximately $20,759 after all incentives are applied.

Yes, solar is financially worth it in Gilbert. With Arizona’s excellent solar conditions and rising electricity costs (up 19% since 2021), most homeowners see payback periods of 7.8-8.0 years.

After incentives, systems cost $12,121-$20,759 but generate $49,002-$86,023 in 25-year savings. Monthly savings of $112-$197 provide immediate cash flow benefits while protecting against future rate increases.

We believe Palmetto Solar is the best choice for Gilbert homeowners. We’re a national company with local expertise, having completed 4,982 installations across Arizona since 2020.

Our comprehensive approach includes some of the industry’s best financing options, a reliable installation network, and ongoing customer support. We focus on making solar accessible and straightforward for Gilbert families.