Gilbert, AZ Solar Panels
Solar Power in Gilbert
Gilbert, AZ is one of the sunniest cities in one of the most solar-friendly states in the country — and homeowners here are paying attention. Arizona ranks 3rd in the US for residential solar installations, and it’s easy to see why.
With Arizona electricity prices up 22% from 2020 to 2024, many Gilbert residents are exploring solar panels for their home as a practical way to understand and manage long-term energy costs. This guide covers what you need to know.
How Much Do Solar Panels Cost in Gilbert, AZ?
Using real installation data from Gilbert and nearby areas like Chandler, Mesa, and Queen Creek, this calculator gives you an accurate estimate of what solar panels would cost for your home — no guesswork, just local numbers.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Gilbert gets 6.5 peak sun hours per day — making it one of the best places in the country to generate solar energy and reduce your electricity bill.
- Arizona homeowners can save an average of $65,000 over 25 years with solar, thanks to strong sun, rising electricity rates, and state incentives like a $1,000 tax credit.
- You don’t need to buy solar panels to go solar — Gilbert homeowners can lease through Palmetto’s LightReach program for as little as $109/month with no upfront cost.
Gilbert Electricity Prices
Electricity rates in Gilbert, AZ have been rising steadily — and understanding what’s driving that trend can help homeowners make smarter long-term energy decisions.
Arizona electricity rates climbed from 12.5¢ per kWh in 2021 to 14.9¢ in 2024 — a nearly 20% increase in just three years. While Arizona rates remain below the national average of 16.5¢, the gap is closing fast.
For Gilbert homeowners exploring solar panel installation, that upward trend matters. Solar can help reduce dependence on grid electricity, meaning rate increases have less direct impact on your monthly energy bill over time.
Because solar panels typically carry a 25-year performance warranty, homeowners who install today are better positioned to manage energy costs regardless of where utility rates go — a meaningful advantage in a market with a clear upward trend.
Price of Energy: Arizona vs National Average
Gilbert Area Utility Providers
Most Gilbert homes are served by SRP (Salt River Project). Based on 2023 data — the most recent available — SRP’s average electricity rate was 12.5¢ per kWh.
That rate sits below both the Arizona state average of 14.00¢ and the national average of 16.0¢ per kWh in 2023. Even so, Gilbert’s intense summer heat drives up air conditioning usage — and total monthly bills.
Because solar reduces how much electricity you draw from the grid, it can help offset those high-usage months — even when the per-kWh rate looks competitive on paper.
Gilbert Utilities Electricity Rates
Arizona Solar Incentives
Gilbert homeowners have access to several solar incentives in Arizona that can help reduce the upfront and ongoing costs of going solar.
Arizona offers a state income tax credit, a sales tax exemption on solar equipment, and a property tax exemption — meaning installing solar in Gilbert won’t raise your property tax bill.
For homeowners who lease solar through Palmetto’s LightReach program, Palmetto applies the commercial ITC directly, and those savings are reflected in lower monthly lease payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Arizona Residential Solar Energy Tax Credit | Tax Credit | Arizona homeowners can claim a state income tax credit equal to 25% of the cost of a solar or wind energy device installed at their residence, up to a maximum of $1,000. | Learn More |
| Arizona Solar Equipment Sales Tax Exemption | Sales Tax Exemption | Arizona exempts qualifying solar energy equipment from state sales tax, saving homeowners approximately 5.6% on the purchase price of eligible solar components. | Learn More |
| Arizona Solar Energy Property Tax Exemption | Property Tax Exemption | Arizona law exempts the added home value attributable to a solar energy system from property tax assessments, so installing solar will not increase your annual property tax bill. | Learn More |
| Federal Battery Storage Investment Tax Credit (ITC) — 30% | Tax Credit | Homeowners who install a qualifying battery storage system with at least 3 kWh of capacity can claim a 30% federal tax credit on the total installed cost of the battery through 2032. | Learn More |
| APS Storage Rewards Pilot Program | Rebate | APS battery owners can earn approximately $110 per average kilowatt of battery output per season by enrolling in APS’s Storage Rewards Pilot, which pays homeowners for discharging stored energy during peak demand events. | Learn More |
| Arizona Net Billing (Excess Solar Export Credits) | Net Metering | Arizona’s major utilities compensate solar customers for excess electricity exported to the grid through net billing programs, crediting homeowners at a utility-specific rate that is lower than the retail electricity rate. | Learn More |
Arizona’s Residential Solar Energy Tax Credit allows homeowners to claim 25% of the total cost of a qualifying solar or wind energy device installed at their primary or secondary residence, up to a maximum credit of $1,000. Qualifying systems include photovoltaic (solar panel) systems, solar domestic water heating systems, solar pool and spa heating systems, passive solar building systems, solar daylighting systems, and wind turbines. This credit is applied directly against your Arizona state income tax liability.
If the credit exceeds your tax liability in the year it is claimed, the unused portion can be carried forward for up to five consecutive tax years — so you won’t lose the benefit if you don’t owe enough taxes in a single year. There is no expiration date on this program, and it is currently active for 2026 installations.
To claim the credit, complete Arizona Form 310 and attach it to your state income tax return for the year the system was installed. The official form and instructions are available through the Arizona Department of Revenue at azdor.gov. Note that the $1,000 cap applies regardless of how many solar devices are installed, so the maximum benefit per household is $1,000 total.
Arizona provides a full sales tax exemption on the purchase of qualifying solar energy devices and equipment, including solar panels, inverters, mounting hardware, and installation labor. This exemption is applied automatically at the point of sale by the seller — homeowners in Gilbert do not need to file any paperwork to receive this benefit. The state sales tax rate is approximately 5.6%, though local jurisdictions may add additional taxes, so actual savings will vary by location.
Eligible equipment includes photovoltaic systems, solar water heating systems, solar space heating systems, solar thermal electric systems, passive solar systems, wind energy devices, solar pool heating systems, and daylighting systems. The exemption applies to both residential and commercial installations with no maximum dollar cap, making it a valuable savings tool for larger systems.
It is important to note that the sales tax exemption does not automatically extend to standalone battery storage systems, controls, or accessories that are not considered an integral part of the solar energy system. If you are pairing a battery with a new solar installation, confirm with your installer which components qualify. This exemption is authorized under Arizona Revised Statutes and has been in effect since 1997.
Under Arizona Revised Statutes §42-11054, the increase in a residential property’s assessed value resulting from the installation of a solar energy system is fully excluded from property tax calculations. This means that even though solar panels can significantly increase your home’s market value, your annual property tax bill will not go up as a result of the installation. This exemption is permanent and applies statewide to residential, commercial, and industrial properties.
For most Gilbert (Maricopa County) homeowners, this translates to an estimated savings of $100–$300 per year in property taxes, depending on the size of the system and the local tax rate (millage rate). In counties with higher millage rates, the annual savings can be even greater. Over the life of a solar system (25+ years), this exemption can represent thousands of dollars in cumulative tax savings.
The exemption is generally applied automatically, but homeowners may be required to submit documentation of system costs and equipment to their county assessor. It is recommended to contact your local county assessor’s office to confirm the process in your jurisdiction and ensure the exemption is properly recorded. No annual renewal is required once the exemption is in place.
The federal Battery Storage Investment Tax Credit allows homeowners to claim 30% of the total installed cost of a qualifying battery storage system directly against their federal income tax liability. To qualify, the battery must have a minimum capacity of 3 kWh. Critically, the battery does not need to be paired with solar panels — standalone battery installations also qualify for the full 30% credit. The credit covers the cost of the battery unit, inverter, installation labor, and any necessary electrical panel upgrades.
As a practical example, a Tesla Powerwall 3 with a fully installed cost of approximately $16,000 would generate a federal tax credit of $4,800. For a typical home battery system costing between $12,000 and $16,000, homeowners can expect a credit of $3,600 to $4,800. This credit is currently set at 30% through 2032, making 2026 an excellent time to take advantage of it. If the credit exceeds your tax liability in the year of installation, the unused portion can be carried forward to future tax years.
To claim the credit, file IRS Form 5695 (Residential Energy Credits) with your federal tax return for the year the battery system is placed in service. Note that this credit applies to the battery storage component specifically — the federal residential solar panel tax credit (Section 25D) has expired as of December 31, 2025, and is no longer available for new solar panel installations. Always consult a qualified tax professional to confirm your eligibility and maximize your benefit.
Arizona Public Service (APS) offers the Storage Rewards Pilot program, which pays residential battery storage owners for contributing stored energy back to the grid during high-demand periods. Enrolled homeowners earn approximately $110 per average kilowatt of battery output released during the event season, which runs from May 1 through October 31. APS may call up to 60 discharge events per season, each lasting one to four hours. A typical 13.5 kWh battery with 6 kW of output capacity can earn approximately $660 per season.
This program replaces the original APS Residential Battery Pilot, which offered an upfront rebate of up to $3,750 and is now closed to new applicants. The Storage Rewards Pilot is an ongoing, performance-based program open for enrollment. The pilot is designed to run for five years with up to 5,000 participants, so enrollment capacity may be limited. Participants must have a qualifying battery storage system installed at their APS-served home.
To enroll, contact APS directly through their website or customer service line. This program is separate from the APS Cool Rewards smart thermostat program and is specifically designed for battery storage owners. Because APS operates under a net billing structure (not net metering), pairing a battery with solar and enrolling in Storage Rewards is one of the most effective ways for residents of Gilbert to maximize the financial return on a solar-plus-storage investment in the APS service territory.
Arizona has transitioned from traditional net metering to net billing across its major utilities. Under net billing, when your solar panels produce more electricity than your home uses, the excess is exported to the grid and you receive a bill credit — but at a rate below the retail electricity rate. The specific export rate varies by utility: APS credits approximately $0.0617/kWh (locked in for 10 years at the time of interconnection); SRP credits approximately $0.028/kWh on time-of-use net billing plans (all legacy net metering plans were retired in November 2025).
A key benefit for APS customers is the 10-year rate lock: the export rate in effect when your system interconnects is guaranteed for 10 years, even if rates decrease for future customers. The Arizona Corporation Commission has established a schedule where export rates may decrease by up to 10% each year for new customers, meaning the sooner you go solar, the higher your locked-in export rate will be. APS also charges a Grid Access Fee of approximately $0.93 per kW of solar array capacity per month.
Because net billing export rates are significantly below retail electricity rates, the financial strategy for Gilbert solar owners has shifted toward self-consumption — using as much of your solar production directly in your home as possible — and pairing solar with battery storage to store excess energy for use during evening peak hours rather than exporting it at low rates. Always verify the current export rate with your specific utility before making installation decisions, as rates are updated periodically.
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 QuoteGilbert 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, AZ enjoys over 300 sunny days annually, with intense summer sun and mild winters creating strong year-round solar production — making it one of the best climates for solar energy.
Solar Production in Gilbert 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 Gilbert
We’ve mapped thousands of solar installations across Gilbert, AZ so you can see just how many of your neighbors have made the switch. Explore the heatmap below to discover which communities and neighborhoods are leading the way in clean energy adoption!
Leasing Solar Panels
If paying the full cost of a solar system upfront isn’t the right fit for your situation, Palmetto offers a solar lease through our LightReach program — available to Gilbert homeowners served by SRP, APS, and several other Arizona utilities. With a lease, you pay a fixed monthly amount (for example, $109/month for a medium-sized home) while Palmetto owns and maintains the system. There are no upfront costs, no repair bills, and no maintenance responsibilities on your end.
One practical benefit of leasing vs. a cash purchase is that Palmetto — as the system owner — qualifies for the commercial Investment Tax Credit, and those savings are passed through to you in the form of lower monthly payments. You also get a 90% production guarantee, meaning if your system underproduces, Palmetto makes up the difference. To learn more about how leasing compares to buying, visit our solar buy or lease guide.
It’s worth noting that a solar lease differs from a Power Purchase Agreement (PPA). With a lease, you pay a fixed monthly rate regardless of how much energy your panels produce. With a PPA, you pay per kilowatt-hour of electricity generated — so your bill fluctuates with the seasons. In Arizona, where summers drive high production, a PPA would mean higher solar bills in summer and lower ones in winter. Currently, Palmetto offers a lease (not a PPA) to Gilbert homeowners, giving you predictable, consistent monthly payments from day one.
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!
Explore LightReach LeasingFrequently Asked Questions
Yes, solar makes strong sense in Gilbert. With 6.5 peak sun hours per day and over 300 sunny days annually, Gilbert is one of the best places in the country to generate solar energy. Arizona electricity rates have risen nearly 20% since 2021, and homeowners here can save an average of $65,000 over 25 years.
If upfront cost is a concern, Palmetto’s LightReach lease program removes that barrier entirely — Gilbert homeowners can go solar with no money down and start saving from day one, with payments starting as low as $109/month.
Gilbert is primarily served by Salt River Project (SRP), which uses a net billing program — not traditional net metering. Under SRP’s net billing, excess solar energy exported to the grid earns a credit between $0.02–$0.06/kWh depending on the season and your chosen TOU rate plan (E13, E14, E15, or E27). Credits carry over indefinitely with no annual true-up.
Because export credits are below the retail electricity rate, Gilbert solar owners benefit most by maximizing self-consumption — using solar energy directly in your home — or pairing solar with battery storage to reduce grid dependence during evening peak hours.
Yes, solar panels can increase your home value in Gilbert. Research from Zillow shows that homes with solar panels sell for approximately 4.1% more than comparable homes without them. For a $450,000 home in Gilbert, that could mean roughly $18,000 in added value.
Importantly, Arizona’s Solar Energy Property Tax Exemption means that added home value won’t raise your property tax bill — making solar an appealing long-term investment for Gilbert homeowners looking to build equity.
With Palmetto’s LightReach lease, Gilbert homeowners can go solar for a low fixed monthly payment starting at $109/month — with no upfront cost. Palmetto owns and maintains the system, and savings begin as soon as your panels are active.
If you prefer to own your system outright, a cash purchase for an average Gilbert home runs approximately $23,173 after Arizona’s $1,000 state tax credit. Note that the federal 30% residential solar tax credit is no longer available following the Big Beautiful Bill. Use the calculator above for a personalized estimate.
For many Gilbert homeowners, solar can be financially worthwhile — especially with a lease option. With Palmetto’s LightReach program, there is no upfront investment required. Your fixed monthly lease payment is typically less than your current electricity bill, meaning you can start saving from day one.
For those who prefer to own, an average Gilbert home system costs approximately $23,173 after Arizona’s $1,000 state tax credit, with an estimated $65,000 in savings over 25 years — a meaningful return given the area’s rising electricity rates and 6.5 peak sun hours daily.
We believe Palmetto Solar is the best choice for Gilbert homeowners. As a national company with deep local roots, we’ve completed 4,982 installations across Arizona since 2020 — giving us real experience with local utilities like SRP and the unique conditions of the Gilbert market.
We offer some of the most flexible financing options in the industry, including our LightReach lease program starting at just $109/month with no upfront cost. Our trusted install network, 90% production guarantee, and ongoing maintenance support make going solar straightforward and worry-free.
With Palmetto’s LightReach lease, Gilbert homeowners can go solar for no upfront cost. One simple monthly payment covers the system, installation, monitoring, maintenance, and a 90% Production Guarantee. For a typical 8.50 kW system, the estimated monthly payment is approximately $109/month — often less than your current electricity bill.
Because Palmetto owns the system, it qualifies for the commercial Investment Tax Credit (ITC), and those savings are passed directly to you through lower monthly payments — a key advantage over cash purchases, where the residential ITC is no longer available.