Mesa, AZ Solar Panels
In This Guide
Solar Power in Mesa
Mesa, AZ averages over 300 sunny days a year — making it one of the best places in the country to go solar. Arizona ranks 3rd in the nation for residential solar installations, and with electricity prices up 22% since 2020, it is easy to see why Mesa homeowners are taking notice.
This guide covers everything you need to know about solar panels for your home in Mesa — from how the installation process works to what you can realistically expect to save on your energy bill.
How Much Do Solar Panels Cost in Mesa, AZ?
Based on real installations across Mesa, Chandler, Gilbert, and Tempe, this calculator gives you an honest estimate of what solar costs in your area. No guesswork — just local data from homeowners like you.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Mesa averages 300+ sunny days a year, making it one of the best places in the U.S. to generate solar energy and reduce your electricity bill.
- Arizona electricity rates have risen nearly 20% since 2021 — solar gives Mesa homeowners a way to lock in more stable energy costs for 25+ years.
- Mesa homeowners can save an average of $65,000 over 25 years with solar, and Arizona offers a state tax credit, sales tax exemption, and property tax exemption to help offset costs.
Mesa Electricity Prices
Mesa homeowners are paying more for electricity every year — and the trend shows no signs of reversing.
Arizona electricity rates climbed from 12.5 cents per kWh in 2021 to 14.9 cents per kWh in 2024 — nearly a 20% increase in just three years. While still below the national average of 16.5 cents, the gap is narrowing steadily.
Solar panel installation gives Mesa homeowners a way to generate their own electricity and reduce how much they draw from the grid. Less grid dependence means less exposure to rate increases that are largely outside your control.
Solar panels typically last 25 years or more. Over that time, locking in a more stable energy cost can make a meaningful difference — especially if utility rates in Arizona continue rising at their current pace.
Price of Energy: Arizona vs National Average
Mesa Area Utility Providers
Mesa is served by two main electric utilities — APS and SRP. Based on 2023 data, APS charges about 15.3¢ per kilowatt-hour (kWh), while SRP charges around 12.5¢ per kWh, compared to a national average of 16.0¢ per kWh.
APS rates run above Arizona’s 2023 state average of 14.0¢ per kWh, partly due to infrastructure and transmission costs. SRP, a not-for-profit district, keeps rates lower — though both utilities have raised rates in recent years.
When electricity costs rise, the math on solar improves. Homeowners who generate their own power are less exposed to future rate increases — making solar a practical long-term energy decision for many Mesa households.
Mesa Utilities Electricity Rates
Arizona Solar Incentives
Mesa 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. Utility rebates are also available, though availability varies by provider — APS serves part of Mesa.
Homeowners who lease solar through Palmetto’s LightReach program benefit indirectly from the commercial Investment Tax Credit (ITC), which Palmetto applies on the backend and passes along through lower monthly lease 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 homeowners in Mesa 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 Mesa 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 Mesa 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 QuoteMesa 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.
Mesa’s sunny desert climate, with 300+ sunny days yearly, makes it ideal for solar. High temperatures can slightly reduce panel efficiency, but overall production remains consistently strong year-round.
Solar Production in Mesa 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 Mesa
We’ve mapped thousands of solar installations across Mesa, AZ so you can see just how many of your neighbors have already made the switch. Explore the heatmap below to discover which neighborhoods and communities in Mesa are leading the way in solar adoption!
Leasing Solar Panels
If you’re not ready to purchase solar panels outright, leasing is a practical alternative worth understanding. In Arizona — including Mesa — Palmetto offers a solar lease through its LightReach program. This option is available to homeowners served by APS, SRP, and several other Arizona utilities.
With a solar lease, you pay a fixed monthly amount — determined by your system’s estimated annual production — rather than paying tens of thousands of dollars upfront. Palmetto owns and maintains the system, so you’re not responsible for repairs, monitoring, or upkeep. That’s a meaningful difference from a cash purchase, where maintenance falls entirely on you. Learn more about how leasing compares to buying solar outright.
For most Mesa homeowners, the lease payment is often lower than their current electricity bill — meaning savings can start from day one. And because Palmetto owns the system, it qualifies for the commercial Investment Tax Credit (ITC), which Palmetto passes along to you through lower monthly payments. It’s a straightforward way to go solar without the upfront investment or ongoing maintenance responsibility.
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 Mesa. With over 300 sunny days per year and 6.5 peak sun hours daily, Mesa is one of the best places in the U.S. to generate solar energy. Arizona electricity rates have risen nearly 20% since 2021, and Mesa homeowners can save an estimated $65,000 over 25 years with solar.
For those concerned about upfront costs, Palmetto’s LightReach solar lease removes that barrier entirely — homeowners can go solar with no money down and start saving from day one.
Mesa does not have traditional net metering. Most Mesa homeowners are served by APS or SRP, both of which use a Net Billing (Export Credit) program instead. With APS, excess solar energy exported to the grid is credited at $0.06857/kWh, and customers are locked into that rate for 10 years. SRP credits vary by season between $0.02–$0.06/kWh depending on your chosen rate plan.
Unlike traditional net metering — which credits exports at the full retail rate — net billing credits are typically lower. Unused APS credits are trued up annually each December, while SRP credits carry over indefinitely. Understanding your utility’s export policy is an important part of evaluating your solar savings in Mesa.
Yes, solar panels can increase your home value in Mesa. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them. For a $400,000 Mesa home, that’s roughly $16,400 in added value.
Arizona also offers a solar property tax exemption, meaning the added home value from your solar system won’t increase your property tax bill — a meaningful long-term benefit for Mesa homeowners considering solar.
The most affordable way for Mesa homeowners to go solar is through Palmetto’s LightReach lease — starting as low as $82/month with no upfront cost. Palmetto owns and maintains the system, and savings can begin immediately.
For those who prefer to own their system outright, a cash purchase for an average Mesa 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 Mesa homeowners, solar is worth it financially — and with a lease, savings can start on day one. Through Palmetto’s LightReach program, your monthly lease payment is typically lower than your current electricity bill, meaning you spend less from the moment your panels turn on. There is no upfront investment required.
For those who purchase outright, Mesa homeowners can save an estimated $65,000 over 25 years, with Arizona’s rising electricity rates making that math more compelling each year.
Palmetto Solar is a top choice for Mesa homeowners. We’ve completed 4,982 installations across Arizona since 2020, backed by a strong local install network and some of the best financing options in the industry — including our LightReach lease with no upfront cost.
As a national company with a local focus, we handle everything from permitting to installation and ongoing maintenance. Mesa’s 300+ sunny days a year make solar a smart long-term investment, and we’re here to make that transition simple and straightforward.
With Palmetto’s LightReach lease, Mesa homeowners get solar with 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 in Mesa, 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 — an advantage that cash purchases no longer offer following the Big Beautiful Bill.