Mesa, AZ
In This Guide
Solar in Mesa
Mesa, Arizona homeowners are discovering the power of solar energy as Arizona ranks 3rd for residential solar installations nationwide. With electricity prices rising 22% since 2020, understanding your home solar panel options matters.
This guide covers everything Mesa residents need about solar installation, from local incentives to choosing the right system.
Key Takeaways
- Mesa receives abundant sunshine year-round making it ideal for solar panel installations with excellent energy production potential.
- Arizona offers multiple solar incentives including federal tax credits and state programs that can save thousands on installation costs.
- Rising electricity rates in Arizona make solar panels a smart investment for long-term energy cost protection and savings.
Solar Cost Calculator
Our solar cost calculator uses real installation data from Mesa neighborhoods like Eastmark, Red Mountain Ranch, and Las Sendas. Get accurate pricing estimates based on actual local projects, not generic estimates.
Select Your Home Size
Estimated Investment and Savings
Based on Palmetto Solar installations in Arizona. Current electricity rate: 14.9¢/kWh. Assumes 80% credit of retail rate.
Mesa Electricity Prices
Mesa residents face steadily climbing electricity costs, making it crucial to understand how these increases impact your monthly energy budget.
Arizona 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 help Mesa homeowners generate their own electricity, reducing dependence on the grid and providing protection against these continuing rate increases.
Over 25 years, solar systems can shield homeowners from decades of utility rate hikes while potentially eliminating most monthly electricity costs entirely.
Price of Energy: Arizona vs National Average
Mesa Area Utility Providers
Mesa residents receive electricity from two main utilities: Arizona Public Service (APS) and Salt River Project (SRP). Understanding their 2023 rates helps homeowners make informed energy decisions.
APS charged 15.3¢ per kWh while SRP charged 12.5¢ per kWh in 2023. Both rates stayed below the national average of 16.0¢, though APS exceeded Arizona’s 14.0¢ state average.
With electricity costs fluctuating annually, solar panels offer Mesa homeowners predictable energy expenses. Fixed solar production costs help budget-conscious families avoid utility rate increases over time.
Mesa Utilities Electricity Rates
Arizona Solar Incentives
Mesa residents can reduce solar costs through multiple solar incentives in Arizona at federal and state levels.
Arizona offers tax credits, property tax exemptions, and sales tax exemptions. These programs help offset installation costs and ongoing ownership expenses for homeowners.
Research current incentive programs carefully as policies change frequently. Acting promptly ensures access to available benefits.
Save an average of
$7,252
in solar rebates in Arizona
| 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 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 solar panels, inverters, batteries, and other qualifying renewable energy equipment installed on residential properties.
The financial benefit varies based on your home’s location and local tax rates, but it can save homeowners hundreds to thousands of dollars annually in property taxes. For example, if your solar system adds $20,000 to your home’s value and your local property tax rate is 1%, you would save approximately $200 per year in property taxes. To qualify, the renewable energy equipment must be installed on your primary or secondary residence in Arizona and meet state requirements for renewable energy systems.
Property owners must file Form 82054REE with their county assessor to claim this exemption. The exemption continues for as long as you own the qualifying renewable energy equipment, making it a long-term financial benefit that can significantly reduce the overall cost of your solar investment over time.
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 rate on the equipment itself or the contractor’s installation services, providing immediate savings at the time of purchase.
The financial benefit varies based on your system’s total cost, as you’ll save Arizona’s state sales tax rate on both the equipment and installation. This exemption applies to all qualifying solar panels, wind turbines, and related components, as well as professional installation services. The program is available statewide with no income restrictions or application deadlines, making it accessible to all Arizona homeowners who choose to install qualifying renewable energy systems.
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 exports, 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 cooperatives like Mohave Electric pay $0.0353 per kWh and Trico Electric pays $0.0368 per kWh. Most utilities require solar customers to switch to time-of-use rate plans, and some charge additional monthly fees.
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 size, and UNS Electric adds a $2.23 monthly distributed generation fee. The export credit rates for new customers can change annually with most utilities, though many offer 10-year rate protection once you interconnect your system.
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 abundant sunshine and high elevation create excellent solar conditions year-round. Even cities with challenging weather can achieve great solar production with proper system design.
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 Installations in Mesa
We’ve mapped every solar installation across America to show you something amazing: your Mesa neighbors are embracing clean energy! Explore this interactive map to discover which communities have made the switch to solar power.
Leasing Solar Panels
Mesa homeowners can go solar without the upfront investment through Palmetto’s leasing program. Solar leasing is available across all major utility providers in Mesa, including Arizona Public Service (APS) and Salt River Project (SRP).
With a solar lease, you pay a fixed monthly amount instead of purchasing the system outright. This eliminates the need for a large initial investment while still providing immediate electricity savings. Your leasing partner handles all maintenance and system monitoring.
Compared to paying cash upfront and managing your own maintenance, leasing offers predictable monthly costs and professional system care. Learn more about hassle-free solar through LightReach, our comprehensive solar service program.
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 excellent sense in Mesa due to abundant sunshine, rising electricity costs, and strong financial incentives. Mesa receives over 300 sunny days annually, creating ideal conditions for solar energy production.
With Arizona electricity rates increasing 19% since 2021 and federal tax credits covering 30% of installation costs, Mesa homeowners typically see 8-10 year payback periods and $65,000+ in 25-year savings.
Mesa doesn’t have traditional net metering. Instead, Arizona utilities use “net billing” systems that credit excess solar power at wholesale rates rather than full retail rates.
Arizona Public Service (APS) and Salt River Project (SRP), Mesa’s main utilities, offer export credits of $0.06857/kWh and $0.02-$0.06/kWh respectively. Both require time-of-use rates for solar customers.
Yes, solar panels increase home value in Mesa, AZ. According to Zillow research, homes with solar panels sell for approximately 4.1% more than comparable homes without solar systems.
In Mesa’s competitive real estate market, solar panels represent both immediate energy savings and long-term value. Arizona’s property tax exemption ensures you won’t pay additional taxes on the increased home value from your solar installation.
Solar costs in Mesa range from $13,121 to $21,759 after federal tax credits, depending on your home size and energy needs. A typical 8.5 kW system costs around $16,921 after the 30% federal tax credit.
Mesa homeowners save an average of $7,252 through federal and state incentives. With Arizona’s abundant sunshine and rising electricity rates, most systems pay for themselves within 8-9 years while providing decades of energy savings.
Solar is financially worth it for most Mesa homeowners. With Arizona’s abundant sunshine and rising electricity costs, solar systems typically pay for themselves within 8-9 years while providing decades of ongoing savings.
Mesa residents save an average of $65,000 over 25 years after accounting for installation costs, federal tax credits, and eliminated electricity bills. Rising utility rates make solar protection even more valuable long-term.
We are the top choice for Mesa solar installation based on our proven track record with 4,982 Arizona installations since 2020. Our national expertise combined with local focus ensures quality service for Mesa residents.
We offer competitive financing options and work with Arizona’s best installation partners. Our comprehensive approach handles everything from design to permitting, making solar accessible for Mesa homeowners across all neighborhoods.