Mesa, AZ Solar Panels
In This Guide
Solar Power in Mesa
Mesa, AZ averages more than 300 sunny days a year — and with Arizona electricity prices up 22% since 2020, more local homeowners are turning to solar to take control of their energy costs.
Whether you’re just starting to explore or ready to move forward, this guide covers everything you need to know about solar panels for your home — in plain language, with no fluff.
How Much Do Solar Panels Cost in Mesa, AZ?
Using real installation data from Mesa and nearby communities like Gilbert, Chandler, and Tempe, 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
- Mesa gets 300+ sunny days a year — making it one of the best places in the country to generate your own electricity with solar panels.
- Arizona electricity rates have risen nearly 20% since 2021 — solar gives Mesa homeowners a way to take control of their monthly energy costs.
- Mesa homeowners can save an average of $65,000 over 25 years with solar, and Arizona still offers a state tax credit, sales tax exemption, and property tax exemption.
Mesa Electricity Prices
Electricity costs in Mesa, AZ have been climbing steadily — and understanding what you’re paying is the first step toward making a smarter energy decision.
Arizona electricity rates rose from 12.5 cents per kWh in 2021 to 14.9 cents per kWh in 2024 — nearly a 20% increase in just three years. That adds up quickly for Mesa homeowners running air conditioning through long, hot summers.
Solar gives Mesa homeowners a way to generate their own electricity rather than buying it at rising utility rates. By producing power from the sun, you become less dependent on what the grid charges — month after month.
Over the long term, solar acts as a hedge against future rate increases. In a city like Mesa, where sunshine is abundant and electricity demand is high, locking in lower energy costs today can mean meaningful savings for years to come.
Price of Energy: Arizona vs National Average
Mesa Area Utility Providers
Mesa residents are primarily served by two utility companies: APS and SRP. Based on 2023 data — the most recent available — APS charges 15.3¢ per kWh and SRP charges 12.5¢ per kWh.
In 2023, the Arizona state average was 14.0¢ per kWh, and the national average was 16.0¢ per kWh. APS rates sit above the state average, while SRP remains notably below both state and national benchmarks.
Understanding your utility’s rate matters because every kWh your solar panels produce is one you don’t buy from APS or SRP. The higher your rate, the faster solar can offset your monthly electricity bill.
Mesa Utilities Electricity Rates
Arizona Solar Incentives
Mesa homeowners have access to several solar incentives in Arizona that can meaningfully reduce the upfront and long-term costs of solar installation.
Arizona offers a state income tax credit, a sales tax exemption on solar equipment, and a property tax exemption — meaning your home’s increased value from solar won’t raise your property tax bill.
While the federal residential solar tax credit is no longer available, state and local incentives remain. Homeowners who lease through Palmetto’s LightReach program benefit from commercial tax credit savings passed through as lower monthly 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 Mesa 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 Mesa (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 Mesa 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 Mesa 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 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 and 300+ days of sunshine make it ideal for solar. High temperatures can slightly reduce panel efficiency, but overall production remains 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 mapped solar installations across Mesa to show just how many of your neighbors have already made the switch. Explore the heatmap below to see solar adoption in your neighborhood and community — you might be surprised by how many homes are already powered by the sun!
Leasing Solar Panels
If paying the full cost of solar upfront isn’t the right fit for you, Palmetto offers a solar lease through its LightReach program — available to Mesa homeowners served by APS, SRP, and several other Arizona utilities. With a lease, you pay a fixed monthly amount (for example, $109/month for a typical home) rather than buying the system outright.
Leasing has a few meaningful advantages over a cash purchase. There’s no large upfront investment, and Palmetto owns and maintains the system — so if something needs attention, that’s on us, not you. You also get a 90% production guarantee, meaning you’re protected if the system underperforms. With a cash purchase, maintenance, repairs, and performance monitoring all fall to the homeowner.
It’s worth noting that a solar lease is different from a Power Purchase Agreement (PPA). With a lease, you pay a fixed monthly rate regardless of how much energy is produced. A PPA charges you per kilowatt-hour generated, so your bill can vary by season. In Arizona, only the lease option is currently available through Palmetto. Want to understand the full picture before deciding? Compare buying vs. leasing solar to see what makes the most sense for your home.
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 Mesa. With 300+ sunny days per year, 6.5 peak sun hours daily, and Arizona electricity rates up nearly 20% since 2021, Mesa homeowners are well-positioned to reduce their energy costs with solar. A typical system can save an average of $65,000 over 25 years.
If upfront cost is a concern, Palmetto’s LightReach solar lease removes that barrier entirely — Mesa homeowners can go solar with no money down and start saving from day one, with payments starting as low as $109/month.
Mesa is served primarily by APS and SRP, and neither utility offers traditional net metering. Both have transitioned to net billing, meaning excess solar energy exported to the grid is credited at a rate below the retail electricity rate — approximately $0.069/kWh for APS and $0.02–$0.06/kWh for SRP, depending on your rate plan.
APS customers benefit from a 10-year rate lock on their export credit, so going solar sooner means locking in a higher rate. Because export credits are below retail rates, Mesa homeowners typically maximize savings by using solar energy directly in the home or pairing panels with battery storage.
Yes, solar panels can increase your home’s 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 home — close to Mesa’s median — that’s roughly $16,400 in added value.
Arizona also offers a Solar Energy Property Tax Exemption, meaning the added home value from solar won’t raise your property tax bill. This makes solar a particularly smart investment for Mesa homeowners looking to build long-term equity.
The most affordable way for Mesa homeowners to go solar is through Palmetto’s LightReach lease — with no upfront cost and a low fixed monthly payment starting around $82–$144/month depending on home size. Palmetto owns and maintains the system, so there’s nothing out of pocket to get started.
For homeowners who prefer to own their system outright, a cash purchase typically runs $17,745–$30,085 after Arizona’s state incentives. 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 Mesa homeowners, solar can make strong financial sense — especially with a lease option. With Palmetto’s LightReach lease, there’s no upfront cost, and your fixed monthly payment is typically lower than what you’re currently paying for electricity. That means day-one savings the moment your panels are active.
For those who purchase outright, a typical Mesa system pays for itself in about 11 years and can save an average of $65,000 over 25 years — a meaningful return given that Arizona electricity rates have risen nearly 20% since 2021.
We believe Palmetto Solar is the best choice for Mesa homeowners. As a national company with deep local roots, we’ve completed 4,982 installations across Arizona since 2020 — so we understand the local climate, utilities, and what it takes to do the job right.
We offer some of the industry’s most flexible financing options, including our LightReach lease with no upfront cost, plus a trusted install network and ongoing support after your system is live.
With Palmetto’s LightReach lease, Mesa homeowners pay one simple monthly payment that covers everything — the system, installation, monitoring, maintenance, and a 90% Production Guarantee. There is no upfront cost. For a typical 8.50 kW system, the estimated monthly payment is approximately $109/month.
Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower monthly payments. Since your lease payment is typically less than your current electricity bill, most Mesa homeowners start saving from day one.