Solar Panel Financing Options in Arizona: Loans vs. Leases vs. PPAs
Solar energy is more affordable than ever—but figuring out how to pay for it can be confusing. Whether you’re looking to own your system outright or avoid upfront costs, there’s a solar financing option that can fit your budget and goals.
At JIT Solar, we help Arizona homeowners compare solar loans, leases, and power purchase agreements (PPAs) to choose the best path forward. Here’s a breakdown of the most common financing options and how they compare.
Making Solar Affordable in Arizona
Thanks to decreasing equipment costs and generous solar incentives, installing solar panels in Arizona is a smart long-term investment. But the upfront cost can still be a hurdle for many homeowners.
That’s where flexible financing comes in. From ownership options with tax perks to low-commitment lease programs, solar can fit nearly any budget.
Solar Loans: Own Your System and Maximize Savings
Solar loans allow you to finance the purchase of your solar energy system and pay it off over time—just like a car loan. You own the system, which means you’re eligible for tax incentives like the 30% federal solar tax credit (ITC) and Arizona’s $1,000 state credit.
Key Benefits:
- Full ownership
- Eligible for federal and state tax incentives
- May increase your home’s value
- Pay off early with no penalty (depending on lender)
Considerations:
- Monthly loan payments
- Credit check required
- May include interest charges
💡 JIT Solar works with a network of trusted lenders offering flexible terms and competitive rates for Arizona homeowners.
Solar Leases: No Upfront Cost, No Ownership
With a solar lease, you don’t own the system—you simply pay a fixed monthly fee to use the solar panels on your home. The leasing company installs and maintains the system, but you won’t benefit from tax incentives or long-term equity.
Key Benefits:
- No upfront cost
- Predictable monthly payments
- Maintenance included
Considerations:
- You don’t own the system
- No tax credit eligibility
- May affect home sale negotiations
This is a good option for homeowners who want to go solar with minimal commitment and don’t qualify for loans.
Power Purchase Agreements (PPAs): Pay for the Power, Not the Panels
A PPA is similar to a lease, but instead of paying a fixed fee, you only pay for the electricity the system generates—usually at a lower rate than your utility. Like leases, the provider owns and maintains the system.
Key Benefits:
- No upfront cost
- Only pay for what you use
- Immediate utility bill savings
Considerations:
- No system ownership
- No tax incentives
- Long-term contract with rate escalators
PPAs are less common in Arizona than in some other states, but they may still be available depending on your location and provider.
Side-by-Side Comparison: Loans vs. Leases vs. PPAs
| Feature | Solar Loan | Lease | PPA |
| Ownership | Yes | No | No |
| Upfront Cost | Low to Medium | None | None |
| Tax Incentives | Yes | No | No |
| Maintenance | You | Included | Included |
| Monthly Payment Type | Loan | Fixed | Per kWh |
Which Solar Financing Option Is Best for You?
The right solar financing option depends on your financial goals, credit profile, and how long you plan to stay in your home:
- Choose a solar loan if you want the most long-term savings and qualify for tax credits.
- Choose a lease if you want no upfront cost and prefer a hands-off approach.
- Choose a PPA if you want to lower your utility bill without owning the system.
Still unsure? That’s what we’re here for.
Get Personalized Solar Financing Advice
At JIT Solar, we’ve helped hundreds of Arizona homeowners go solar affordably. We’ll walk you through your financing options, estimate your monthly payments, and find the best deal for your needs.
Request your free financing consultation