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 Panel Financing Options in Arizona: Loans vs. Leases vs. PPAs
Explore Your Solar Financing Options
At JIT Solar, we understand that going solar is not just about energy—it’s about smart financial planning. That’s why we help Arizona homeowners compare financing methods—solar loans, leases, and power purchase agreements (PPAs)—so you can find the best path for your budget and goals.
Arizona’s sunny climate (over 300 sunny days a year!) sets the perfect stage for solar savings. Let’s walk through your options:
1. Solar Loans: Own Your System, Maximize Savings
- How it works: You borrow funds to purchase your solar system outright—either through a solar-specific loan, home equity loan, or personal loan. You’re responsible for repaying principal and interest over time.
- Benefits: You own the system, making you eligible for the 30% Federal Residential Clean Energy Tax Credit—which, as of now, expires December 31, 2025. You also collect long-term energy savings and potential increases in home value.
- Considerations: Requires good credit for favorable interest rates and an upfront loan. Terms typically range from 10–25 years.
Important Update: Federal Tax Credit Ends 2025Starting January 1, 2026, the 30% federal solar tax credit will no longer be available for residential systems installed by homeowners—even with financing. If you want to take advantage of it, your system must be fully installed and commissioned by December 31, 2025
2. Solar Leases: Worry-Free, Fixed Monthly Payment
- How it works: A solar provider installs and owns the system on your roof. You pay a fixed monthly leasing fee for using the energy.
- Benefits: You pay little to no money upfront and the provider handles maintenance. It’s a hassle‑free setup.
- Considerations: You do not own the system—so you miss out on tax credits and equity gains. Plus, contract terms may limit customizations.
3. Power Purchase Agreements (PPAs): Pay for Solar Energy Only
- How it works: A solar company installs panels and you only pay for the clean energy produced, at an agreed-upon rate (usually lower than utility prices).
- Benefits: Very low upfront cost and often immediate savings on energy bills.
Considerations: You never own the panels and can’t claim tax credits. The financial benefits depend on long-term electricity use and agreement terms..
4. PACE Financing: Solar Without Taking on a Traditional Loan
- How it works: PACE (Property Assessed Clean Energy) financing allows you to pay for solar upgrades via your property tax bill over 5–35 years. The loan is tied to the property—not you personally—and transfers if you sell your home.
- Benefits: Low-to-no upfront cost, often accessible even with less-than-perfect credit.
- Considerations: Availability in Arizona is limited and sales disclosures vary. It may complicate mortgage or home sale processes.
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 |
Comparing Your Options Quickly
| Financing Type | Upfront Cost | Ownership | Maintenance | Eligible for Tax Credits |
|---|---|---|---|---|
| Solar Loan | Low–High | Homeowner | You | Yes |
| Solar Lease | None | Third-party | Provider | No |
| PPA | None | Third-party | Provider | No |
| PACE | None | Homeowner | You | Depends (check program) |
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
Next Steps with JIT Solar
- Contact us for a personalized estimate. We’ll review your energy usage, roof size, and budget.
- Compare financing strategies. We’ll model scenarios—for example, solar loan vs. lease—so you can see which maximizes your savings.
- Factor in incentives. Let’s stack your SRP rebates, Arizona tax credits, and federal incentives for optimal impact.
- Move quickly. With the federal tax credit deadline approaching fast, early planning matters.