Arizona Solar Financing: Everything You Need to Know

Arizona is fifth in the nation in solar energy use, with solar systems powering almost 790,000 homes. With the average solar panels for a home costing upwards of $25,000, the costs may be a lot to digest. However, Arizona solar financing is cheaper than you think, with plenty of plans to fit your budget.

There are plenty of solar system financing options, including taking out a loan, considering a solar lease, or paying cash. Once you figure out how you’ll pay for your solar projects, you’re on your way to creating green energy!

Here’s more about Arizona solar financing.


There are several different types of loans to consider to improve energy efficiency and generate clean energy for your home. Many people choose loans to pay for large projects, and your home’s solar system is no exception. While you’ll pay interest on a loan, solar saves you money over time.

Personal Loans

You can take a personal loan through your bank or credit union to pay for your renewable energy project. Loans are subject to your credit score, and the time it will take for your solar financing project. If you think you might have bad credit, work to pay down some debt and minimize your debt-to-income ratio.

A personal loan may have a higher interest rate, especially if it’s unsecured. A secured loan, where there is collateral, will have a lower interest rate. You can typically get a personal loan from one to five years.

It’s best to get a fixed interest rate over the life of the loan, so you’ll know exactly how much to budget for your renewable energy project.

Line of Credit

Banks and credit unions offer lines of credit to homeowners for significant purchases. Think of it this way: the bank is like a credit card that you can keep returning to get more money as you see fit. You can avoid paying higher interest rates.

However, with interest rates fluctuating, you could have a more challenging time paying back the loan over time.

Home Equity Loan

If the value of your home is higher than your mortgage debt, you can borrow on your home’s equity. You can pay back the loan for anywhere from 10 to 20 years to 30 years. A home equity loan also comes with a fixed interest rate.

You can also pay off a home equity loan early at no penalty.

Loans also come with beneficial tax credits. Because you own the solar system, you qualify! It’s best to talk with a tax professional about saving money on your solar system.

Company Backed Loans

Some solar companies offer their own financing options, which means you can skip the bank or the credit union and finance directly through the solar company. You get competitive rates too! The solar company wants your business, so they will make it worth your while to finance through their company.

There are plenty of benefits to a solar loan program, including boosting the value of your home. If you plan to sell your home, many future homeowners will avoid an electric bill when moving in! Solar panels could add up to $20,000 to the value of a home.


Leasing a solar energy system allows you to get all the benefits of green energy without much hassle.

First, there are no upfront costs. Keep all of the startup money in your bank account! It won’t cost you anything to install solar panels on your home through a solar lease program.

Moreover, there are no maintenance fees for your solar project. Anytime something breaks or no longer works, the company that installed your solar energy system will fix it at no cost. Solar energy systems come with complicated inner workings, costs you avoid when you lease a clean energy solar system.

Even if you lease, you can still take advantage of net metering, which means you can sell back unused power your solar energy system creates to the power company. In many cases, you will avoid paying an electricity bill. And with no upfront costs, you’ll save money immediately!

purchase power agreement is similar to a lease where a third-party company offers solar and owns, installs, and operates the entire system. As a homeowner, you purchase the solar energy created from the solar panel system, which is typically lower than the electric company.

A power purchase agreement can last 20 years or more, and the developer of the solar system remains in complete control of maintenance and upkeep.

There’s also limited risk when you lease a solar system. If old technology needs upgrading, you won’t bear the cost.

However, there are drawbacks. There are no tax credits for people who lease a solar power system. Some solar power companies may charge a small fee as costs increase.

In addition, if your home uses more electricity than you generate, you may still have an electricity bill.

And should you choose to sell your home, it’s one more thing that ties up the process. A new homeowner would have to meet the company’s requirements that offer the solar lease program.

Paying Cash

Paying cash for your solar power system is the easiest way, considering you’ll skip interest payments and other solar financing options. As they say, ‘cash is king.’

And when you pay cash, you’ll also get valuable tax credits. The federal government will give you a 26-percent tax credit on your solar project. There are also additional tax credits in Arizona.

Update: In August 2022, the solar tax credit was increased to 30% and extended through 2032.

Cash maximizes your energy efficiency while saving you the most money. You’ll start saving money on your monthly electric bill immediately.

Arizona Solar Financing

With Arizona solar financing, you can reduce your carbon footprint by harnessing the sun’s power. You can pay for your solar project through a loan, lease, or cash.

Exploring your solar financing options is easy, and there are plenty of ways to pay for your solar system that will fit your budget. Contact us today and let us help you get started with a clean energy system at your home!

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