How To Pay for Solar Panels in Arizona

Arizona is among the top five states for generating solar energy due to its abundant sunshine, averaging 300 sunny days annually. This allows for ample electricity production, potentially producing surplus energy that can be sold back to the grid. This reduces your carbon footprint and results in significant long-term savings on your energy bills.

Electricity costs are rising, with an average monthly bill of approximately $235 in Arizona. Using solar panels to generate electricity can significantly reduce or even eliminate this monthly expense. Moreover, specific rebates and incentives are offered at the state and federal levels to promote the adoption of solar power. This blog post highlights payment options that can help make your transition to solar power seamless.

Arizona Solar Panel Incentives

Residential solar panels are now more affordable than ever, making them a great investment for homeowners. Even so, integrating a solar system into your budget can still present challenges. The Residential Clean Energy Credit program offers a substantial 30% federal tax credit, making solar panels more affordable in Arizona. 

Arizona’s solar tax credit covers 25% of your total solar system cost, with a maximum credit limit of $1,000. Eligible homeowners can claim this credit for a maximum of five tax years, with a credit cap of $1,000 available. And like the federal solar tax credit, a state tax liability must be met to be eligible for Arizona’s solar tax credit.

Solar Payment Options in Arizona

There are a few ways to look at the payment options available for buying or leasing solar panels in Arizona. 

When To Buy Solar Panels

Buying solar panels in cash is smart if you have the funds available upfront. Although the panels can be expensive to install, a full return on the investment takes between seven and ten years. However, when you decide to buy solar panels, you’re making a substantial financial commitment upfront, which includes covering installation expenses and related costs.

You can also take out a loan to finance your solar panels. This can be a home equity loan, home equity line of credit (HELOC), or a solar-specific loan that is secured by your panels themselves. Financing is a good option if you cannot pay the full cost of your system upfront but would still like the benefits of owning your solar system.

When To Lease Solar Panels

On the other hand, you can choose to lease solar panels, which often requires little or no upfront payment. Leasing means you won’t have to worry about paying for the solar equipment and installation costs. Instead, a third-party provider covers these expenses. In return, they own the solar panels and typically offer a fixed rate for their electricity. 

Leasing is ideal for those looking to begin their journey into solar power without a large upfront investment. It also saves you from dealing with the usual maintenance and repair costs that come with owning solar panels, so you can start saving money right away.

Are Solar Panels Worth It in Arizona?

Arizona’s abundant sunshine makes it an ideal location for implementing solar energy, and the state has made significant strides in promoting sustainability and renewable energy adoption with numerous incentives. If you’re thinking about going solar in the Grand Canyon State, contact Solar Optimum today. We serve residents all across Maricopa County, including places like Buckeye, Carefree, Cave Creek, El Mirage, Goodyear, Litchfield Park, Paradise Valley, Phoenix, Surprise, Wickenburg, and Youngtown.