Arizona Solar Panel Lease

The state s largest utility arizona public service aps offers homeowners an incentive of 0 60 per installed watt of dc capacity for example 2 400 for a 4 kilowatt system for residential grid tied solar systems and 1 75 per installed watt of dc capacity for example 7 000 for a 4 kilowatt system for commercial grid tied solar systems.

Arizona solar panel lease.

With a solar power purchase agreement you pay for the electricity the system generates and you don t have the hassle of owning a solar system. You simply agree to pay the owner sunrun each month for the electricity that the panels generate. Sunrun offers solar financing for arizona homeowners that makes solar power easy and affordable. It s a new kind of home solar.

Even though the panels are located on your roof you don t own them. At the beginning you do not have to pay any money out of your pocket. The main practical distinction between buying and leasing a solar pv system is in ownership. This arrangement typically results in the homeowner paying much less per kwh by paying the entire contract upfront sometimes as little as 50 of the amount per kwh you d pay over the course of 20 years of monthly payments.

At that time the homeowner has to make lease or mortgage payments to the solar panel company that records a document such as a ucc 1 financing statement. Thanks to the solar equipment sales tax exemption you are free from the burden. You should own the solar panels. Acquiring a solar panel system on lease comes with its own set of pros and cons.

If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan. The residential arizona solar tax credit reimburses you 25 percent of the cost of your solar panels up to 1 000 right off of your personal income tax in the year you install the system. Leased panels don t add value to a home resale because they are not part of the home. Service plans don t serve you though leasing companies tout their service plans.

We buy and maintain your panels you pay for solar electricity for your home. If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system. Leasing solar panels in phoenix arizona. Anyone buying that home will have to qualify to take over the lease or the family selling the home could have.

One other option offered by some arizona solar companies is a prepaid lease. Residential arizona solar tax credit. At the end of the lease the solar company could remove the system and your savings along with it. When solar panels are attached to a home the solar panels become fixtures i e part of the home.