What Should I Know About Solar Leases in Arizona?

Solar leases are common in Arizona’s East Valley, like Mesa and Chandler, due to abundant sunshine and energy incentives.

What Is a Solar Lease?

A solar lease allows you to use solar panels without owning them. You pay a monthly fee to the solar company, which owns and maintains the system. In Arizona, this can reduce electric bills, but it comes with considerations for homebuyers.

Financial Implications

Leases often range from $50 to $150 monthly, depending on system size. While you save on utility costs, you don’t own the panels, so you miss out on federal tax credits (26% in 2025). Review the lease term—typically 20 years—and check for escalator clauses that increase payments over time.

Impact on Home Buying

Solar leases can complicate home purchases. Some buyers hesitate due to added payments, affecting your home’s resale value. Lenders may require you to qualify with the lease payment as part of your debt-to-income ratio. In Mesa, where solar is popular, ensure the lease is transferable or consider paying it off before selling.

Maintenance and Repairs

The solar company handles maintenance, but response times vary. Check the lease for repair terms and warranties. Arizona’s dust storms and heat can strain systems, so confirm the provider’s reliability. A poorly maintained system could lead to unexpected costs.

Local Regulations and Incentives

Arizona’s net metering policies allow you to sell excess energy back to the grid, but rates vary by utility. Research local incentives, like SRP rebates, which may apply even with a lease.