Many Arizona homeowners are shocked when they discover exactly how much money large solar leasing companies make from every installation — often without the homeowner ever realizing it.
It all comes down to the incentives that still exist in 2026. While the 30% federal residential solar tax credit for homeowner-owned systems ended on December 31, 2025, leasing companies and other third-party owners can still claim the commercial Investment Tax Credit (ITC) under Section 48E. In many cases, they can also stack on a 10% domestic content bonus if the equipment meets U.S.-made requirements. These tax breaks make solar projects extremely profitable for the companies — sometimes turning a single installation into a windfall that homeowners never see.
The result? When you lease, the company owns the system and captures the biggest financial perks. You might enjoy lower utility bills, but a huge chunk of the long-term value stays with them. When you own the system outright, those incentives no longer flow directly to you federally — but you gain full control, no escalating lease payments, and the ability to stack Arizona’s state tax credit (up to $1,000) plus massive long-term savings from free electricity after payoff.
Here’s the truth most big solar companies hope you never fully understand — and how smart Arizona homeowners are flipping the script.
Why Leasing Often Leaves Money on the Table for Homeowners
Leasing sounds simple and risk-free at first glance: little to no money down, immediate bill savings, and “we handle everything.” But here’s what the glossy ads rarely mention:
- The leasing company owns your solar panels and claims the commercial federal tax credit (still available to them in 2026).
- They also pocket depreciation benefits and any domestic content bonuses.
- Most leases include built-in annual price escalators — often 2–3% per year — so your monthly “solar payment” climbs steadily while utility rates do the same.
- At the end of the 20- or 25-year term, you may have to buy the system at fair-market value, extend the lease, or have the panels removed (at your expense).
In short, you get some savings… but the company gets the lion’s share of the incentives and equity.
Why Owning Your Solar System Delivers Bigger, Longer-Lasting Wins in Arizona
Owning your solar system puts you in the driver’s seat — especially in a state blessed with more than 300 sunny days a year and some of the highest solar potential in the country.
Here’s what ownership gives you that leasing can’t match:
- Full control and no more escalating payments — Once your system is paid off (often in 7–12 years with financing), the electricity it produces is essentially free for the remaining 15–20+ years of its life.
- Arizona state tax credit — You can still claim up to $1,000 off your Arizona income taxes for installing solar.
- Increased home value — Studies consistently show owned solar systems add roughly 4% to a home’s resale value — money that stays with you, not a leasing company.
- Protection from rising utility rates — Arizona utilities use net billing, so every kWh your panels produce offsets high-cost grid power. Owning means you capture 100% of that benefit long-term.
- Freedom to pair solar with roofing — No lease restrictions when it’s time to replace your roof.
- No surprise end-of-lease decisions — You own the asset outright and can sell the home with the system included, often recouping your investment many times over.
Arizona’s abundant sunshine makes these advantages even more powerful. A well-designed system can offset 70–100% of a typical household’s electric bill, shielding you from future rate hikes that have climbed steadily in recent years.
Leasing vs. Owning: A Side-by-Side Reality Check
| Aspect | Leasing | Owning (Cash, Loan, or Solar Financing) |
| Upfront Cost | Usually $0–low | Higher, but financing options available |
| Tax Incentives | Company claims commercial ITC + bonuses | You claim Arizona state credit (up to $1,000) |
| Monthly Payments | Fixed but escalates 2–3% yearly | Fixed loan payments (often lower long-term) |
| Long-Term Savings | Moderate — company keeps most upside | Highest — full savings after payoff |
| Home Value & Equity | Minimal boost | Significant increase (≈4%) |
| Contract Length | 20–25 years with restrictions | You own it forever |
| End of Term | Buy, renew, or remove panels | System is yours — zero payments |
Real-world math shows ownership typically outperforms leasing by tens of thousands of dollars over 20–25 years for most Arizona homes.
The Smartest Move: Combine Solar with Your Roof Replacement
One of the most overlooked opportunities in Arizona is timing solar with your roof. Removing and reinstalling solar panels during a future roof replacement can cost $5,000–$15,000 extra. At True Power Solar and Roofing, we handle both projects together so you avoid that double expense entirely.
Benefits of a combined solar + roofing project include:
- A roof engineered to support decades of solar production
- One seamless installation process (less disruption to your home)
- Better aesthetics and curb appeal
- Maximum long-term value and efficiency
Whether your roof is already due for replacement or simply needs inspection before solar goes up, addressing both at once is one of the highest-ROI decisions an Arizona homeowner can make.
Make the Incentives Work for You — Not the Big Companies
Large solar leasing firms have mastered the tax-credit game for years. The good news? You don’t have to hand them the profits anymore. By owning your system, you capture the Arizona state credit, eliminate escalating lease payments, build real home equity, and enjoy true energy independence.
If you live in Gilbert, Chandler, Mesa, Tempe, Queen Creek, Scottsdale, or anywhere across the Valley, understanding the difference between leasing and owning has never been more important — especially now in 2026 with the federal residential credit off the table for owners.
A custom-designed solar system can slash your electric bills, protect you from rate increases, and deliver decades of savings. But only if you structure the deal correctly from day one.
Jason, owner of True Power Solar and Roofing, works directly with Arizona families to cut through the confusion. He’ll show you exactly how ownership stacks up against leasing for your specific home, roof condition, and energy usage — with transparent numbers and no pressure.
Ready to keep more of the savings for yourself?
Contact True Power Solar and Roofing today:
- Call (480) 925-9995
- Email info@truepoweraz.com
- Visit https://truepoweraz.com/
Don’t let another year of high electric bills go by. Discover how solar ownership can put real money back in your pocket — and give you peace of mind for decades to come. Your Arizona sunshine is waiting to work harder for you.
