As energy costs continue to rise and environmental concerns become more urgent, businesses in Arizona are increasingly turning to solar energy. With long, sunny days and generous incentives, Arizona is one of the most favorable states for solar investments. However, the upfront cost of solar installations can be a significant hurdle. Fortunately, there are several commercial solar financing options available to businesses in Arizona, including those in Mohave County and Lake Havasu City, AZ. Choosing the right financing model can make solar energy a practical and cost-effective solution.
Why Arizona Is Prime for Commercial Solar
Arizona enjoys over 300 days of sunshine each year, making it one of the best locations in the country for solar power generation. This abundant solar resource translates into higher efficiency and faster returns on investment for commercial solar systems. Beyond the climatic advantages, Arizona offers various state-level incentives, including tax credits and performance-based incentives, which reduce the financial burden of going solar.
A commercial solar power company operating in Mohave County, AZ, or Lake Havasu City, AZ, can guide businesses through these incentives and help optimize the financial return on their investment. With an experienced commercial solar company, local businesses can navigate the complexities of the installation process, permitting, and financing.
Solar Power Purchase Agreements (PPAs)
One of the most popular financing options for commercial solar projects in Arizona is the Power Purchase Agreement (PPA). Under a PPA, a third-party developer owns, operates, and maintains the solar energy system on the customer’s property. The business then agrees to purchase the electricity generated by the system at a predetermined rate, typically lower than the local utility rate.
This option requires no upfront capital investment from the business. It also shifts maintenance responsibilities to the solar provider. The predictable energy costs and potential savings make PPAs appealing to businesses that want to reduce energy expenses without making a large capital expenditure.
PPAs are particularly beneficial in cities like Lake Havasu City, AZ, where energy demand can be high due to long summers. A commercial solar power company can assess a business’s current energy consumption and recommend the most suitable PPA structure to maximize cost savings.
Commercial Solar Leases
Another financing model frequently used by businesses is the solar lease. Similar to a PPA, a solar lease allows businesses to benefit from solar energy without owning the system. Instead of paying for the electricity produced, the business makes fixed monthly lease payments for the use of the solar equipment.
Solar leases provide the benefit of consistent monthly costs and often include system monitoring and maintenance services. They are ideal for businesses that want the benefits of solar energy but are not in a position to take on the responsibilities associated with system ownership.
A commercial solar company in Mohave County, AZ, can offer customized lease agreements that align with a business’s budget and energy needs. These agreements are typically long-term and can include performance guarantees, ensuring reliable power production throughout the lease term.
Solar Loans and Property Assessed Clean Energy (PACE)
For businesses interested in owning their solar systems, solar loans and Property Assessed Clean Energy (PACE) programs are excellent options. Solar loans allow businesses to finance the upfront cost of solar panel installation while still taking advantage of the available federal and state tax incentives.
Loan terms and interest rates can vary depending on the lender and the creditworthiness of the business. However, many commercial solar loans are structured to provide immediate monthly savings on electricity bills that exceed the loan payment, resulting in net positive cash flow from day one.
PACE financing, available in some parts of Arizona, enables businesses to finance energy improvements through a special assessment on their property tax bill. PACE loans are secured by the property itself, not the business’s credit, making them more accessible to a wider range of commercial property owners.
Working with a reputable commercial solar power company ensures that businesses understand the implications of solar loans and PACE programs. These experts can assist in structuring the financing to best align with the business’s long-term goals and financial position.
Tax Incentives and Rebates for Arizona Businesses
Arizona offers a number of incentives to encourage commercial solar adoption. One of the most significant is the federal Investment Tax Credit (ITC), which allows businesses to deduct a substantial portion of their solar installation costs from their federal taxes. As of 2026, this credit stands at 30 percent, but businesses should act quickly as future reductions may occur.
The Arizona Commercial/Industrial Solar Energy Tax Credit provides additional support. This program allows businesses to claim a credit against state income taxes for a percentage of the cost of installing a solar energy device. Combined with accelerated depreciation under the Modified Accelerated Cost-Recovery System (MACRS), these tax benefits can drastically improve the financial performance of a commercial solar investment.
In Mohave County and Lake Havasu City, AZ, businesses may also be eligible for utility rebates or local incentives that further lower the cost of installation. A knowledgeable commercial solar company can help identify and secure all available incentives, ensuring that no opportunity for savings is missed.
Conclusion
Solar power presents a transformative opportunity for businesses in Arizona to reduce energy costs, increase energy independence, and contribute to a cleaner environment. However, the success of a commercial solar project depends heavily on choosing the right financing option.
From PPAs and leases to solar loans and PACE financing, there are numerous paths to solar ownership and savings. Tax incentives at both the state and federal levels enhance the value proposition, making solar an even more attractive investment.
Partnering with a trusted commercial solar power company in Mohave County, AZ, or Lake Havasu City, AZ, provides the guidance and expertise needed to evaluate financing strategies and optimize returns. As solar technology becomes more accessible, now is the ideal time for Arizona businesses to explore their commercial solar financing options and make a sustainable investment in their future.
Need a Solar Company Near You?
Mohave Solar is a complete solar design and installation company. From swimming pool solar and solar power for your house to advanced battery storage systems, we can design a system to suit your needs. We are locally owned and operated from Lake Havasu City, Arizona. We cover all of Mohave and La Paz County. Our design and installation team has over thirty years of experience and we have thousands of satisfied customers. We take pride in our work and are licensed, bonded and insured. Contact us today to learn more about what we can do for you!