How Commercial Solar Financing Works with Scottsdale Government Incentives

Updated: October 1, 2025

How does Scottsdale Commercial Solar Financing work? Exploring commercial solar financing and government incentives can be a transformative step for businesses looking to invest in renewable energy. The combination of attractive tax credits and specialized financing solutions significantly lowers costs and enhances the feasibility of solar projects. Let’s explore the different options that can make solar energy easy to access and good for your business. Read this complete guide with Solar Topps to learn more about Solar Financing Incentives in Scottsdale, AZ? 

At Solar Topps, we service the entire state of Arizona. While We are located in Downtown Phoenix, we are in proximity to Scottsdale, AZ. If you want to Go Solar, please Contact Us. You can also fill out a Commercial or Residential Quote. 

What is a Solar Lease?

A solar lease is another popular option where your business pays a fixed monthly fee for a solar energy system installed by a third-party provider. This fee is usually lower than your current electricity bill, and the provider handles all system upkeep. Solar leases are particularly suitable for medium-sized commercial properties, such as retail stores or multi-tenant buildings, offering the benefits of solar energy without the need to purchase the system or manage maintenance.

Advantages of Solar Leases for Businesses

Solar leases provide an affordable and efficient way for businesses to adopt renewable energy without the up-front cost of purchasing a solar system. By paying a fixed monthly fee, businesses can enjoy predictable energy expenses, potentially saving thousands of dollars over time. This model is especially advantageous for companies looking to reduce operational costs and align with sustainability goals without assuming the risks or responsibilities of system ownership.

Maintenance and Support Simplified for Scottsdale Commercial Businesses

One of the key benefits of solar leases is the inclusion of maintenance and support services. The third-party provider takes full responsibility for system upkeep, ensuring optimal performance and efficiency throughout the contract duration. This arrangement allows businesses to focus on their core operations while reaping the benefits of clean, renewable solar energy with minimal hassle.

What are Solar Loans?

A solar loan allows your business to borrow funds to purchase and install a solar energy system. As the system owner, your business benefits from tax credits and incentives, while repaying the loan over time with interest. Solar loans are ideal for businesses that prefer ownership to leverage tax benefits like the Solar Investment Tax Credit (ITC) or Solar Production Tax Credit (PTC), particularly those with strong credit profiles.

Understanding Solar Loans

Solar loans are a type of financing specifically designed to help businesses and individuals adopt solar energy systems without the need for significant upfront capital. These loans function similarly to traditional loans, where the borrower receives funds to purchase and install the solar system and repays the amount over time with interest. The primary advantage of solar loans is that they enable system ownership, allowing borrowers to take advantage of financial incentives, tax credits, and the long-term savings associated with solar energy.

Impact of Solar Loans on Scottsdale Residents

For Scottsdale residents, solar loans are an increasingly popular option for transitioning to renewable energy. Given the region’s abundant sunshine, investing in solar systems is a practical choice, leading to significant reductions in energy costs over time. Solar loans enable homeowners and businesses in Scottsdale to afford these systems without facing large upfront costs. Additionally, local incentives and federal tax benefits like the Solar Investment Tax Credit (ITC) further enhance the financial viability of solar installations. By choosing solar loans, Scottsdale residents can lower their utility expenses, enhance property values, and contribute to a sustainable energy future.

Scottsdale, Arizona Commercial Solar PPA

A Commercial Solar PPA offers several benefits for businesses:

• No Upfront Costs: The developer covers installation, equipment, and maintenance costs, allowing you to start saving on energy immediately without any initial investment.
• Long-Term Hedge Against Inflation: Fixed energy rates provide price predictability, shielding your business from the volatility of utility rates.
• Maintenance and Performance Monitoring: The developer handles all aspects of system operation and maintenance, ensuring optimal performance and efficiency.
• Sustainability and Corporate Social Responsibility: Adopting solar energy reduces your carbon footprint and aligns with corporate social responsibility goals, boosting your brand’s reputation.
• Flexibility and Scalability: PPAs can be scaled to meet your growing energy needs, making them an excellent choice for expanding businesses.
• Enhanced Property Value: Solar installations increase property value and appeal to potential buyers or tenants, offering a significant return on investment.

Quick Comparison: Which Financing Option is Right for Your Business?

	Solar Lease	Solar Loan	Power Purchase Agreement (PPA)
Upfront Cost	Minimal to no upfront cost	Varies depending on loan terms	Minimal to no upfront cost
Ownership	Retained by the leasing company	You retain ownership	Retained by the PPA provider
Eligibility	Typically requires good credit	Requires good credit and financing approval	Typically requires good credit
Tax Benefit Access	Not available to the lessee	Available to the owner	Not available to the customer

This table provides a concise breakdown of key features, helping businesses choose the financing option that best aligns with their specific goals and financial circumstances.

The Title 17 Clean Energy Financing Program for Commercial Solar Financing

The Title 17 Clean Energy Financing Program provides loan guarantees designed to advance clean energy deployment and energy infrastructure reinvestment. This program offers flexible financing options across four key project categories:

• Innovative Energy (Section 1703): Supports projects that deploy New or Significantly Improved Technology, which is technically proven but not yet widely commercialized in the U.S.
• Innovative Supply Chain (Section 1703): Targets projects that incorporate New or Significantly Improved Technology in the manufacturing process for clean energy or production of such technologies.
• State Energy Financing Institution (SEFI; Section 1703): Focuses on projects that deploy qualifying clean energy technologies with substantial financial backing or credit enhancements from state agencies or financing authorities. Unlike other categories, SEFI projects do not require the use of innovative technology.
• Energy Infrastructure Reinvestment (EIR; Section 1706): Supports projects that retool, repower, re-purpose, or replace energy infrastructure, such as electric generation or transmission facilities, or fossil fuel-related production facilities. These projects aim to reduce emissions and are not required to employ innovative technology.

Commercial Property Assessed Clean Energy (C-PACE) in Scottsdale

Property owners can fund energy, water, resilience, and public benefit projects via a voluntary assessment on their property tax bill. Commercial PACE (C-PACE) programs are the most common type in the U.S. and are the focus here. Read more below about Commercial Financing Incentives.

This toolkit features profiles of around twelve solar financing incentives for clean energy, energy efficiency, renewable energy, sustainable transportation, and electrification.

• C-PACE is repaid through a property tax assessment, which remains with the property if it’s sold.
• Long-Term Repayment: Terms align with the lifespan of improvements, ensuring energy savings cover annual repayments.
• No Upfront Costs: Up to 100% of project costs are financed, eliminating the need for initial capital outlay.

C-PACE could be an ideal solution for your organization if it:

• Owns or occupies facilities within jurisdictions that offer C-PACE programs
• Seeks long-term financing options (10+ years) with lower monthly payments
• Prefers to start with pilot projects at select locations, before expanding more broadly
• Plans to transfer financing obligations upon selling the property, rather than retaining ownership long-term
• Aims to invest in durable improvements that enhance building resiliency and reliability

For tailored support in comparing C-PACE against alternative financing choices, contact Solar Topps to explore solutions for your business needs.

Scottsdale Commercial Solar Financing Incentives

Scottsdale, AZ offers robust incentives to make solar energy more accessible and affordable for businesses:

Federal Solar Tax Credits for Scottsdale Commercial Property Owners

Arizona businesses can also benefit from federal tax incentives, including:

• Production Tax Credit (PTC): Offers 2.75 cents per kWh for the first ten years of system operation, adjusted for inflation, providing long-term financial benefits.

Leveraging MACRS to Lower Taxes for Solar System Installations

The Modified Accelerated Cost Recovery System (MACRS) offers additional tax advantages:

• How MACRS Works: Solar systems can be depreciated over a five-year schedule, with a 100% bonus depreciation available until the end of 2022.
• Maximize Savings: By taking full advantage of MACRS, businesses can significantly reduce their tax burden, making solar installations even more cost-effective.

The Fine Print: Common Commercial Solar Financing Pitfalls to Avoid

Thorough due diligence is essential to ensure the success and profitability of your commercial solar investment. By carefully addressing key aspects during the planning and negotiation stages, businesses can avoid unexpected complications and maximize the value of their solar installations. Below are critical areas to focus on:

• Understand Contract Terms: Ensure all contract terms are reviewed and clearly defined, including timelines, payment structures, equipment warranties, and performance guarantees. Ambiguities in agreements can lead to disputes or additional costs later.
• Lock in Fixed Rates: Negotiate fixed energy rates where possible to protect your business against fluctuating utility costs. Fixed pricing offers predictability and stability for long-term financial planning.
• Plan for Future Expansion: Consider your business’s growth trajectory and how your solar system can accommodate future energy needs. Incorporating scalability into your initial design can save significant costs and time down the line.
• Ensure Long-Term Maintenance: Confirm that warranties and maintenance agreements cover the expected lifespan of the solar equipment. A reliable maintenance plan safeguards your investment by ensuring optimal system performance and addressing potential issues promptly.

By addressing these considerations during the due diligence process, businesses can mitigate risks and position themselves for long-term success with commercial solar solutions.

The Future of Commercial Solar in Scottsdale, Arizona

Solar Topps helps business owners navigate commercial solar financing and government incentives, making solar energy accessible and affordable. Tax breaks, credits, and creative financing like PPAs and C-PACE enhance the financial feasibility and long-term benefits of solar installations. Investing in solar not only leads to cost savings, but also contributes to sustainability and reduced carbon emissions. For more detailed information on how your business can benefit from these opportunities, visit SolarTopps.com/Commercial today.

At Solar Topps, we service the entire city of Scottsdale. Whether that be from the youthful and exciting Old Town Scottsdale, to Central Scottsdale, to the quiet neighborhoods and cities like Cave Creek and Carefree, we have you covered. See the map below of the entire service area we offer for Scottsdale Residents.