Solar for Rental Properties in Arizona: How Landlords Can Save and Earn

Are you considering solar energy for your home in Phoenix? Now is the perfect time to harness the power of the sun and take advantage of significant savings through federal and state tax credits. Our team at Phoenix Valley Solar can help you navigate these incentives and maximize your savings. You can also use our Arizona Solar Calculator to get an estimate of your potential benefits.

If you own a rental property in Phoenix, Mesa, Chandler, or anywhere in the Valley, you know that operating costs can cut into profits—especially when utility bills rise during Arizona’s brutal summer months.

That’s why more landlords and real estate investors are turning to solar energy as a long-term strategy to reduce expenses, increase property value, and attract quality tenants.

Here’s how solar panels on Arizona rental homes can help you save money, lock in predictable costs, and potentially increase your monthly income.

1. Solar Reduces Operating Costs

Owning rental property means dealing with:

• High summer electricity bills

• Increasing utility rates from APS or SRP

• Maintenance of HVAC and energy systems

Installing solar panels allows you to:

• Offset part or all of the property’s electric use

• Reduce the need for constant A/C-related service calls

• Build in a fixed operating cost for energy over the next 25+ years

Whether you include utilities in rent or bill them separately, solar helps you stabilize one of your biggest expenses.

2. Solar Adds to Property Value

According to multiple studies, homes with solar panels:

• Sell for more than comparable homes without solar

• Rent faster in competitive markets

• Are more attractive to long-term tenants

For rental homes, this means:

• Higher resale value if you choose to sell

• Stronger ROI over time

• A valuable listing feature for Zillow, Craigslist, and Airbnb

And because Phoenix is one of the sunniest cities in the U.S., solar is more productive here than nearly anywhere else.

3. You Can Include Electricity in Rent (and Still Profit)

If your property has solar, you can:

• Include electricity in the rent as a “bonus” utility

• Market the home as energy-efficient and affordable

• Attract tenants who are eco-conscious or budget-minded

In many cases, the cost of financing a solar system is less than what tenants would pay for grid electricity, especially in the summer.

That means you can add $100–$200/month to rent, still undercut APS or SRP rates, and come out ahead—while offering value to your tenants.

4. Short-Term Rentals Benefit Too

Own a vacation rental in Scottsdale, Tempe, or Sedona?

With solar, you can:

• Keep the A/C running between guests without worrying about cost

• Power pools, spas, and EV chargers without major utility spikes

• Market your property as a “green” or energy-neutral stay

Some hosts use solar to add premium amenities like hot tubs or heat lamps—without hurting monthly margins.

5. Battery Backup Adds Reliability and Appeal

Pairing your rental property’s solar system with a Tesla Powerwall or other battery:

• Keeps critical systems (A/C, fridge, internet) on during monsoon outages

• Reduces peak-time usage under TOU plans

• Increases the property’s resilience and independence

In areas where grid reliability is an issue, this makes your property more attractive—and reduces tenant complaints or turnover.

6. Tax Incentives Still Apply

As a property owner, you may be eligible for:

• The 30% Federal Solar Investment Tax Credit (ITC)

• The $1,000 Arizona Residential Solar Tax Credit

• MACRS accelerated depreciation if the home is rented year-round

• Additional state or local rebates depending on utility provider

Solar for rentals often pays off faster than solar for owner-occupied homes due to tax advantages. We work with your CPA or advisor to ensure you claim everything you're eligible for.

7. Why Landlords Across Arizona Are Going Solar

Whether you own one home or a portfolio of properties, solar helps you:

• Increase cash flow

• Differentiate your rentals

• Improve tenant satisfaction

• Protect your long-term ROI

And with options for zero-down financing, solar can be installed with little to no upfront cost - then paid for using rental income.

Why Work with Phoenix Valley Solar?

We help landlords:

• Evaluate the cost-benefit of solar for each property

• Design systems to match seasonal usage and roof space

• Coordinate with tenants or property managers

• Provide documentation for appraisers and tax professionals

We’re the best solar company in Phoenix for real estate investors who want energy savings, passive income protection, and full-service support.

Ready to Add Solar to Your Rental Property?

Contact Phoenix Valley Solar today for a custom quote. We’ll help you turn your rental into a smart energy investment that benefits your tenants, your bottom line, and the planet.

Are you considering solar energy for your home in Phoenix? Now is the perfect time to harness the power of the sun and take advantage of significant savings through federal and state tax credits. Our team at Phoenix Valley Solar can help you navigate these incentives and maximize your savings. You can also use our Arizona Solar Calculator to get an estimate of your potential benefits.