For two decades, the Residential Clean Energy Tax Credit (often called the solar ITC) helped make solar an easy financial decision for homeowners. By allowing 30% of the system cost to be claimed directly against federal taxes, it played a major role in the growth of rooftop solar.
When that incentive expired at the end of 2025, many Arizona homeowners assumed the opportunity for maximum savings disappeared with it. But we've seen industry changes before. When the landscape shifts, we adapt—and we're excited to introduce a new path to significant solar and battery savings.
Creative installers like Sun Valley Solar have developed a new generation of solar leases from the ashes of the residential ITC. Our home-grown Sun Valley Amicus Impact Prepaid Lease is far removed from the rigid, long-term contracts of years past. Instead, it gives homeowners access to commercial tax incentives that remain available, with the savings reflected in a single upfront lease payment—no need to wait until tax season to realize the benefit. The tradeoff is that Sun Valley Amicus Leasing owns the system during the initial five-year lease term. Beginning in year six, you can choose to continue leasing or purchase the system at its then-current fair market value..
So how does our new lease model actually work? Let’s take a closer look.
Key Takeaways
Save Up to 25% Upfront: Commercial tax incentives are reflected in your prepaid lease payment—no waiting for tax season to realize the savings.
Purchase Option After Year Five: Beginning in year six, you can choose to purchase the system at its then-current fair market value or continue the lease.
Five Years of Worry-Free Protection: Monitoring, maintenance, and a production guarantee are all included during the initial lease term.
While the residential tax credit is gone, the commercial Solar Investment Tax Credit (ITC) remains. Governed by Section 48E of the Internal Revenue Code, it provides a substantial tax incentive to businesses that own and place qualifying solar energy systems into service.
The key is this: when a solar system is owned by a business instead of the homeowner, that business can claim the commercial tax credit.
That's exactly how the Sun Valley Amicus Impact Prepaid Lease works. During the initial lease term, Sun Valley Amicus Leasing owns the system and claims available commercial tax incentives. A significant portion of that value is reflected in the customer's prepaid lease payment, delivering up to 25% in upfront savings depending on the equipment selected.
In other words, homeowners can benefit from the value created by available federal commercial solar incentives without claiming those incentives on their personal tax return. Sun Valley Amicus Leasing owns the system throughout the initial five-year lease term. Beginning in year six, homeowners can choose to continue the lease or purchase the system at its then-current fair market value.
The word "lease" carries some baggage—and understandably so. Many traditional solar leases locked homeowners into 20- to 25-year contracts with annual payment escalators, complicated home-sale transfers, limited upgrade options, and no clear path to ownership. They often worked better for the financing company than for the homeowner.
The Sun Valley Solar Amicus Impact Prepaid Lease represents a new generation of solar leasing. Designed around today's market, it addresses many of the frustrations that gave traditional leases a bad reputation. Here's what makes it different:
Prepaid means no monthly payments during the initial five-year term. You make a single upfront lease payment, with the value of available commercial tax incentives already reflected in that payment.
A reasonable question homeowners ask is: “If I’m the one generating energy on my roof, why would I want someone else to own the system for the first five years?”
The answer is that it is only through the third-party ownership (TPO) option that the tax credit benefits are accessible. Cash purchases remain the best way to secure immediate ownership, but they don't provide access to the commercial tax incentives available through the prepaid lease structure. But if a brief TPO period is acceptable, there are additional benefits that homeowners often don’t get when they purchase outright:
Let's see how this new approach compares to a traditional solar lease of years past.
|
Feature |
Traditional Solar Lease |
Re-Imagined Prepaid Lease |
|
Purchase Options |
Generally no clear path to ownership; you pay monthly until the lease term is concluded. A buyout option may be offered at that time. |
Beginning in year six, you may continue the lease or purchase the system at its then-current fair market value. |
|
Payment Structure |
Often includes annual payment escalators, meaning your rate increases every year. |
Prepaid lease, meaning there are no ongoing payments—and therefore not subject to annual escalators. |
|
Home-Sale Transfer |
Can be complicated and may require the new buyer to meet strict credit requirements to take over the lease. |
Beginning in year six, a fair-market-value purchase option is available. Early transfer options may also be available. |
|
Service and Maintenance |
Typically included during the TPO period, defaulting to remaining manufacturer’s warranty after the TPO period has concluded. |
Typically included during the TPO period, defaulting to remaining manufacturer’s warranty after the TPO period has concluded. |
|
Tax Incentive Benefit |
The leasing company keeps the tax credit; homeowners may see some indirect savings on their monthly bill. |
Leverages available commercial tax incentives to provide up to 25% in upfront savings through the prepaid lease payment. |
Born From Our Coop Mindset & Values
Sun Valley Solar Solutions is a proud, long-standing member of the Amicus Solar Cooperative—a national network of independent, values-driven solar companies. Instead of competing, Amicus members collaborate. We share best practices, leverage our collective purchasing power, and hold each other to the highest ethical and operational standards in order to build happier solar customers and a healthier industry overall.
When the residential tax credit expired and national banks began pushing rigid contracts with hidden fees, a group of Amicus members decided homeowners deserved a better option. We came together to form Amicus Impact Leasing, a new entity built from the ground up on our shared cooperative values: absolute transparency, community benefit, and putting the customer first.
This collaborative effort is the foundation of the Sun Valley Amicus Impact Prepaid Lease.
Instead of handing your financial future over to a faceless Wall Street middleman, you are partnering with an entity created by solar professionals, for solar customers. This cooperative structure is what allows us to utilize available commercial tax incentives while maintaining total local accountability.
We handle the installation and proactive maintenance, and we own the system for the first five years, ensuring your system performs exactly as promised. Then, beginning in year six, you can choose to continue leasing or purchase the system at its then-current fair market value. No endless bills, no complicated home-sale roadblocks, and no warranty drop-offs.
As more companies introduce prepaid solar lease programs that benefit from this commercial tax credit workaround, you'll likely find similar savings and ownership timelines from other providers.
The difference isn't just how the lease is structured—it's who stands behind it.
Many prepaid lease programs are owned by national banks, investment funds, or third-party financing companies. The solar installer sells the system, but once the paperwork is complete, long-term ownership and many customer responsibilities shift to someone else. If questions arise later, homeowners may find themselves working with multiple companies, each responsible for a different part of the experience and accountable to people pulling the strings behind the scenes.
The Sun Valley Amicus Impact Lease was built differently.
We are your leasing partner, system owner, designer, installer, and long-term support team. From your first consultation through installation, ongoing care, and whatever option you choose after the initial lease term, you work with the same Arizona-based company every step of the way.
In Arizona, the financial case for solar remains as strong as it’s ever been. SRP has implemented recent rate increases, and APS has a proposed 14% rate increase on the docket for 2026. For homeowners running air conditioning for six or more months a year, generating your own electricity isn’t just an environmental choice, it’s increasingly a financial necessity and the only viable alternative to being wholly dependent on the grid.
The loss of the residential tax credit removes one incentive pathway, but newer more flexible lease options like the Sun Valley Amicus Impact Prepaid Lease create another pathway by leveraging available commercial tax incentives in a way that is arguably even more accessible because it doesn’t require a tax liability to receive the benefits. What’s more, there are significant operations and maintenance advantages during the TPO period.
The expiration of the residential ITC marked a major shift for the solar industry, but it didn't change our mission: helping Arizona homeowners make smart, financially sound investments in clean energy.
Over the past two decades, we've weathered changing net metering policies, supply chain disruptions, utility rate reforms, and countless incentive changes. Around here, we jokingly call it the "Solar Coaster." Every challenge has pushed us to innovate—and the Sun Valley Amicus Impact Prepaid Lease is the latest example.
By leveraging available commercial tax incentives and combining them with flexible options after the initial lease term, we've created a prepaid lease that delivers meaningful upfront savings without many of the drawbacks associated with traditional solar leases. It's transparent, flexible, and designed specifically for today's market—not yesterday's.
The opportunity for affordable solar and battery systems hasn't disappeared. It has simply evolved.
If you're considering solar or battery storage in 2026, we'd love the opportunity to show you how the Sun Valley Amicus Impact Prepaid Lease compares with a traditional purchase and help you determine which option is the best fit for your home, finances, and long-term goals.
Ready to explore your options?