Solar Operating Leases

Solar leases and solar power purchase agreements ppas are two kinds of solar financing options that make it easy to install a solar system on your roof.

Solar operating leases. A capital lease is owning the equipment and an operating lease is like renting the equipment from a tax perspective. A common decision for business owners planning to go solar is whether to apply for an operating lease or a capital lease. You enter into an agreement with the solar leasing company that entitles you to the benefits of the system i e the energy that the solar panels generate for the term of the contract which is generally around 20 years. Fixed monthly payment for all electricity delivered.

In this blog we break down how exactly these financing options are different and which one might be the best choice for you. Solar operating lease solar pro. Some of the benefits include. An operating lease may be the ideal financing structure for for profit companies that don t have an appetite for the federal itc or macrs tax credits or depreciation the tax benefits of the operating lease are utilized by the lessor and that value is passed back to the lessee in the form of lower lease payments.

A solar operating lease is a contract to pay a fixed monthly amount for consuming electricity generated by a solar power system on your premises. You pay a fixed monthly amount to use the energy generated by the solar system on your roof. This is a critical decision as there are numerous tax implications and financial benefits in each product. Both solar leases and solar ppas are very similar making it hard to tell the difference between the two.

Solar leases and solar ppas are similar to renting your solar panel system. That being said typically at the end of the life of an operating lease ownership will transfer to the lessee. It should be stated that operating leases for solar are rarely used. Financing of commercial solar projects makes a lot of sense when the owners finance payment is less than their monthly utility bill and they are still getting all their energy needs met.

We offer an economical solar pro operating lease for commercial for profit entities with exceptional reductions to. Unlike a capital lease with a fixed purchase price at the end of the lease. The tax benefits of the capital lease are utilized by the lessee and that value.