Lease Agreement Suitable for homeowners, small, medium and large-sized businesses.
Financier owned solar system is leased back to customer at an agreed-upon amount per month.
How it works?
- In some cases, monthly payments can be reduced by agreeing to a balloon payment at the end of a specified term
- When the lease terms end, customer has option to purchase and own solar system
- If a balloon payment is involved, may be able to renegotiate the amount of the balloon payment through agreed-upon monthly payments for a specified term.
How you benefit?
- Cost Savings
- No upfront cost
- Insulated against continuing electricity rate hikes
- Same amount paid for system-produced energy each month, regardless of how much power is used
- Bundling: Include installation and equipment cost in lease agreement
- Budget ease due to fixed lease payments
- No need to account for or declare equipment depreciation
- Planning: You know at the beginning of lease term exactly what it will cost to purchase system when the lease ends
- Add equipment if needed during lease term and include in renegotiated monthly payment
- Flexibility – opportunity to purchase the system at end of lease term, or (if balloon payment is involved), to renegotiate a second lease term
- Business tax benefit: Leasing is a fully deductible operating expense for business tax purposes.
Standard Monthly Rental Suitable for homeowners, some commercial property owners
Financier owns the renewable energy system permanently
How it works?
- Solar user rents the system for an agreed-upon monthly cost over a specified period
- As owner of system, financier can elect to remove the system and install another. If this occurs, a new repayment schedule would apply
How you benefit?
- No upfront capital investment
- No longer tied to standard electricity rate hikes
- Use as much power from the system as you like and pay the same monthly amount
- Eases burden on cash flow