Top 10 Reasons to Lease your Solar System

  1. 100% Financing
    No out-of-pocket costs. No down payments. No deposits. Zero initial cash outlay.
  2. Optimal Use of Federal and State Energy Tax Benefits
    Federal solar tax credit and accelerated depreciation lower the lease payment.
  3. Renewable Energy Credits and Carbon Credits
    All applicable and available credits benefit the client’s account.
  4. Fixed Payments for the Lease Term
    Fixed monthly lease payments represent a significant hedge against rising utility rates.
  5. Expensed Lease Payments
    Most leases are considered "true leases" for tax purposes, with the lease payments treated as an operating expense.
  6. "Operating Lease" Accounting Treatment
    Most leases meet FASB 13 criteria for off balance sheet, "operating lease" accounting treatment.
  7. Preserve Credit Lines
    Leasing represents an alternative source of funds. Bank lines remain intact for other uses.
  8. Fixed Purchase Option
    Structure the lease to offer a fixed—not fair market value—purchase option at the end of the lease term.
  9. Renewal Options
    Attractive renewal options are available with every lease.
  10. Savings
    Solar provides enormous savings over paying high utility rates both immediately and over the long term—see our lease cash flow comparisons.

Procedural Flow

Economic cash flow comparison of the lease payments vs. utility bills

Lease proposal signed and submitted for financing approval, along with the company’s financial statements

Commitment letter issued

All lease documentation prepared for execution

Construction begins

Final acceptance of the completed and installed solar system, commencing the lease.