Access Clean Energy Without Owning A PV System
A solar lease allows a business to benefit from the clean energy generated by a solar system without purchasing the system outright. Similar to traditional equipment lease agreements, solar leases provide the use of the solar equipment in exchange for a fixed, monthly payment by the lessee. This commercial financing option requires little-to-no upfront capital investment.
At the end of the lease agreement (typically 5-7 years), commercial solar customers will have the option to purchase the system at a reduced cost, renew the lease, or have the system removed. The combination of known lease payments and lower utility bills typically leads to an immediate reduction in electricity costs and provides increased savings over time.
Capital vs. Operating Leases
The basic differentiator between a capital lease and operating lease is the impact to a commercial solar customer’s financial statement. Capital leases are listed on-balance sheet and shown as an increase in liabilities and leverage. Operating leases are listed off-balance sheet and reported in statements as rent expenses.
One deciding factor between these two options is whether or not the commercial property owner wants to own the solar system. A capital lease involves owning the PV system and, going hand-in-hand with owning and being on balance sheet, the customer is able take advantage of tax incentives.
An operating lease is more like renting the system. This commercial financing solution offers the benefit of worry-free solar where the customer is simply taking advantage of the electricity cost savings compared to the cost nonrenewable resources.
Our Lease Partners
Click below to view our solar lease partners and product details.
*DLL offers a capital lease financing solution
**Univest offers both a capital lease and operating lease financing solution
Learn more about commercial solar leases
To consult with a Cornerstone Commercial Finance team member about solar lease products before choosing a provider, simply fill out the form here.