Under a solar lease financial model, the business or property owner acquires the solar array via a capital lease or operating lease. These financing methods are quite common for businesses that prefer to deploy their capital in other areas of their business. Massachusetts has built a “bankable” financing model with the state’s SREC (Solar Renewable Energy Certificates) and SREC II programs. Traditional lenders, local banks, and third-party investment sources are increasingly more comfortable with the dependability and predictability of SREC revenue to secure financing. Third-party investment firms have emerged and are working with businesses both to provide loan and leasing products and as owners of Power Purchase Agreements (PPAs).
Benefits of a Solar Lease:
- 100% financing no up-front capital costs
- Own a solar system at a substantial discount when choosing an operating Lease
- Benefit from Investment Tax Credits (ITC) whether you have the tax appetite or not
- 7 to 10 year lease terms
- Finance both the hard assets and soft costs.
- Operating Lease payments are 100% tax deductible
- Benefit from lower energy cost avoidance
- Benefit from SREC revenue income streams
- Improved Commercial Property Values
- Additional Revenue Streams
- Environmental Leadership & Sustainability
Solect will work with you during the feasibility assessment to determine which financial solutions are most appropriate for your long-term success.