Understanding Commercial Solar Operating Leases
We all know Solar is a great option for businesses because it can save money on energy bills and help reduce carbon emissions, but sometimes upfront installation and system costs can be prohibitive. Thankfully, there are a few different opportunities to finance your commercial solar project. One popular method is an operating lease. In this blog post, we’ll explain what a commercial solar operating lease is and how it can benefit your business.
What is a commercial solar operating lease
A commercial solar operating lease is a type of lease that is used to finance the installation of solar panel arrays on commercial properties. The lease is structured so that the lessee makes monthly payments to the lessor, which covers the cost of the solar panels and their installation. The lease term is typically 15-20 years, after which the lessee has the option to purchase the solar panels or have them removed. Commercial solar operating leases are a popular financing option for businesses looking to go green and save on energy costs.
How does a commercial solar operating lease work
The lease is an agreement between a business and a solar installation company in which the solar company agrees to install, maintain, and own a solar energy system on the business’s property. The business then pays a monthly fee to the solar company for the use of the system. operating leases are usually structured so that the monthly payments are equal to or greater than the savings generated by the system. This allows businesses to take advantage of solar energy without any upfront costs or long-term commitment.
The benefits of a commercial solar operating lease
A commercial solar operating lease is a great way to go solar without any upfront costs. With a commercial solar operating lease, you simply pay a monthly fee for the solar panels that are installed on your property. The solar panels are owned and operated by the solar company, so you don’t have to worry about maintenance or repair costs. In addition, commercial solar operating leases often include a performance guarantee, so you can be sure that your investment will pay off. Solar energy is a clean, renewable resource that can help to reduce your business’s carbon footprint. If you’re looking for a way to go green without breaking the bank, a commercial solar operating lease is a great option.
The disadvantages of a commercial solar operating lease
While commercial solar operating leases offer a number of benefits, there are also some drawbacks to consider. One of the primary disadvantages is that the property owner does not own the PV system, and as such, they are not eligible for any tax incentives or rebates that may be available. Additionally, the terms of the lease can be inflexible, and if the electricity rates increase, the property owner may be locked into an unfavorable rate. Finally, if the solar developer defaults on the lease, the property owner may be responsible for removing the PV system. For these reasons, it is important to carefully consider all of the potential advantages and disadvantages before entering into a commercial solar operating lease agreement.
Things to consider before signing a commercial solar operating lease agreement
Before signing a commercial solar operating lease agreement, there are several important factors to consider. First, the length of the lease should be appropriate for the commercial solar project. Second, the terms of the lease should be clear and concise. Third, the payment schedule should be affordable and realistic. Fourth, the lessee should have a clear understanding of the maintenance and repair obligations. Finally, the lessee should be aware of any restrictions on the use of commercial solar panels. By taking the time to carefully review all aspects of the lease agreement, businesses can ensure that they are making a sound investment in commercial solar.
How to find the best commercial solar leasing company for your business
If you are a business owner who is interested in going solar, you may be wondering how to find the best commercial solar leasing company. Do your research. There are many companies out there that offer leasing options, but better yet, contact Genie Solar Energy. Genie has years of experience in both installing solar systems, but also leasing them. The team will set down with you and understand what is the best financing option of your business unique goals and needs.
Commercial solar operating leases have become a popular way for businesses to go solar. They offer many benefits, but there are also some things to consider before signing an agreement. If you’re thinking about leasing a commercial solar system, be sure to do your research and find the best company for your business. Thanks for reading!